Benefits for Teaching

When you're a teacher, you often get asked "Why not do something that pays you a little more?" Even though they can be right to an extent, teachers get special privileges that others might not. For example, they only have to work 8-10 months out of the year and get paid annually and get paid sick days and leaves.

But what happens when you retire?

Once a public school in Michigan hires you, you’re entered into their retirement system. The system as of today helps 190,000 retirees and has distributed $3.5 billion in pension since 2010. This is a contributory pension system, which means that teachers receive lifetime monthly pensions upon retirement. You can retire at any age as long as you have 30 years of experience. These benefits rely on your years of service and average salary. For example, if you worked for 25 years and your average salary was $55,000, you would receive lifetime monthly benefits of around $1,720.

Credit to:  Financial Alliance

The past couple years, we had to go through ObamaCare, and now the Affordable Care Act. Premiums for insurance have fluctuated both ways and people can still be worried about what is to come. If you're a teacher, have no fear, for you get insurance benefits too. Some schools offer plans which would cover 100% of your medical expensive, and some are not as friendly with the percentage. Teachers in Michigan typically enter into dental and vision insurance plans. My sister, for example, only has a $5/month dental deductible. These plans very on what they can cover. Not all of them are the same.

So the next time someone asks you "Why teach?" or use the phrase "You won't get paid much", remind them of the benefits you get!

- Joe