Money To Live

September 8, 2008

Retirement benefits for teachers

Filed under: education,retirement — by moneytolive @ 5:00 am
Tags: , ,

After I gave copies of On My Own Two Feet to some of my cousins, my extended family had a conversation about money and finances.

On one side of my extended family, all of the women out of college (except me) are either contributing to or receiving income from a teacher retirement fund. All of the women (except me) either are currently working in education or worked in education in the past. I was very surprised to realize this, but maybe it should not be too surprising in a family that is overall highly educated and that has houses full of books.

Good teachers and educators are never paid what they are worth and frequently spend money out of their own pockets to provide for their students. While I think teacher salaries should be much hire (1.5x or 2x what they are currently), I am glad to know that teachers are supported in retirement.

Teacher retirement plans vary by state and by education level. Calculating expected benefits can be complicated, and the easiest way to get information is to visit your HR department. I spent some time reviewing benefits from the Teacher Retirement System of Texas, and it took a significant amount of time to wade through the information and determine what was applicable to my mom. Some information about health insurance in retirement was not available online, but a friendly customer service agent was able to answer all of our questions.

If you are a teacher or are considering teaching, I recommend that you look through the retirement papers as soon as you start working (even if retirement is 30+ years away). In Arkansas, for example, retirement benefits can vary drastically based on a contribution choice made at the initial hiring.


1 Comment »

  1. Oh, my goodness. We are all educators aren’t we? And you were, too, for a span of years although we all admire your escape to a better 401K. I don’t think of myself as a member of four generations of teachers. Thanks for pointing out the obvious.

    Comment by Mary Bold — September 8, 2008 @ 1:08 pm |Reply

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