How can you retire early from teaching?
When I recently asked teachers for their views on their retirement, I did not expect to receive the volume of response that I did. This is clearly something that is concerning many teachers in the UK. There are many, many teachers who wish to retire early from teaching.
The new normal pension age for anyone entering the profession today is the same as their state pension age, which, for the youngest in our school communities, is 68. In the survey only two teachers wanted to work until they are 67-68, yet only 5% of teachers surveyed know that they will be able to afford to leave teaching at their ideal retirement age.
When would you ideally like to retire?
Do you know if you can afford to retire early from teaching?
If not, then you are not alone. Of the 81% of teachers who want to be retired by the age of 60, only 5% of them know that they will be able to afford to retire then. Even of those who want to retire from teaching between 61 and 64, there are only 16% who know that they can afford to leave then.
It’s just the young ones!
We could be forgiven for thinking that many of these are very young teachers who feel that they don’t need to be concerned by thoughts of retirement, however 46% of the group wishing to retire before 64 are aged 35 and over. For both this group, and the younger teachers, the sooner you start thinking about your retirement, the better. If you wish to retire early from teaching, then you may have to consider other options, as well as your teachers’ pensions. Being fully aware of the possibilities as early as possible in your life, will give you the best chance of retiring when you choose.
Retiring at 60 is now, for many, 7 or 8 years early. Retiring from teaching at 55 used to be common place, but is now 12 or 13 years before the normal pension age of many teachers. How many people will be able to afford to do that without some form of prior planning?
The main issues
With workload, increased stress and motivation causing serious concerns in the profession already, we really need to be considering our options. Many teachers cite concerns about not reaching retirement age, fearing instead that the stress of the job will cause them to die in post. Thankfully, in that event, our teachers’ pensions will provide for our dependents, but it’s not an appealing prospect is it?
Their main worries about teaching until the new retirement ages of 67 or 68, were not being physically or mentally strong enough to do this job, with 57% stating this as being a concern. Another 27% raised concerns about stress and workload with a further 15% feeling that, as an older teacher, they would be unable to give the children in their care the very best education that they deserved.
Many teachers (63%) are worried, because they are unsure about how well off they will be in retirement and this is their main concern about this stage of their life. With 42% stating that travel is their biggest dream for retirement, and another 24% wishing for a financially secure retirement, it is clear that consideration should be given now as to how to achieve these goals.
The three main questions that teachers had about their pensions were:
- When can I retire?
- How much will I get?
- What do I need to do to ensure that I can retire early?
With only 5% who know that they can retire at their chosen age, it is clear that teachers haven’t already thought about the answers to these questions.
In order to fully prepare for retirement we need to find the answers to the following questions.
- What is my ideal retirement age?
- What is my ideal retirement lifestyle?
- How much will I need to fund that retirement?
- How much am I predicted to get by my ideal retirement age?
- What can I do to make up any predicted shortfall?
By taking the time now to find the answers to these questions, you will be much better placed for a long and happy retirement. Further to that, removing the stress of thinking that you may be forced into staying in teaching longer than you want to, may also help you to enjoy your current time in teaching more.
Is it time?
If you would like to start thinking about your retirement and how well prepared you are to retire when YOU choose, then why not download my free PDF? It gives you step-by-step instructions that will help you to establish:
- your pension age
- how much your pension is worth
- the amount of state pension you will get
- how much income you are likely to need in in retirement
- your total likely retirement income
I was shocked to find out just how little my pension was predicted to pay out, so I have had to take action to allow me to retire early from teaching. Even if you discover that your pension is not going to provide you with the required level of income, all is not lost. However, it is important that you take action as soon as possible, to ensure that you can retire when you choose.
I am Eileen Adamson, a Your Money, Sorted coach, working online with UK based women, helping them to develop a better relationship with money. By gaining an understanding of how their personality affects the decisions they make, I can help them to implement changes which will allow them to feel calm, positive and confident that they are in control and making good financial decisions. I can then support them to put into place simple strategies that will allow them to manage their finances effectively on a daily basis and create a stable, secure and exciting future for themselves.