Are North Carolina Teachers LOSING Money On Retirement Contributions?

If you’re a North Carolina public school teacher, you’ve probably noticed something about your paycheck: 6% is gone before you even see it.

That’s because every NC teacher is required to contribute 6% of their salary to the state retirement system. No choice. No opt-out. For many teachers, that’s $200–$300 every month — gone before payday.

And for a lot of teachers I work with, it feels like money just disappearing.

But here’s the big question: Are you really losing money — or are you investing in your future?

The Challenge Teachers Face

Teacher pay in North Carolina isn’t high to begin with. Add in housing, childcare, student loans, groceries, and rising costs — and your paycheck is already stretched thin.

Then the 6% retirement deduction comes out.

• On a $40,000 salary, that’s $2,400 a year.
  
  

• On a $55,000 salary, that’s $3,300 a year.
  
  

One teacher I spoke with told me she had to work summer school just to balance out the deduction. Another said her retirement contribution was actually larger than her car payment.

No wonder so many teachers feel like they’re losing money.

How to Make the Deduction Work for You

Here’s the truth: you can’t stop the deduction. But you can make it work better for you.

Here are four tools every North Carolina teacher should know about:

1. NC Retirement System Benefits Calculator
   – This tool shows how today’s contributions grow into tomorrow’s retirement income. Instead of money disappearing, you can see the paycheck you’re building for life.
   
   

2. 403(b) and 457 Plans
   – Many districts offer these supplemental retirement plans. They allow you to save extra with tax advantages — even lowering your taxable income today.
   
   

3. State Employees’ Credit Union (SECU)
   – SECU offers teacher-specific programs like low-interest loans and savings accounts that can help bridge the gap between paychecks.
   
   

4. Educator Discounts
   – From classroom supplies to travel, educator-only perks can save you hundreds each year — helping offset what feels like “lost” money.
   
   

Reframing the 6% Deduction

Let’s focus on the most important tool of all: the NC Retirement System Benefits Calculator.

Here’s why it’s powerful:

A teacher earning $50,000 a year with 30 years of service could retire with around $25,000 a year for life.

That’s your retirement paycheck.

So instead of thinking, “I’m losing $300 a month,” you can start thinking, “I’m buying myself a guaranteed paycheck for life.”

That shift in perspective can change the way you see your paycheck today.

Watch the Full Replay

We covered all of this — and more — in the latest episode of Retirement Ready:

👉 Replay Link: youtube.com/watch?v=hXA6tocR-ZA&list=PLXzoQDCW-CDhtL4a2XZ-03MoZaWB_kIYX&index=30

You’ll also get access to my FREE budgeting template designed specifically for North Carolina teachers. It will help you balance today’s expenses with tomorrow’s retirement goals.

Final Thoughts

You’re not losing money. You’re investing in yourself.

Yes, the 6% deduction may feel like a burden right now, especially when every dollar counts. But it’s also one of the most reliable retirement safety nets in the country.

Your future self will thank you for it.

And if you haven’t already, make sure to catch the replay of Are North Carolina Teachers LOSING Money On Retirement Contributions? — it could change the way you look at your paycheck forever.

👉 Watch the Replay Here: youtube.com/watch?v=hXA6tocR-ZA&list=PLXzoQDCW-CDhtL4a2XZ-03MoZaWB_kIYX&index=30