Can Minnesota Teachers Retire Early?
No matter what age you are, as a teacher, you are always planning. You plan for your daily lessons. You plan to prepare your room. You plan seating charts. But… are you planning for yourself, too?
It is never too early to think about your future. Preparing for retirement, especially for Minnesota educators, can feel like a daunting task. But Gretchen Rehm Financial can help guide you on this journey.
When Can I Retire?
Most working adults think about this question. But when you have dedicated your life to educating others, it can become a complex mathematical equation just to figure out when you are able to retire!
According to the Minnesota Teachers Retirement Association (TRA), the precise date is somewhat up to you. Each age bracket comes pros and cons.
“Normal retirement age for TRA members first hired prior to July 1, 1989, is age 65 with less than 30 years of allowable service, and age 62 with 30 years or more of allowable service,” reads the TRA website. “For TRA members first hired July 1, 1989, or after, the TRA normal retirement age is 66.”
If you are hoping to exit your teaching career prior to your 60s, you can take some careful steps now to help reach your goals - no matter when you decide to hang up your teaching hat.
Tips for a Teacher’s Early Retirement
By doing some smart planning now - even if you are only a handful of years away - you can save for the future you want. Focused programs, sensible saving, and smartly budgeting your “golden years” will leave you with more financial flexibility, down the road.
Here are some suggestions to help have a smooth, early retirement:
1. Keep a Nest Egg
At any age, it is smart to squirrel away some nuts for winter. You never know when you will need that rainy day fund, but with retirement it will become even more crucial that you have a financial safety net.
Try to set aside money each paycheck. You will need that money for life’s unexpected bumps, but also to be more secure once you’re retired on a fixed income.
2. Calculate Your Retired Life Budget
Understanding the reality of your future expenses will go a long way in understanding just how much you need for retirement.
Every situation is unique, but ask yourself questions such as:
Will I have housing costs?
Do I have a pension or other retirement plan? Are there penalties for drawing early?
What other monthly bills will I have in retirement?
What kind of discretionary spending do I want to have?
Having a solid grasp of the realistic figures for your retired years will help you plan for the money you will need. This article includes more tips for setting up your household budget.
3. Consult a Professional
The very best advice I can give you is to schedule an appointment with a financial professional. Every single person has a different financial situation. No matter what age you are today, planning for your retirement years is still possible.
Schedule an appointment today with our team, and we can analyze your specific situation and tailor an individualized plan to fit your goals. Early retirement is possible, even for teachers in Minnesota! But it does take some planning ahead.
Yes, You Can Retire Early
No one can decide the best life path for you, but you! Anything is possible with the right plan in place.
However, this doesn’t mean you have to wait until your Social Security benefits kick in to enjoy retired life. Schedule an appointment online, and I will be happy to review your individual situation. Together, we can plan for your personal goals, create a more flexible financial future, and pinpoint an age that makes the most sense for you to retire from teaching!
The Lincoln Investment Companies and its representatives are not affiliated with the Minnesota Teachers Retirement Association (TRA) ; and TRA does not sponsor, authorize or endorse the retirement educational services described in this or other communications of Lincoln Investment.
