New career options for a teacher

[undertheradar]

Our health care is not cheap. We pay $800 a month for a family of 4 with fairly large co-pays and a large yearly deductible. Also, 10% off of the top of each check goes towards retirement. We've also suffered pay cuts which I didn't mention because a couple of years later the pay cut ended, but by that time, our health insurance premiums and retirement contributions had increased. Also, remember when payroll taxes were lowered and as a result people saw bigger paychecks (to stimulate the economy)? Well, when that happened, the state decided we had to increase retirement contributions again and figured we wouldn't feel the pain because everyone was getting that extra stimulus money, so the increase in retirement contributions was offset by the stimulus money. Then when the stimulus ended and the payroll taxes went back up, we had another pay decrease because we never got the stimulus to begin with.

I am no fool and realize that this happens in other jobs, too. And don't get me wrong -- I don't hate my job at all. However, I would not go into teaching at this time if I were starting fresh and I wouldn't advise anyone else to do so, either unless they were going to teach in the private sector.



Ten percent is taken out of our checks for retirement. I wish it were only 8%!

What age do you get to retire? The retirement age for Social Security keeps rising. While your retirement is guaranteed, not so for Social Security.

 

[morgan98]

Again, I am the daughter of a retired career teacher and I had many excellent teachers during my career. However, I am going to comment on the pension/retirement comments.

The teacher pension plans are defined benefit plans, not defined contribution plans. That means that for whatever your contribution is 8% or 10%, you are guaranteed a monthly payment at retirement that you will draw for the rest of your life. Defined benefit plans in the private sector have basically disappeared. Yes, there are 401(k) plans that one can defer up to $18,000 this year ($24,000 if you are 50 or over), but you are not guaranteed a set amount. Many employer contributions are discretionary too.

Everyone has to put something away for retirement, at least if one plans to retire.

 

[Gumbo4x4]

Our health care is not cheap. We pay $800 a month for a family of 4 with fairly large co-pays and a large yearly deductible. Also, 10% off of the top of each check goes towards retirement. We've also suffered pay cuts which I didn't mention because a couple of years later the pay cut ended, but by that time, our health insurance premiums and retirement contributions had increased. Also, remember when payroll taxes were lowered and as a result people saw bigger paychecks (to stimulate the economy)? Well, when that happened, the state decided we had to increase retirement contributions again and figured we wouldn't feel the pain because everyone was getting that extra stimulus money, so the increase in retirement contributions was offset by the stimulus money. Then when the stimulus ended and the payroll taxes went back up, we had another pay decrease because we never got the stimulus to begin with.

I am no fool and realize that this happens in other jobs, too. And don't get me wrong -- I don't hate my job at all. However, I would not go into teaching at this time if I were starting fresh and I wouldn't advise anyone else to do so, either unless they were going to teach in the private sector.



Ten percent is taken out of our checks for retirement. I wish it were only 8%!

Unfortunately, the contribution MUST increase. The current employees are essentially paying the retirement benefits for current retirees. And as life expectancy increases, so does the cost of retirement. SSN compensates by keeping the contribution the same, but raising the age of eligibility. But, it's the same concept.

50 years ago, a good percentage of the population didn't survive until retirement. And of those who did, a lot of them died in the first few years. These days, it's possible (and not terribly uncommon) to receive retirement benefits for more years than you actually worked. So, while you're putting more in than the previous generation, odds are you will also take more out. Seems only fair.

 

[Gumbo4x4]

I don't mean that teachers are working with profits. Other fields are resentful of a basic living wage and benefits some teachers have maintained. These are kept in place through collective bargaining. Private sector collective bargaining is largely non existent. This is often in spite of the fact that the employers post record profits. People use auto workers as a reason to justify loss of unions. That is a specific type of example. When an item is being manufactured cheaper overseas and Americans choose to buy that instead of course that business will die. That doesn't explain how Walmart makes continual record profits while their employees are surviving off of our tax dollars because they are eligible for government assistance. I believe one of the reasons we have problems with 1% earning 99% is loss of union power.
Resentment because their jobs treat them poorly will desimate the teaching profession.

Of course that explains it. Walmart keeps prices low by keeping costs low. Consumers know Walmart employees aren't terribly well paid, but they shop there anyway. Consumers are just as much to blame as are the corporations. If you're not willing to pay more to "take a stand", you're complicit in the issue.

On another note, Walmart is one of the largest employers of the elderly and of people with mental and physical challenges. A lot of these "less evil" companies won't hire these people AT ALL, regardless of cost.

 

[MrsPete]

As a teacher, all I'm going to say to the comments on teaching, summer vacation, etc. is that the general public is poorly informed on just how teachers are paid -- and most of the people who have the most to say are the most poorly informed. Teaching is a unique job that's difficult to compare to other careers; it has its own perks and its own detractors.

Now, about retirement:

OP, there's no reason you'd need to put in 42 years to reach a teacher pension. Something's very "off" in your math. The reality, however, is that the majority of teachers do not reach their pensions. 3 out of 5 leave the profession within five years, and few put in the years to "max out" their pensions.

Even with a pension, you need to put money away in a 401K as well, and you need to work towards owning a paid-for home. You can't count on a pension to be "everything" in your retirement years.

And for a worker with an average or above salary, whether you have a pension or not, retirement is very possible. Jobs that offer pensions tend to pay the least, but they make retirement seem easier because the program is "automatic" -- that is, the money is deducted from the paycheck each month, and the employee can't avoid saving. Quit whining and investigate your options. Check out these boards (and more):

AARP.org
RetireOnYourTerms.org
MrMoneyMustache.com
EarlyRetirementExtreme.com
BoggleHeads.com

Or go to the library and do some reading. You'll find plenty of books on the subject.

No, you don't have to be a high earner to do this, nor do you have to forego all enjoyment for 30-40 years, but you DO have to start early, avoid debt, live below your means, and be very conscious in your choices.

 

[tarheel618]

As a teacher, all I'm going to say to the comments on teaching, summer vacation, etc. is that the general public is poorly informed on just how teachers are paid -- and most of the people who have the most to say are the most poorly informed. Teaching is a unique job that's difficult to compare to other careers; it has its own perks and its own detractors.

Now, about retirement:

OP, there's no reason you'd need to put in 42 years to reach a teacher pension. Something's very "off" in your math. The reality, however, is that the majority of teachers do not reach their pensions. 3 out of 5 leave the profession within five years, and few put in the years to "max out" their pensions.

Even with a pension, you need to put money away in a 401K as well, and you need to work towards owning a paid-for home. You can't count on a pension to be "everything" in your retirement years.

And for a worker with an average or above salary, whether you have a pension or not, retirement is very possible. Jobs that offer pensions tend to pay the least, but they make retirement seem easier because the program is "automatic" -- that is, the money is deducted from the paycheck each month, and the employee can't avoid saving. Quit whining and investigate your options. Check out these boards (and more):

AARP.org
RetireOnYourTerms.org
MrMoneyMustache.com
EarlyRetirementExtreme.com
BoggleHeads.com

Or go to the library and do some reading. You'll find plenty of books on the subject.

No, you don't have to be a high earner to do this, nor do you have to forego all enjoyment for 30-40 years, but you DO have to start early, avoid debt, live below your means, and be very conscious in your choices.

Maybe the OP went into teaching late and is figuring 42 years of work 30 years until full pension???--- scratch that I don't understand the math either

 

[IDoDis]

What age do you get to retire? The retirement age for Social Security keeps rising. While your retirement is guaranteed, not so for Social Security.

I can retire in two years after 25 years, but I am going to hang on until I reach 30 years which will net a little more per month and will allow more time to save. After 25 years the monthly amount is only $3600/ mo before taxes. Newer teachers have to wait a minimum of 30 years (or age + years of service = 80) to get retirement. SS comes several years after I retire.