Navigating a realistic retirement system is complex. While teachers focus on the needs of their students, they may overlook critical complications in a traditional retirement system. By working with a retirement professional, it is possible to limit financial downsides in retirement.
The Shortcomings in the Retirement System
The traditional retirement system is not always enough for the needs of many American teachers. Social Security payments in retirement are modest and Americans must supplement them with a 401(k) plan or other retirement solutions. Unfortunately, the average American does not save as much in a retirement account as they may need during retirement.
Employers do not always offer a 401(k) plan and an IRA may seem complex to many individuals. Since American teachers must navigate their retirement plans without assistance from their employers, it may seem daunting to start a new retirement account.
Problems with Teacher Pensions
Despite the flaws in a traditional retirement system, many teachers may assume they have limited risks. Since teachers may have a pension plan available through their school district, they may overlook potential problems within the pension plan or their retirement plan.
A critical problem associated with teacher pensions in recent years is the level of risk. According to The Brookings Institute, teacher pension plans are taking large risks in investments on behalf of teachers. That may impact the payments teachers receive when they retire.
The risks associated with the methods used for investment in a teacher pension plan are not the only concern associated with pensions. Teachers must meet specific standards to qualify for a pension. A teacher may need to work for a specific number of years to qualify for a pension. The amount they receive in retirement may also differ based on income level and years of experience at the time of retirement.
Ana Fajardo Provides Retirement Services to Teachers
Ana Fajardo offers retirement services to teachers to assist with the complexities of a comprehensive retirement strategy. She evaluates a teacher’s expectations of a pension plan, Social Security, and other sources of income in retirement to determine if a current plan is appropriate for the needs of the individual.
After evaluating the situation, Ana Fajardo may offer recommendations for a teacher based on his or her specific needs and concerns. She may recommend a strategy for saving and investing in an IRA or other retirement accounts. Due to the growing level of risk in pension plans for teachers, she focuses on developing a balanced portfolio with low-risk solutions. She works with teachers to develop a retirement plan that considers their personal risk tolerance, long-term goals, and current financial situation.
Ana Fajardo recognizes that teachers face unique risks in retirement. Her services work around the needs of teachers and recognize the flaws in a retirement system that includes a pension plan. By working with teachers to address specific goals in retirement, she develops a personalized plan to ensure that teachers are able to retire in comfort.
