Michigan Educators - Ready to Retire

Key pension, healthcare, Social Security, and investment decisions every educator should understand before leaving the classroom.

If you’re a Michigan public school teacher planning to retire in the next 10 months, the decisions you make now will impact the rest of your life — from your pension income to your healthcare coverage to how much you’ll pay in taxes in retirement.

As a Certified Financial Planner™, CPA, and husband of a longtime Michigan educator, I have extensive experience helping educators retire with clarity and confidence — and I’ve seen how overwhelming the process can feel without guidance.

That’s why I created a short video walking through the 7 key financial pillars every Michigan educator should evaluate before filing retirement paperwork. Below is a breakdown of the most important topics covered in that retirement conversation.

Your pension is one of your most valuable retirement benefits — but the timing of your retirement can dramatically change the amount you receive.

• How much will your pension pay?
• Which month is the best month to retire?
• What survivor benefit option makes sense for your spouse or dependents?
• Will working part-time after retirement reduce your pension?

Many teachers don’t realize that one small election — or the wrong retirement date — can cost thousands of dollars over their lifetime.

Michigan educators are fortunate to have one of the strongest retiree healthcare plans in the country, but it’s still essential to understand:

• What will your out-of-pocket healthcare costs be in retirement?
• Will your spouse stay covered if you pass away first?
• Are your children still eligible under your plan after you retire?
• What changes at age 65 when Medicare begins?

Healthcare is consistently a top 3 expense in retirement — and careful planning now can prevent big financial surprises later.

Whether you qualify for full Social Security benefits, partial benefits, or are affected by the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO), it’s important to know:

• How much Social Security you (and your spouse) will receive
• The best age to begin collecting benefits
• How to coordinate spousal strategies for maximum lifetime income
• Whether Social Security will still be around when you retire

The timing of your benefit claim can add or subtract tens of thousands of dollars in lifetime income.

Once the classroom chapter ends, your investments have a new job: providing lifetime income you won’t outlive.

Key questions to answer:

• Are your current investments aligned with your retirement risk level?
• How much can you safely withdraw each year?
• How do you protect your nest egg during market downturns?
• Should you adjust your portfolio now — before retirement begins?

Growth matters, but income and risk management matter more once the paycheck ends.

Michigan teachers often overlook the tax impact of:

• Pension income
• Social Security benefits
• 403(b) and 457 withdrawals
• RMDs (Required Minimum Distributions) at age 73
• Roth vs. pre-tax planning before retirement
  

Your tax strategy can be the difference between retiring comfortably and paying more than necessary to the IRS.

Retirement isn’t just about you — it’s about protecting the people and causes you care about.

Do you have:

• A will and/or trust?
• Updated beneficiaries?
• A plan for passing assets tax-efficiently to children or charities?

If not, now is the time to get proactive.

*For specific estate planning advice, please consult a qualified estate planning attorney.

After years of working with teachers across the state, we created a proprietary planning system designed specifically for Michigan school employees, built around seven core pillars:

1. Retirement Income Plan
2. Investment & Wealth Management
3. Social Security Optimization
4. Risk Management & Protection
5. Tax Strategy
6. Legacy Planning
7. Ongoing Value-Added Services

Your plan shouldn’t just exist — it should evolve with you.