Guest post from across the Pond: What Retirement Planning Can Do for Female Teachers?

Considering the higher life expectancy rates, retirees might have to save enough funds to cover their living costs for up to 25 years or more. Approximately a quarter of all women over the age of 67 will touch the 95-year mark, while an average woman is expected to live for about 88 years

Especially in light of recent legislation that has altered the Social Security landscape, a career in education presents both unusual planning challenges and significant pension benefits. Turn your service years into long-term financial security by using the checklist below.

• Social Security coverage: Teachers’ FICA taxes are still not withheld in around one-third of states. You would be eligible for Social Security based solely on your covered earnings record (40 credits) if you taught in both covered and non-covered districts. 
• No more drops in WEP/GPO: On January 5, 2025, President Biden signed the Social Security Fairness Act (H.R. 82), which eliminated the Government Pension Offset and Windfall Elimination Provision. The Social Security payment is now made in full to instructors, especially if they meet the eligibility requirements with certain specific adjustments that took effect during the spring of 2025.

1. Map out your income timeline

Request benefit estimates for several different retirement dates for the Teacher Pension (TRS). States use different formulas; some combine a “Rule of 80/85,” while others only base payments on average salaries and service years.

Request benefit estimates for several different retirement dates for the Teacher Pension (TRS). States use different formulas; some combine a “Rule of 80/85,” while others only base payments on average salaries and service years.

hich eliminated the Government Pension Offset and Windfall Elimination Provision. The Social Security payment is now made in full to instructors, especially if they meet the eligibility requirements with certain specific adjustments that took effect during the spring of 2025.

• Start budgeting around 20-, 30-, and 35-year retirements for evaluating the effect of inflation and health-related expenses that build over the years.

2. Boost personal savings early—and often

It is important to make the most use of the tax-exempt funds that you might have, as even a huge pension fails to compensate for your overall salary.
In 2025, it is possible to defer almost $23,500 into a 403(b) or 457(b) plan. You may be able to defer an additional $7,500 ONLY if you are 50 years or older. Furthermore, a 457(b) account can be leveraged as an emergency bridge since the withdrawals are penalty-free after you leave the district.

To diversify your investments and prepare for future tax brackets, you can add a regular or Roth IRA for a maximum of $7,000 or $8,000 after reaching the age of 50. Finally, another great option to prepare for future taxes is to opt for a Health Savings Account (HSA) if you get enrolled in a higher deductible health plan. The perk here? This year, you can save $4,300 on personal contributions and up to $8,550 on family contributions, with a $1,000 catch-up after you reach 55.

The remaining amount can be used as payments towards long-term care or as Medicare premiums, which are tax-free. These strategic options can help you bridge the health insurance gap, enabling a financially secure post-retirement life. It’s advisable to consult a retirement specialist to determine whether purchasing service credits or funding an additional source of retirement income would be more beneficial for your specific situation.

3. Consider decades while investing, not just semesters

The vulnerability you might face is outliving your nest egg if you have a safety-first portfolio. Calculate the amount of growth you intend to have, and allocate funds across diverse possibilities, especially based on risk level, and rebalance at least once every year or after you achieve a major life milestone (eg, inheritance, marriage, or divorce).

4. Review career breaks and pay gaps

Women often step away from the workforce to care for their families, which can lower their service years and pension credits. Ask your TRS about “service‑purchase” options to buy back lost years and restart contributions as soon as you return.

5. Plan for health‑care and long‑term‑care costs

It is essential to note that Medicare provides coverage only for short stays in skilled nursing facility care. Consider a hybrid life or long-term care policy, or long-term care insurance, while you are still in good health.

6. Time Social Security wisely

Since WEP/GPO does not affect benefits anymore, it still pays 8% more per year for delaying Social Security until age 67 at your full retirement age. Merge claiming with your pension start date, and required minimum distributions to smooth the taxes into the plan and cash flow.

7. Layer multiple income streams

Substitute teaching, tutoring, adjunct work, or educational consulting can add purpose and delay portfolio withdrawals. Rental property or curriculum royalties can provide additional buffers. 

8. Work with a specialist who understands educators 

You can plan for a successful retirement working alongside a financial planner who has vast expertise in handling public sector pensions and WEP/ GPO 2025. These specialists can frame different scenarios for perfect retirement planning, coordinate survivor benefits, optimize pensions alongside other options, and strategize a tax-efficient withdrawal plan.

Final thought 

Now that you have invested so many years across the educational sector, it is the right time to plan a strong and secure retirement future. Having the best pension strategy at your side and with the help of expert financial advisors, you can explore ways to start savings besides the Social Security protocols.