North Carolina Teachers Save Big with Pre-Tax Retirement

Did you know that North Carolina public school teachers have been saving on taxes since 1982—without even realizing it? 💡

If you’re a teacher, every paycheck you receive already includes a hidden benefit that lowers your tax bill today and builds your retirement nest egg for tomorrow. It’s called pre-tax retirement contributions, and it’s one of the most overlooked advantages teachers have when it comes to financial planning.

In this article, we’ll break down how it works, why it matters, and how “Future You” will thank you. And if you missed our recent Retirement Ready live session, don’t worry — the full replay is linked below.

What Are Pre-Tax Contributions?

Since July 1, 1982, contributions to the Teachers’ and State Employees’ Retirement System (TSERS) have been tax-deferred.

That means the money you contribute (the mandatory 6% of your paycheck) is taken out before your taxable income is calculated.

✅ Result: You pay less in taxes today.
✅ Bonus: Your contributions grow over time, and you don’t feel the full pinch in your take-home pay.

Present You vs. Future You

Think of it as a partnership between Present You and Future You:

• Present You → Saves on taxes every paycheck because of reduced taxable income.
  
  

• Future You → Retires with a larger nest egg, since those contributions (plus growth) are waiting when you leave the classroom.
  
  

When you finally withdraw that money, yes, you’ll pay taxes. But for most retirees, the tax bracket in retirement is lower than during their working years. That means you keep more of your hard-earned money over the long run.

Why It Matters

Many teachers look at their paycheck and wonder, “Where does it all go?”

Here’s the truth: your paycheck is already working for you in ways you don’t see. By being tax-deferred, your contributions:

• Lower your tax bill every year you work.
  
  

• Allow more money to grow for decades.
  
  

• Give Future You a stronger, more secure retirement.
  
  

It’s a financial win-win.

Watch the Replay

We covered this topic in detail during our recent Retirement Ready live session. If you missed it, you can catch the full replay here: 

👉 [Watch the Replay Now]

In the session, you’ll hear:

• Real-life examples of how much tax-deferred savings can add up.
  
  

• Common questions NC teachers ask about accessing their money.
  
  

• Simple strategies to make the most of your retirement contributions.
  
  

Final Thoughts

Every paycheck, Present You is already giving Future You a gift. By understanding how pre-tax contributions work, you’ll see that retirement planning isn’t just about the future — it’s about saving money today too.

So if you’ve ever thought, “I don’t have enough to save for retirement,” remember: you’re already doing it — and you’ve been doing it since day one.

💡 Want help building a personalized retirement roadmap?
👉 Schedule a complimentary 15-minute call with me here: https://bit.ly/4440F9l