For teachers that are about to retire, do you feel as if you have sufficient funds to allow you to retire coming from your pension or investment accounts? I’m in my third year of teaching and contributing over 1000 a month to my 403b retirement account, 600 a month into my Roth IRA, and maxing out my health savings account but I’m not sure it will be enough to allow me to retire by the time I hit my 20th year. Do you feel as if this is enough?

Are you paying attention to the economy and inflation? None of us will have enough money for retirement. The history of situations such as what we are currently trending toward is that pension and retirement funds become nationalized, both private and public, and then some sort of welfare system is put in place for the elderly.

The exception could be that because of our size and our currency’s status with the power of the petrodollar, we may have some sort of new outlier future. Possibly a new currency and if so all bets are off as to how much our funds would be converted into.

There are possible good outcomes, but it doesn’t seem likely unless China collapses soon (within 30 years) and the EU has to rely on us as a singular economic power with a hint of solvency. If that’s the case, then our debt and currency issues don’t matter. And the possibilities with the timeline I describe makes the current moves with the BRICS very relevant.

TL:DR I think we are probably all screwed. I don’t know where to run to, though, if it comes to that. Most likely war is coming in some form if it isn’t already happening.

Your daily dose of sunshine. You’re welcome.

I think you’re doing a good job, OP. I don’t think I was very cognizant of my retirement savings by my 3rd yr of professional work and I wasn’t married at the time either.
You’ll be able to gauge what you need to, modify, adjust as time goes on. Good job!

No, I don't. That's why I've started socking more money away and being strategic about my personal investments. I saw my parents suffer through their retirement with little cushion and it wasn't pretty. I don't want to end up in the same boat. I'd rather have too much saved up than not enough.

I am at 25 years. My pension will definitely not be enough on its own. No other income in my household. I would need to find a second job. Nowhere close to social security

My mom was a teacher also and one thing she taught me was to invest. She got with a real stock broker early in her career that advised her to invest with certain stocks early in her career. She originally invested like $2,000 and by the time she retired she had around 100k form stocks along with money saved in her retirement account and IRA

I’ll be taking home about $3,800 a month clear. I can get by with the basics in retirement but to travel and go on trips and such I’ll have to substitute or get a part time job. Honestly, I’m could work longer but I’m tired after nearly 30 years. Teaching is not what it used to be on many levels as the mandates, data, stress are taking a toll on me. We spend some time on social/emotional learning but we need to do more for ourselves and the kids around civility.

I teach in Missouri and our plan is known as PSRS and each certified teacher, principal, counselor, social worker, etc contributes 14.5% of their salary and the district matches (100%) of that contribution. If you teach 30 years or reach rule of 80. (Combination of age and years of service in the system) when you retire you will receive essentially the exact same take home pay of your average of highest 3 consecutive years. Additionally, we have the option of contributing to a 403b and or Roth IRA. It is not uncommon for us to be retired by 52-53 years old….I will reach rule of 80 when I am only 53 years old. However, if I work 3 additional years I will be eligible for rule of 86 which has multiple benefits, such as partial cash out options or about 1,200 more per month. I wish more states would look into a system like ours.

Yes, I did some creative investing and I will have my full salary at retirement. Investing early is so important because those funds have. the most time to grow. There are also places you can put your funds that have tax and other benefits. I'm in CA and teaching since I was 22 years old.

You are doing great OP.

The advice I got 20 years ago when I began teaching "Invest and save like you will never get your actual teaching retirement or SS."

I am near the end. Pension and social security. Plus IRA. I hope it’s enough. My husbands social security also. House is pd for in Sept. all credit cards paid off. Almost done with a home equity loan. We should be ok. Made sure all household things up to date like furnace and roof. Next June can’t come fast enough!!!!

I love that you are living frugally and thinking about your future. That is definitely a good start. In my state you are not eligible to retire until a minimum age of 55 years. The younger you retire the less they pay you per month because they pay you for the rest of your life. They calculate it based on average life expectancy. You can stop teaching at 45 and either do something else or draw income form other sources until you are of qualifying retirement age. There are a few investments that you could do now that would bridge the gap for you during that time.

Health insurance and the cost of of healthcare in general is a huge factor. If you get health insurance outside your employer group at age 45 it will likely be expensive.

No, hence why I don't plan on retiring until I reach Principal and have worked it for at least 10 years - even if I retire at 75

20 years. Are you serious? Hell no.

I am impressed that on a 3rd year teacher salary you are able to save $1600+ a month.

Not sure why you are planning to retire after only 20 yrs though unless this is a second career. Most people work closer to 40 years.

There are online calculators for working out the financial side of things. Assuming you are in your mode to late 20s, I would guess the problem will be health insurance. Mid 40s until mid 60s before you can claim Medicare is a long time no matter how much you have in HSA accounts. At todays rate you can factor between $800 to $1200 dollars per month for health care premiums.

If you have a spouse with reliable health insurance that’s great, but predicting that 20 years from now is a big risk.

Or switch districts and get a huge pay raise because they put you at the step for # of years teaching- just doubled my salary after completing Masters+30 and negotiating a huge pay day in another district.

Tenure isn’t what it is anymore - why be loyal to a district just because of tenure? Know your worth, gain more education, and go get yourself your desired salary.

Contracts and salary guides are always holding you back from ever achieving the big bucks as a teacher due to strikes, contract negotiations and if your union is weak - loss of pay or step increase, retro, etc.

I finally listened to this advice and I wish I did years ago - after almost 15 years teaching - I’m making 6 figures.

Know you’re worth - shop the districts - you have a job - see what they will do to want you!

Check out this podcast: https://teachandretirerich.com/podcasts/
You are off to a great start with your 403b and Roth!

You are really smart to do your own retirement and roth accounts. How is your state retirement plan to go with it?

I want to retire when I can still do fun, active things. I’ve only been teaching for 10+ years. It doesn’t matter to me; I have social security, family, etc.

No- it is never enough with the economy.