Information for Members

So Many International Schools WITHOUT Retirement Plans!

February 28, 2021


It is on all international school teachers’ minds. How am I helping to contribute to my future now (for when I retire/stop working) as a current teacher in the international school community?

Not that everything is all worry-free if you just stayed teaching and earning money in your home country, but living and teaching abroad can sound pretty risky to some people (maybe even many people).

If you are working at an international school that has an amazingly high salary with equally amazing benefits, then that is one story. Even if this type of school doesn’t actually offer a nice retirement plan benefit, you still have the opportunity to save a lot of money.

But if you are working at an international school and receiving a salary that helps you ‘just get by’ along with very average benefits (for example, there is not a retirement plan benefit that is on offer to you), then international school educators need to consider if the experience working at this type of international school is a good fit for their future plans.

Does an international school that doesn’t offer a retirement or pension plan benefit immediately equate to being a bad decision for your future? Not necessarily. If you are only planning on staying there for one to two years, then it shouldn’t make that big of a difference. If you receiving a high salary along with paid housing, not having an established pension plan benefit shouldn’t make that big of a difference because your savings potential is high. Hopefully, you have a laser-focused investment plan for all of that money saved.

But for those of us that are not so smart with money and don’t have the expertise to manage our own savings/retirement plan, it can definitely not bit a good fit to accept a teaching job at a school that doesn’t offer retirement plan benefits.

We did a keyword search on our Comment Search feature and found a number of comments related to international schools that don’t offer a retirement or pension plan benefit.

We found 26 comments when we searched the short phrase: “No retirement
Here are a few of those comments:

Amman Baccalaureate School (16) Total comments
No retirement plan right now is on offer as a benefit.”

Canadian International School (Tokyo) (93) Total comments
No retirement plan for teachers.”

International School Ho Chi Minh City (93) Total comments
“Unfortunately there is no retirement plan.”

We also searched the short phrase “No pension” and found 85 comments.
Here are a few of those comments:

Zhuhai International School (121) Total comments
“There are no pension plans from the school (included in the contract) although if you wished to establish one the office staff would be able to assist you in establishing one.”

Varee Chiang Mai International School (117) Total comments
“There is no pension provision, but an end-of-contract gratuity is awarded in lieu.”

Stamford American International School (307) Total comments
“There is no pension, but this means you can invest your money as you see fit. There is a 15% allowance that is paid monthly with your salary. This is “in lieu of CPF” which is paid for Singaporeans and PR.”

On the more positive side, we had a quick search for this key phrase “matching” (30 comments) hoping to find comments related to international schools that match the pension plan contribution of the teachers.  
Here are a few of those comments:

American International School Vienna (81) Total comments
“Under the newest contract, teachers now have 10% matching for retirement fund commencing at first year. Certainly better if you’re there short-term, though perhaps not if you’d plan to stay 30 years.”

Hong Kong International School (151) Total comments
“I spend a lot of money here because I love to do eat out a lot, travel, and there are many things to do in the city. With that being said, I save about 1,300 USD a month, not counting the school severance/matching scheme which is another 1,300 USD.”

Cairo American College (196) Total comments
“The pay continues to be good. There is now a higher matching for retirement. The cost of living is still very inexpensive in Egypt.”

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Blogs of International Teachers

Blogs for international school teachers: “Cliff Jumping: Risk-taking and New Beginnings” (From a retired international educator)

June 3, 2014


Our 37th blog that we would like to highlight is called “Cliff Jumping: Risk-taking and New Beginnings”  Check out the blog entries of this retired international school teacher that currently is back living in her home country (United States).

Screen Shot 2014-06-03 at 9.59.04 PM

Screen Shot 2014-06-03 at 9.59.03 PM

A few entries that we would like to highlight:

Cracked

“I’ve slowly dealt with the red tape of health insurance, car purchase, phone decisions, computer, internet, cable, condo painting/remodel/furnishing, and getting my household shipment through the delays of NY homeland security exams, Mpls. customs, and condo association regulations. Each step has been fraught with exasperation.  Why am I so thin-skinned, so impatient? How could I deal with daily power rationing, hideous traffic, and oppressive heat in India, and not be able to accept the processes I must go through here more easily? I feel as though I’ve been in a time warp for 40 years, and I don’t know how to do things in this new age. I’ve lost my confidence…”

Are you a veteran international school teacher thinking about retiring soon?  We have a very popular article on our blog that discusses this issue.  An International School Community member shares her experiences about working for 30+ years in international schools and what her plan is for her retirement.   It is called ‘Where do international teachers go when they retire and what do they do?‘. Check it out here.

We also have a few other articles on our blog related to this topic of going back to your home country and feeling a bit of reverse culture shock:
Culture Shock and Misplaced Normal (An int’l school teacher’s experience in Tanzania)
Going home for the holidays: No one cares about your international life
The summer vacation dilemma: To go home or to not go home…that is the question!

Elegy to my Beloved…Profession

“I have had the privilege of enjoying a 40-year career in the most exciting and satisfying field there could be: international education. It’s a vocation that young and old should consider, whether at the beginning of their working years, midway through as a ‘reset’, or after retirement. If you’re already a teacher and you’re bored, worried about getting ahead financially, tired of overcrowded classrooms, or wanting to see the world, this is for you. Take a leave of absence or sabbatical, or attend a recruiting fair, and take a job at an overseas school with an American or western curriculum. You’ll earn more money, experience more adventures, and probably never look back. If you’re young and unsure of your direction, love working with kids, feel curious about other cultures, and want to make a difference, this is also for you. And if you’ve already got a pension, going overseas could be icing on the cake. Or if you can’t find a job– get your teaching certification, and head on out…”

If you don’t already have a pension and want to know more about what pension plans are like at other international schools, take a moment to check out one of our 40 comment topics on the school profile pages in the Benefits Information section.  It is called: Pension plan details.  Right now there are 320 comments in this comment topic. Here are just a few:

“No pension plan, hopefully the school will address this issue in the future. (Although the school gives a bonus of one monthly pay for every year served at the school after 3 years and this may be considered retirement, but technically it isn’t.)” – Western International School of Shanghai (Shanghai, China) – 54 Comments

“The school provides no pension, but 9% is deducted from the monthly paycheck to pay into IPS, which is sort of like Social Security. If a teacher retires in Paraguay, he or she will receive money through IPS. So for the most part, saving for retirement is in the hands of the foreign hires; they must have the discipline to do it themselves.” – American School of Asuncion (Asuncion, Paraguay) – 58 Comments

“There is a pension plan that is in accordance to the labor law. For every year you work you are to receive 12 days pay. After your 6th year you will get 24 days pay. (roughly 2 weeks pay for the first 5 years and a month for every year after 5). Now for clarification: Your pension (called indemnity) is to be paid at the end of service at your highest pay, according to the labor law. However, the school does not follow this and will pay it to you yearly when you return in September. This seems like a good plan until you realize after 5 years how much money you lose out on.” – American Creativity Academy (Hawalli, Kuwait) – 31 Comments

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If you are an international school teacher and would like your blog highlighted on International School Community contact us here.

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