Educator Retirement

Understanding Retirement Realities for Educators and District Employees

Many educators and district employees are likely to face a significant drop in income when they retire, even if they are covered under a pension plan. For example, in California, teachers typically retire at about 60% of their pension, which amounts to a starting salary. This reduction underscores the importance of planning for the financial future. Those who invest time in preparing for retirement can look forward to enjoying their long-awaited dreams and pursuits. However, for those who don’t plan ahead, retirement might mean working longer years, scaling back lifestyles, spending less, or even relying on family for support. Recognizing and preparing for these financial changes is essential for a comfortable and secure retirement.

feeling uncertain about where your retirement planning stands, consider these key questions…

• Are you saving enough for your tomorrow?
• Will your retirement money outlive you?
• Is your investment safe from market turbulence?
• What percentage of your final salary will you be living on?
• Is there a gap between the amount you’ve saved for retirement and the amount that you want and need?
• Do you want to compare your existing TSA/403(b)s with other options, or combine them to get a better rate of return?

Personalized Pension Reviews

Many of our clients don’t get an opportunity to meet with the pension’s retirement specialist until they are six months to a year from retiring. Usually, an employee need assistance years before retiring to help calculate the optimal time to retire and ways to fill their pension gap. There are standard pension workshops, however they often involve large group settings, offering broad information that might not be relevant to everyone. Additionally, they tend to promote cookie cutter solutions it as the primary option versus an individualized plan for an employee based on their needs and specific desires in retirement.

At Veda Insurance Services, we take a different approach. We assign a dedicated pension/retirement specialist to work with you individually. This specialist will thoroughly review your current plan, ensuring you have a clear understanding of what to expect at retirement. We’ll discuss your anticipated retirement salary, tax implications, pension gap, and provide a transparent comparison of all available options to bridge this gap, aiming to maximize your retirement income. If you already have a plan, we’ll review it together to ensure you fully understand its workings. Should you be unhappy with its performance, we’re here to assist in exploring alternative options that could offer a better return.

Know your TSA/403(b) & Insurance Options

Along with our extensive experience in collaborating with your district’s third-party administrator (TPA), we at Veda Insurance Services have partnerships with several TSA and Insurance providers approved by your district. Our expertise lies in meticulously comparing and contrasting all the available plans, aiding you in making a well-informed decision about where to invest your supplemental retirement funds. We place a strong emphasis on educating our clients about essential financial concepts, including Passive vs. Active investments, Fixed and Variable options, Mutual Funds, and FIA Annuities. Our goal is to empower you with the knowledge and confidence to select an investment that meets your financial needs securely.

Don’t hesitate to set up a personalized consultation with one of our pension specialists today and explore your retirement options!