New Website to Help Florida's School Employees Save for Retirement

There once was a time when retirement planning meant saving to purchase that vacation home on the beach or a trip to an exotic location. But due to the recent changes to the Florida Retirement System and the uncertainty of Social Security, Florida school employees’ grand plans may be unrealistic if they aren’t taking additional steps to plan for life after school.

With retirement lasting an average of 30 years or more, the Independent Benefits Council (IBC) urges school employees to be smart and to take proactive measures to secure a sound financial future for themselves and their family.

IBC is a not-for-profit organization formed in 2007 by four of Florida's leading education groups – the Florida Education Association, the Florida Association of School Administrators, the Florida School Boards Associations and the Florida Association of District School Superintendents.

On the heels of National Save for Retirement Week, held earlier in October, IBC is reminding school employees about the importance of early planning for retirement. Florida school employees need to take control of their future, and IBC is pleased to offer them tools and resources to get started with the launch of School Employee Saver.

This site provides school employees with the steps they can take to find out how much they need to live comfortably after retirement and how to choose the right plan to help them get there. Even if retirement is many years away, the long-term benefits of saving have never been more powerful.

One of the greatest savings tools around is the 403(b) plan. A 403(b) is a long-term savings plan for public school employees. It allows them to contribute a portion of their salary to an employer-sponsored plan that can supplement the benefits they are entitled to through the Florida Retirement System.

There are many reasons to participate in a 403(b) plan, including significant tax advantages:

• Contributions to a 403(b) plan through payroll reductions are tax-deductible, which means school employees can place money into the 403(b) plan without having to pay any taxes on it now.
• When they contribute to their 403(b) plan, their investment can earn income through tax-deferred appreciation, meaning they do not have to pay taxes on dividends, interest and capital gains when they are earned.
• Once school employees retire, they pay taxes on benefit payouts, at which point they may be in a lower tax bracket.
• Florida school employees can secure their financial future and fill in the gap left by the Florida Retirement System and Social Security.