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Teachers’ Knowledge and Preparedness for Retirement: Results from a Nationally Representative Teacher Survey

Author

Listed:
  • Fuchsman, Dillon

    (Sinquefield Center for Applied Economic Research, Saint Louis University)

  • McGee, Josh

    (University of Arkansas)

  • Zamarro, Gema

    (University of Arkansas)

Abstract

Adequately saving for retirement requires both planning and knowledge about available retirement savings options. Teachers participate in a complex set of different plan designs and benefit tiers, and many do not participate in Social Security. While teachers represent a large part of the public workforce, relatively little is known regarding their knowledge about and preparation for retirement. We administered a survey to a nationally representative sample of teachers through RAND’s American Teacher Panel and asked teachers about their retirement planning and their employer sponsored retirement plans. We find that while most teachers are taking steps to prepare for retirement, many teachers lack the basic retirement knowledge necessary to plan effectively. Teachers struggled to identify their plan type, how much they are contributing to their plans, retirement eligibility ages, and who contributes to Social Security. These results suggest that teacher retirement reform may not be disruptive for teachers and that better, simpler, and clearer information about teacher retirement plans would be beneficial.

Suggested Citation

  • Fuchsman, Dillon & McGee, Josh & Zamarro, Gema, 2022. "Teachers’ Knowledge and Preparedness for Retirement: Results from a Nationally Representative Teacher Survey," Working Papers 21-5, Sinquefield Center for Applied Economic Research, Saint Louis University.
    • Handle: RePEc:ris:sluecr:2021_005
    as

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    References listed on IDEAS

    as
    1. Robert M. Costrell & Josh McGee, 2019. "Cross-Subsidization of Teacher Pension Costs: The Case of California," Education Finance and Policy, MIT Press, vol. 14(2), pages 327-354, Spring.
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    More about this item

    Keywords

    teacher pensions; retirement knowledge; retirement planning;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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