Teachers, federal employees and tech workers each get a benefits package with its own rules, and most of the costly mistakes come from not knowing them: a teacher who never uses the 457(b), a federal worker who drops health coverage in retirement by accident, an engineer surprised by the tax on a vest. The right advisor already knows your rulebook. Fee-only planners charge a median $300 an hour or $2,000 for a one-time plan, and many of these questions fit in either.
Teachers: 403(b), 457(b) and a pension
Two savings plans, two limits
Many school districts offer a 403(b), and some also offer a governmental 457(b). For 2026 the limit for each is $24,500, and the 457(b) limit is separate from the 403(b). A teacher under 50 with both plans can defer up to $49,000 in total. From 50 there’s an $8,000 catch-up, or $11,250 at ages 60 to 63, and the 457(b) has its own catch-up in the three years before the plan’s normal retirement age.
The 457(b) has another advantage. Withdrawals from a governmental 457(b) aren’t subject to the 10% additional tax for early distributions, except on money rolled in from another plan or IRA. For a teacher who plans to stop working before 59½, that can make it the account to draw from first.
A good advisor also reviews what’s inside your 403(b). A district’s list of providers can include insurance companies offering annuities as well as fund companies, and an annuity can pay the person who sells it a commission. Ask any advisor how they’re paid before you take their advice on which provider to use.
The pension and Social Security
About 40% of public K-12 teachers, roughly 1.2 million, work in jobs not covered by Social Security, concentrated in 15 states and the District of Columbia, according to a 2019 Bellwether analysis. For them the state pension is the main retirement income, and the rules on vesting, buying service credit and survivor options carry a lot of weight.
If you have Social Security from other work, or through a spouse, old estimates may be wrong. The Social Security Fairness Act repealed the Windfall Elimination Provision and the Government Pension Offset for benefits payable for months after December 2023. Plans built on the old reductions need to be rerun.
The public graph’s pension planning specialty covers lump-sum and survivor elections, and federal, military and corporate pensions. It doesn’t track teacher pensions as a separate category, so ask any advisor whether they’ve worked with your state’s system before.
Federal employees: FERS and the TSP
FERS pays retirement benefits from three sources: a basic annuity, Social Security and the Thrift Savings Plan.
The annuity. It’s generally 1% of your high-3 average salary for each year of service, or 1.1% if you retire at 62 or older with at least 20 years. On a $100,000 high-3 with 30 years, that’s $30,000 a year retiring at 61, or $33,000 at 62. A good advisor runs the retirement date against that step.
The TSP match. Your agency puts in 1% of basic pay automatically, then matches your own contributions dollar for dollar on the first 3% of pay and 50 cents on the dollar for the next 2%. Contribute 5% and the agency adds 5%. Contributing less leaves part of your pay on the table.
The survivor election. At retirement, a full survivor annuity pays your spouse 50% of your annuity and reduces yours by 10%. A partial one pays 25% for a 5% reduction. Your spouse must consent to anything less than the full benefit. The choice is hard to change later, which is why it deserves a model, not a guess.
Health coverage. To keep Federal Employees Health Benefits in retirement, you generally must have been continuously enrolled for the five years of service before you retire. An advisor should check this before you set a date.
Advisors in the pension planning specialty list FERS and CSRS coordination as part of the work. Browse the pension planning specialists list in the public graph.
Tech workers: RSUs
RSUs are generally taxed when they vest, as wages. Employers usually withhold federal tax at a flat 22%, or 37% on supplemental wages above $1 million in a year. If your top bracket is 32% or 35%, a large vest can leave a real bill at filing time.
The bigger risk is concentration. Vests add up, and holding every share leaves much of your net worth in your employer’s stock. A good advisor sets a rule for each vest, sell or keep, and plans the tax and the cash before April. Options and ESPP shares bring their own rules.
Our guide to a financial advisor for RSUs and stock options covers each kind of equity in detail. In the public graph, start with advisors for tech employees or the equity compensation specialty or the list of equity compensation specialists.
Questions to ask an advisor
| If you’re a | Ask | A good answer includes |
|---|---|---|
| Teacher | Should I use the 457(b), the 403(b) or both? | Limits for both, and which to draw first if you retire early |
| Teacher | Have you worked with my state’s pension system? | Specific clients or elections, not a general yes |
| Federal employee | When should I retire, given the 1.1% rule at 62? | Annuity amounts compared by retirement date |
| Federal employee | Which survivor annuity should we choose? | Your spouse’s income under each option, for life |
| Tech worker | How much tax will my next vest leave me owing? | An estimate against your bracket, not just the 22% withheld |
| Anyone | How are you paid, in dollars a year? | One figure, and no commissions on annuities or insurance |
What it costs
US medians from prices firms publish on their own websites
Source: Wellspent fee report
Many of these are single decisions: which plan to use, when to retire, which survivor option to elect. Hourly or a one-time plan covers them without an ongoing fee. Tech workers with regular vests often want help every year, which is where an ongoing or flat fee fits. Advisors who manage investments for a percentage of assets charge a median 1% a year.
How to find one
Use the specialty that matches your rulebook: pension planning for teachers and federal employees, equity compensation for tech workers, and retirement planning or tax planning for the rest. Every record in the public graph shows how the advisor is paid and what they focus on.
Ask two or three advisors the question for your job from the table above. The one who answers with your numbers, not a general rule, is the one to hire.