After careers focused on preparing students for the future, many K-12 educators find the prospect of their approaching retirements akin to standing on the edge of a cliff. Sure, you may admire the view, but you’d love a little help navigating those next steps.

For today’s K-12 faculty and staff members, the anticipation of starting this next phase of life can be tempered with concerns and uncertainty about future financial well-being. That’s why teachers and other school employees may benefit from talking with a retirement specialist — a financial advisor dedicated to helping you refine and advance your retirement goals. With their assistance, you may gain clarity around your long-term objectives and the next steps to take in order to advance them.

Let’s take a look at where and how you might find the relationship helpful.

You want to start — or jump-start — your long-term savings plan

Setting aside money is an important step to take toward financial stability in retirement. Plus, the sooner you save, the more money you can have on hand to invest in your future. Alas, according to the Department of Labor (DOL), only half of Americans¹ have calculated how much they need to save for retirement.

Many Texans recognize that, when it comes to preparing for the future, our public school employees deserve extra support and insights, including a statewide pension fund, known as the Teacher Retirement System of Texas (TRS). There are other tools and services, too. For example, TRS provides members with retirement calculators² to help estimate their future monthly income and expenses.

Yet, since TRS pensions are not adjusted for inflation,³ you may discover a desire to explore other financial solutions and strategies.

That’s a common point where a retirement specialist can help.

Yes, a financial advisor who is familiar with retirement options unique to Texas K-12 professionals, can assist you with calculating your needs and help you develop a personalized strategy.

» Tip: Wondering what the recent federal changes to the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) might mean for Texas K-12 employees like you? See our article, What Teachers Want to Know About Retirement.

You want to make more informed financial decisions

Making contributions to your TRS account is a good first step to planning for your retirement. But it’s not the only action you can take. You may want to diversify your efforts and look for other options as you build your retirement fund.

According to the U.S. Census Bureau (USCB), teachers often have salaries that lag behind⁴ those in other professions. That means retiring on only a teacher's pension may not provide the retirement lifestyle you have in mind. Supplementing your pension with 403(b) or 457(b) plans may allow additional retirement funds to grow.

But retirement isn’t the only financial goal you may have. Perhaps you want to develop a strategy to build generational wealth, learn how to invest your money, or explore other financial solutions.

No matter what educational background you have, financial terms, concepts and options can be dizzying. Retirement specialists come to the table with investing insights and knowledge — as well as the ability to provide extensive research and market data.

Ever sensitive to your specific retirement strategy, they can help you look beyond your retirement goals at other financial concerns, from saving for a large purchase to funding a side hustle. A financial advisor can also walk you through your savings and investment options, including asset diversification strategies that are unique to your needs, goals, time horizon and objectives.

You seek help staying on track financially as life changes

At first glance, saving for retirement seems pretty simple: Start early and use all the strategies and solutions available to you. But life brings changes, which may mean adjusting your short- and long-term financial goals.

Throughout your career, life events such as getting married, having children, getting divorced, changing jobs or experiencing the death of a spouse may impact decisions related to your finances and future.

Of course, economic fluctuations and inflation can also impact progress toward your goals. Those challenges, however, need not bring your efforts to a screeching halt. Instead, think of them as a reminder to spend a little time considering options, strategies and solutions.

A financial advisor who specializes in serving K-12 educators can be a sounding board, someone with whom you can explore obstacles and opportunities over the years. They can help you explore budgeting strategies, manage investments, and even preserve wealth. Most importantly, they can customize their approach based on you and your family’s needs.

The takeaway

The complexity of financial and retirement decisions — as well as the limited time most educators have available for retirement planning — can feel daunting.

However, by talking through your specific short- and long-term needs with a financial advisor who is sensitive to the unique challenges and opportunities that Texas K-12 professionals face, you may be able to move your current retirement plan forward with more confidence.

Are you a Texas educator ready to explore how a retirement specialist can help you? The RBFCU Retirement Program has financial advisors familiar with the specific needs and challenges facing Texas teachers and school district employees. We’d love to talk!