Key Takeaways:

• Planning for retirement is the key to your financial future.
• Prioritizing good saving habits can keep you consistent in your financial growth.
• Using a 403(b) savings plan allows you to make tax-deferred contributions.
• Never underestimate the power of compound interest.

As an educator, you’re in a constant state of planning. From daily lesson plans to development plans for your students, you know how much it pays to know the road ahead and be ready for what happens.

The same can be said for your career. And, more specifically, your retirement.

Calculating your future financial needs

When it comes to your financial retirement, there are two things you need to know:

• The total savings you may need by the time you want to retire.
• How much you need to be saving to get there. 

Equitable has a retirement calculator that can help you answer these questions, as well as figure out how far you can get with the amount you are currently saving or plan to start saving. 

Make the most of your tax-deferred options

Employer-sponsored retirement plans, such as a 403(b) for educators or a 401(k) for private sector employees, are an excellent savings option. You may also have access to an individual retirement account (IRA). With these options, your savings are tax deferred. That means by saving for tomorrow, you can lower your annual income taxes today. 

Make the most of your tax-deferred options

Employer-sponsored retirement plans, such as a 403(b) for educators or a 401(k) for private sector employees, are an excellent savings option. You may also have access to an individual retirement account (IRA). With these options, your savings are tax deferred. That means by saving for tomorrow, you can lower your annual income taxes today. 

Tips on saving for retirement

Like any goal, good habits are the foundation of a solid, long-term plan. Consider these tips for a financially healthy retirement:

• Start now – When it comes to saving for retirement, time is both on your side and extremely critical. Don’t wait. Start today.
• Start small – When it comes to getting started, any amount of money is better than doing nothing. Money may feel tight, but even a few dollars now can make a big difference over a long period of time. 
• Make saving automatic – Use payroll deductions from your paycheck or your checking account. If it’s automatic, you’ll never forget to do it.  
• Save regularly – Just like brushing your teeth, make saving for retirement a regular habit.
• Be realistic – Financial growth is a marathon, not a sprint. Don’t celebrate early gains or let short-term losses deter you. You’re playing the long game for financial success. 
• Keep it rolling – If you change jobs, you can usually keep your retirement funds in your former employer's plan. You can also roll it over into your new employer's plan or an individual retirement account (IRA).
• Don’t dip – It may be tempting to pull funds from your retirement savings when you get in a pinch, but try to keep dipping into those funds off limits. It can cost you in the long run.  

You can play catch up

A 403(b) retirement plan allows you to play catch up. The yearly maximum you can contribute to a 403(b) is $22,500 a year. If you’re over age 50, you can make catch-up contributions of an additional $7,500 every year.

Learn more about an Equitable Financial 403(b) plan

At Equitable, we love teachers, and we have a proud history of supporting educators. That’s why we’re here to support your financial future at every stage of your career. Whether you are just starting out or playing catch up, we can help. We offer an Equitable Financial 403(b) plan, which is a tax-deferred savings plan for educators. You can contribute pre-tax money to a 403(b) plan through payroll deductions. We can help you choose from a variety of investments offered to help your money grow on a tax-deferred basis until you need it for retirement. 

Contributions to a 403(b) plan can also lower the federal income taxes withheld from your paycheck each pay period, which reduces your annual taxable income.

Learn more about us and how we can help you get started and put a plan in place for your financial future. 

Disclosures:

This informational and educational article does not offer or constitute and should not be relied upon as investment or financial advice, and the advice of your own such professionals should take precedence over any information provided in this article. Equitable Advisors, LLC and its associates and affiliates do not provide tax, accounting or legal advice or services.

Products funding group retirement plans are issued by Equitable Financial Life Insurance Company (Equitable Financial) NY, NY.

Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY), Equitable Financial Life Insurance Company of America (Equitable America), an AZ stock company, and Equitable Distributors, LLC. Equitable Advisors is the brand name of Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI and TN).