salary


Are teachers better off in conservative or liberal states at retirement?
By National Hall of Fame Teacher Alan Haskvitz
http://www.edu-cyberpg.com/Ringleaders/al.html

Most public school districts have a retirement plan that is based on your income as an educator. Some base it on your highest salary and some of the best three years. Obviously, salaries change and so do the politics and so the chart I have made reflects those salaries from the National Education Association (NEA) and are fairly current.

The data does not reflect the living costs in each state. The cost of living certainly is going to eat up more of your pay check to live in some areas of California over those in Nebraska. However, this study was not designed with that as a criteria because some teachers may want to retire in another state which may have a higher or lower cost of living. Thus, if you are looking for good salary and, perhaps, willing to move, this chart may be of significance knowing that in the next few years there is going to be a lot of jobs as the Baby Boomers move into retirement and leave significant openings for new hires. Some states may require a few more courses to gain your accreditation in that state, but those courses are tax deductible and the cost of the move may be deducible as well. It is best to check with your tax person.

The first consideration is to ask yourself does it pay (income wise) overall to work in a conservative state. Well, not really. Here is what A GALLUP poll lists as the most conservative states. I have added that states average and starting salary from the NEA site as well. However, most salary data is a couple of years old. Nevertheless, the average percentages should remain similar.

Here is the salary information for the most conservative states (starting-average)

Alabama
$36,198
$47,949
North Dakota
$32,019
$47,344
Wyoming
$43,269
$56,775
Mississippi
$31,184
$41,814
Utah
$33,081
$49,393
Oklahoma
$31,606
$44,373
Idaho
$31,159
$49,734
Louisiana
$38,655
$51,381
Arkansas
$32,691
$46,631
Nebraska
$30,844
$48,997

Here is the salary information for the most liberal states (starting-average)

Massachusetts
$40,600
$72,334
Oregon
$33,549
$57,612
Vermont
$35,541
$52,526
Delaware
$39,338
$59,679
Connecticut
$42,924
$69,397
Washington
$36,335
$52,234
Rhode Island
$39,196
$63,474
Hawaii
$41,027
$54,300
New York
$43,839
$75,279
California
$41,259
$69,324
New Jersey
$48,631
$68,797
Maine
$31,835
$48,430

Average starting salary conservative states $34,00* average salary $48,200*
Average starting salary liberal states $39,900* average salary $61,000*

Retirement differences

Although these figures may no longer be accurate, they do provide insight into the averages a teacher may expect. As for retirement numbers, studies have shown that when a teacher retires after 30 years their retirement is typically in the 60 and 75 percent of her final salary range.

It does not take long to see that those working in the liberal states not only make more money to start, but are going to make significantly more when retiring. A teacher working in a conservative state who retires with an above average salary of $50,000 should get a retirement check of $30,000. A teacher in a liberal state making a slightly below average of $60,000 would get $36,000 based on 60 percent. In California, for example, the majority of teachers are getting in the range of $55,000 to $70,000 a year.

I did not factor in Social Security as the Windfall Elimination Factor can deprive teachers of the full payment they should have received while working jobs that require Social Security deductions. The Windfall Elimination can eliminate 66 percent of their retirement from Social Security even though they have paid for it over the years. That is why teachers who have been in other occupations for a significant amount of time might want to look at how much they are going to lose by becoming a teacher in those states where the Windfall is in play. It could cost them thousands of dollars a month.

There is no way to factor in cost of living for various cities. However, there is a site that helps you with this http://money.cnn.com/calculator/pf/cost-of-living/. I compared Bismark, North Dakota to Los Angeles, California. The cost of living in Bismark was $50,000 and for Los Angeles $67,000. The average salary for a teacher in North Dakota was about $47,000. The average salary for a teacher in Los Angeles was $59,000. A budgeting teacher in Bismark could break even, but the Los Angeles teacher needs to find a second income. However, when it is time to retire, the California teacher is going to have $36,000 coming in and the North Dakota teacher under $30,000. Essentially, $500 a month more and the truth of the matter is that it could be far more with $100,000 teacher salaries in California for teachers with over 30 years of experience becoming commonplace.

Bottom Line

If you are free to live anywhere, willing to adopt to new surroundings and requirements, you might want to consider working in a liberal state and retiring in a conservative one. Indeed, some states don’t tax Social Security and others don’t have an income tax. It is a difficult choice to move from the known to the unknown. The best advise I can give is that after you have done your homework, after you have made your decision to start a new life in a new state remember that wherever you go, there you are so know yourself.
* Figures are rounded off and may not be current.

Retirement Guide for Teachers

By Alan Haskvitz, national motivational speaker

http://en.wikipedia.org/wiki/Alan_Haskvitz

For more free links about business go to

http://www.reacheverychild.com/feature/teacher_law.html#3

Horace Mann Companies

https://www.horacemann.com/annuities/

Test your retirement knowledge

http://www.govexec.com/dailyfed/1206/121506rp.htm

Retirement Resource

Links

Includes financial decisions, legal concerns, and aging and health links

http://www.nea.org/retired/tools/retirement.html

Retirement IQ test

http://moneycentral.msn.com/investor/calcs/n_rothq/main.asp

Earning test for early retirees

http://www.fairmark.com/retirement/socsec/earnings-test.htm

Test your knowledge on retirement

http://www.msnbc.msn.com/id/13089081/

Life expectancy calculator

http://moneycentral.msn.com/investor/calcs/n_expect/main.asp

Estimating Your Retirement Income Needs

http://www.aicpa.org/financialliteracy/retirement.asp

Steps in Retirement Planning

http://www.urbanext.uiuc.edu/ww1/14-02.html

Ten Steps to Retirement

http://money.cnn.com/2004/10/05/retirement/kansas_10stepssuccess/index.htm

Before you accept an early retirement package

http://retireplan.about.com/od/caniretire/bb/retire_early.htm

Ten questions to ask before retiring

http://retireplan.about.com/od/lifestyles/tp/retirementandme.htm

Steps to take when you are 60

http://articles.moneycentral.msn.com/RetirementandWills/CreateaPlan/12StepsYouMustTakeAtAge60.aspx

Printables for how much you need to retire and estimating expenses

http://www.extension.iastate.edu/finances/personal/retirement/first_steps.htm

Tax Benefits for Teachers

http://www.irs.gov/pub/irs-pdf/p970.pdf

Women and Retirement

http://www.nea.org/money/pf050912.html

California Retired

Teachers Website

Regardless of what state you work in this site has excellent insights into the issues of retirement.

http://www.calrta.org/index.php

NEA retirement site

http://www.nea.org/retired/index.html

The impact of Social Security on Teacher Pensions

http://www.ssa.gov/gpo-wep/gpo-wep2.htm

Social Security news

http://www.nea.org/lac/socsec/latestnews.html

Understanding Social Security Benefits

http://findarticles.com/p/articles/mi_m6280/is_n2_174/ai_12469650

Social Security Retirement Earning Table

http://www.ssa.gov/OACT/COLA/rtea.html

Teacher Salaries

http://en.wikipedia.org/wiki/Alan_Haskvitz

After five or more years of university, a well-paid position as a teacher is deserved. With this in mind, Reach Every Child has assembled the most current information concerning salaries, cost of living, and jobs available. However, due to the time it takes to collect and publish such data, most of these figures are at least three years old. Thus it is best to use this information as a starting point.

You should note the states with the highest teacher pay also have the highest cost of living. Regardless of where you work, with rising living costs, it is also a good idea to begin retirement planning. And this might be a good place to start: Horace Mann

The following sites deal with the latest teacher salary information, where to find jobs, scholarships, grants and a cost-of-living comparison by state. I have placed the rest of the information on this site:

http://www.reacheverychild.com/feature/salaries.html

It contains the following topics: Cost of living by state, education job scales, teachers pay in other countries, elementary teacher job pay, pay by state, taxes by state, salary trends and more. All free.
 
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