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June 09, 2005
Workplace Issues - Do You Have A Plan?
Hello all,
Something happened to me last night that has become a frequent, yet unwelcome part of my life. It was about 3 a.m. and suddenly I shot up in bed, scared and sweating. In my dream, I had been older, still teaching for a living, but about to retire. I had already given notice at my job, and was looking forward to my golden years lazing on the beach. Then, as I opened my checkbook to look at my balance, I realized that I couldn't possibly retire. I simply hadn't saved enough over the years to quit working.
Ay!
It's true that most ESL teachers don't make a great living, but we accept that because we love what we do. But what does that mean for our futures?
In my previous post, I outlined some ideas to help get you on a budget, but obviously that isn't enough. In order to retire comfortably, we need to plan, save and invest in order to be prepared for that big day.
If you work in the states, you probably don't have these worries, but if you have worked in a foreign land for most of your career, you likely don't have a 401K or retirement plan! And considering the average salary, you're probably not socking it away unless you're lucky enough to work in a high-paying area.
What will you do?
I talked to a few people this week, and the responses that I heard were interesting. Some told me that they would simply work until they dropped (not recommended!), while others told me that they planned to retire in their current country because the living expenses were so much lower than they could expect in the U.S. While I lean in that direction myself, I'm still searching for other options.
It would make financial sense to return to the U.S. once I get serious about retirement, earn more money, and put myself on a plan.
But oh how I would miss those afternoon siestas and the ecstatic shrills of children on Saturdays as they bang a piñata to death!
How many of you wake up in the middle of the night with thoughts like these? Are we setting ourselves up for a dismal future by doing what we love now? Will we ever be able to retire, or will we be teaching phrasal verbs way into our 90's?
Will everything be okay?
Talk to me! If you have plans in motion, I'd love to hear about them. If you think this is an issue that doesn't matter, tell me why. If you are intimately familiar with my types of dreams, let's share.
Until next time,
Michelle
Posted by msimmons at June 9, 2005 04:52 PM
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Comments
Hi Michelle,
I've just discovered your blog. And yes I too worry about the future. I've been teaching EFL for about 25 years - freelance for some years now, ever since it seemed a better option than a job that was leading nowhere. I love my work, but it hasn't provided me with financial security. My "plan" is to go on working until I drop. I'm an EU citizen with a tiny private pension plan and will be entitled to a small state pension when I finally do decide to retire - maybe around the age of 70. It certainly won't be enough to live on unless I substantially increase my social security contributions for the next 11 years. This is not really an option as I'm already finding it a bit difficult to make ends meet. Just need a brilliant business idea, find a corner of the EFL market that no one else has noticed, maybe. Any ideas? Well, that's it. Would just would like to say thanks for the down-to-earth, good sense comments on your blog.
Best wishes,
Catherine
Posted by: Catherine at June 7, 2005 11:17 PM
Isn't it amazing how one does not think of these things at a younger age? We tend to be so confident, full of life the world is ours.
Notwithstanding the fact that we are culturally conditioned to think of ourselves retiring at some stage in our lives, the whole issue bears real issues of insecurity arising from an advancing age and the realization that we may not be able to look after ourselves the way we do now. I think is important to identify those personal insecurities one by one and decide how we will alleviate them. The choice is always personal cos each one's notion of a secure life is entirely different. Mine is the idea of a paid up place I can call my own. Having a roof over your head you can always make do from there.
The truth is that for all those that have spent their lives anywhere else than Europe or the States going back will not be an easy thing. I have been back to Europe from Africa, it's been six months now, specifically to find out if I would ever want to come back here. No thanks. It is now as alien to me as Africa was twenty years ago when I first got there.
Now I think of it maybe it wouldn't be a bad idea if a bunch of tefl teachers pulled their recources together, got a farm somewhere in Africa, built it up in a sort of a retirement village. Hell why not?
Posted by: phivos at June 8, 2005 12:12 PM
If you are domiciled in the UK but working abroad, then you are not entitled to a full state pension, unless you continue paying your National Insurance Contributions (NIC). This is allowed for and one can pay Class 3 (Voluntary contributions) whilst working abroad and this is considerably less than they would pay if they remained working in the UK. The current Class 3 contribution is £7.15 = $12.87 per week and the current weekly state pension is approximately £75 = $135 per week at age 65 for a man.
Relying on the State Pension and/or other State benefits will only do if you're happy to live on £75 a week or so.
If you want to be comfortable, well fed and have a reasonable income then you need to start a retirement plan - and do it soon, if you can afford it.
Posted by: kenneth at June 8, 2005 10:45 PM
Catherine, have you considered changing markets? I understand (I'm an outsider), that there's a lot of money to be made teaching in the Asian market.
Hope you don't mind my butting in.
Posted by: Robin at June 9, 2005 02:16 AM
