Teaching is a dynamic profession shaped by individual, social, and systemic factors. Understanding the factors influencing teachers’ professional identity is critical for fostering their development and retention. Socioeconomic contexts and reflective practices are pivotal in shaping teachers’ self-concept and effectiveness. Teachers face complex challenges in today’s rapidly changing educational landscape, including resource disparities and evolving societal expectations. These pressures highlight the need for deeper insights into how socioeconomic and reflective dimensions affect teachers’ professional growth. This study explores the socioeconomic perspectives influencing teachers’ professional identity and the role of reflective practices in fostering their development. Synthesising existing literature underscores the impact of education, training, work environments, professional relationships, job security, and social status on shaping teacher identities. The reflective practitioner model, proposed by Donald A. Schön, is analysed for its relevance to continuous professional growth. The study employs a comprehensive literature review methodology, utilising academic databases such as Scopus, Web of Science, Google Scholar, and Consensus to identify relevant peer-reviewed articles, books, and reports published between 2020 and 2024. Through thematic analysis and critical evaluation, recurring patterns were identified, emphasising the interplay between socioeconomic factors and reflective practices. From the synthesised literature, the findings reveal that supportive work environments and equitable compensation significantly enhance job satisfaction and professional commitment. Furthermore, reflective practices like reflection-in-action and reflection-on-action are crucial for fostering adaptive teaching strategies and professional growth. This paper highlights the intricate interdependence of these influences, offering practical insights for policymakers, educators, and institutions to enhance teacher preparation and retention. Further research is recommended to explore the longitudinal impacts of socioeconomic factors and reflective practices on teacher retention and effectiveness, particularly in resource-constrained settings.