Retirement Planning: What Single Teachers Need to Know

As a single teacher, you're not just shaping young minds – you're also responsible for crafting your financial future. Sound daunting? It doesn't have to be. Let's explore how you can build a secure retirement that honors your dedication to education while protecting your independence.

The Independence Factor: Building Your Safety Net

Remember that emergency fund your students keep in their piggy banks? As a single educator, you need a grown-up version – and then some. Without a partner's income to fall back on, your retirement strategy needs to be rock-solid. While your State Teacher Retirement System (STRS) provides a foundation, think of it as just your first lesson plan – there's much more to cover.

The Social Security Surprise Many Teachers Don't See Coming

Here's a pop quiz: did you know that about 40% of public school teachers don't qualify for Social Security benefits? If you're in this group, it's like missing a crucial chapter in your retirement story. As a single teacher, you can't count on a spouse's benefits to fill this gap, making it essential to understand your state's policies and adjust your savings strategy accordingly.

Healthcare: Planning for the Final Bell

Just as you maintain a substitute teacher folder, you need a solid healthcare backup plan. Without a partner's insurance coverage, consider this: contributing to a Personal Healthcare fund isn't just an option – it's a vital investment in your future well-being.

Beyond the Classroom: Estate Planning Essentials

You've spent years helping students plan for their futures – but have you planned for your own legacy? As a single teacher, your estate planning needs special attention. Think of it as writing your final lesson plan – one that ensures your life's work and assets benefit the people or causes you care about most.

The Long-Term Care Conversation

Remember how you tell your students to think ahead? It's time to take your own advice. As a single educator, considering long-term care insurance isn't just practical – it's crucial. Think of it as your personal teaching assistant for the golden years, there to support you when you need it most.

Making Up for Lost Time: Catch-Up Contributions

If retirement is approaching faster than a classroom of students heading to recess, here's some good news: in 2025, the 403 (b) contribution limit is $23,500.  If you are 50+,  you can save an extra $7,500 in 2023, 2024, and 2025. Those aged 60 to 63 can contribute an additional $11,250 in 2025 in place of the $7,500 catch-up contribution. Think of it as extra credit for your retirement grade.

What’s Next?

Educators are natural planners. Why not apply those same skills to your retirement strategy? Start by reviewing your current retirement benefits, understanding your Social Security status, and considering additional savings vehicles. Your future self – the one who's done with grading papers forever – will thank you. 

Curious about working with ValuTeachers? We're looking for mission-driven people to join our team as retirement educators to help more educators and school employees retire with financial dignity. We'd love to meet you, click here to set up a quick chat!