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? asked in Education & ReferenceTeaching · 5 years ago

Teaching Abroad: How should I set up a retirement account?

My ESL China job search is beginning to get into the Z visa application phase. I have now narrowed my search to one language school that is offering me the best salary and benefits. I currently plan on this being a lifetime career where I teach in China for a year, come back to the United States for 6 months, and I go back to work in China for a year. That would be my rinse-and-repeat career path.

However, I have now suddenly thought, what about my retirement plans? What do I do once I hit 60 years old and can no longer physically wrestle around with the kindergartners? Since I would be paying taxes in China, I would not receive social security here once I get to retirement age.

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  • Anonymous
    5 years ago

    You have a couple of things you need to look into. When you work overseas, you are exempt from US income taxes up to a certain amount of income, BUT you have to stay out of the country a certain number of days. I know people doing this, and they can only come back to the states for a few days each year. Spending 6 month would mean you would have to pay taxes. You'd also be off-cycle for the academic year in China.

    Retirement is a problem for TESL teachers. I know someone who worked 30 years in Japan, but is now back in the states working part-time at a grocery store because he has no retirement. You need to look into continuing payments into Social Security while you are overseas.

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