The Dally Group

Bigger Joy. Bigger Impact.

Teachers play a vital role in shaping the future generation, but when it comes to retirement planning, many educators face challenges.  Uncertainty for life-after-teaching can cast a dark cloud over those years heading into retirement.  It’s our mission to provide clarity for the road ahead and equip teachers with the information they need to retire on their own terms.

Common Misconceptions Surrounding Retirement:

The Big Three:

Overreliance on Pension

Many teachers go into the profession, despite the relatively low wages, with the expectation that they will be taken care of in retirement through their pension. But in many places, that promise isn’t being met.

Neglecting Additional Savings

In several states, retired teachers and other state workers haven’t gotten a cost-of-living adjustment to their pension checks in years. And with the cost of health care continuing to rise, retirees say they’re reaching a breaking point.

Social Security Eligibility

About 40 percent of public school teachers are not covered under Social Security because of state policies—making pension payments critical in retirement.

Advantages of Knowing What You Don't Know

  • When you are aware of all the available retirement options, you can make informed decisions based on your specific needs and goals.
  • Strategically allocate your resources and take advantage of any employer matches, tax advantages, or government benefits that may be available to you.
  • Instead of relying solely on a single plan or source of income, you can spread your retirement savings across different accounts or investment vehicles, potentially reducing risk and increasing financial security.
  • Customize your retirement strategy based on your unique circumstances.
  • Achieve peace of mind by knowing what to expect.

Why Should I Meet with an Expert?

Teachers often have a mix of potential income sources, and with around 40% of teachers not paying into the system, eligibility for Social Security benefits can vary.

An expert can provide guidance on maximizing retirement benefits, understanding state-specific programs, and developing a comprehensive plan that aligns with individual financial goals and circumstances.

Making informed decisions, optimizing your retirement savings, and dancing around the intricacies of the retirement landscape all begin with a conversation.

Why it's important to have an exit strategy?

A solid exit strategy helps educators welcome retirement with a roadmap for their next steps.

Retirement can be an emotionally challenging time for teachers. Leaving behind the students they’ve nurtured and the relationships they’ve built can cause feelings of loss and detachment. However, a solid exit strategy takes into account the emotional well-being of teachers. It encourages them to maintain connections with colleagues, alumni, and the broader educational community, providing opportunities for continued engagement and support.

FAQs When Heading Into Retirement

Is my pension in good shape?

Teachers may want to ensure that their pension is in good standing and understand the filing deadlines, expected benefits, and potential refunds they may be eligible for. Communication with their pension provider is essential to address any concerns or obtain necessary information

Can my pension be upgraded?

Teachers nearing retirement may examine their pension plan to see if there are any ways to enhance their pension income. This can include understanding how the pension is calculated and exploring options for optional service credits that may increase their benefits

What do I want my retirement to look like?

Teachers may contemplate their retirement lifestyle and consider their desired activities, such as travel, starting a business, spending time with family, or continuing to work. Balancing choices with income needs is essential when planning for retirement

How will health insurance work once I retire?

Understanding retirement health benefits is crucial for teachers. They should determine if their district provides health insurance at retirement and comprehend the coverage and associated costs. Teachers retiring from districts without health insurance benefits may need to explore alternatives such as finding another job with health insurance or navigating the private insurance marketplace

How can I supplement my pension?

Teachers may explore additional ways to supplement their pension, as pensions often fall short of their current salary. They might consider saving and investing in tax deferred retirement accounts like 403(b) and 457(b) plans, or tax-free retirement accounts like participating whole life or fixed indexed annuities, which can bridge the gap between pension benefits and current income. Working with a professional financial representative can help create a personalized solution

Build Wealth. Secure Wealth. Enjoy Wealth.

We’ll show you how.