As New Jersey teachers head back into the classroom this fall, most are focused on setting up bulletin boards, organizing class lists, and preparing for the rush of a new year. But there’s something else that deserves your attention, your 403(b) retirement plan.
Whether you’re just starting out or nearing retirement, your 403(b) could be the difference between scraping by and retiring comfortably. In New Jersey, where pension reform has changed the rules of the game, this supplemental savings tool is more critical than ever.
1. NJ Pensions Aren’t the Safety Net They Used to Be
If you’re relying solely on the Teachers' Pension and Annuity Fund (TPAF), here’s a wake-up call: the state removed the automatic cost-of-living adjustment (COLA) in 2011. That means your pension income won’t automatically rise with inflation. Add in rising healthcare costs in retirement, and you could be looking at a shrinking income over time.
Your 403(b) helps bridge that gap. It’s not a luxury, it’s a necessity!
2. The Earlier in the School Year, the Better
Starting or increasing your 403(b) contributions now gives your money a full academic year to grow, plus those small paycheck deductions tend to be easier to adjust to early in the year than mid-year. A $50–$100 increase in contributions now can have a significant impact later, especially with compounding interest.
3. Most NJ Teachers Were Sold a 403(b), Not Advised on One
Let’s be honest, most 403(b) plans in NJ school districts are sold by third-party vendors who focus more on commissions than strategy. You might be in high-fee annuities, unaware of your options, or worse, not contributing at all.
A fee audit and plan review can save you thousands over the course of your career. Don't settle for a plan that works for the salesperson. Make sure it works for you.
4. Teaching Is Your Career — Retirement Planning Is Ours
Most teachers don’t realize they can work with an independent advisor who understands the NJ pension system and their district’s 403(b) plan options. From choosing the right provider to setting up the plan that works for you, you don’t have to navigate it alone.
5. Big Life Moments Deserve a Financial Check-In
Are you buying a house, getting married, or planning a career change? These are all moments to reassess your financial plan. Your 403(b) plays a key role in your long-term goals, and it should reflect what’s happening in your life, not what you set up five years ago and forgot about.
As you settle into your classroom routines, take 30 minutes to do something for your future self. Review your 403(b). Ask the right questions. Take control of your financial plan because no one else is going to do it for you.
At Canonico Wealth Management, we specialize in helping New Jersey teachers take full advantage of their 403(b) plans. Gwen has worked with educators across the state and knows the system inside and out.
Let’s make this your smartest school year yet.
Schedule a free consultation with us today.