Teachers Have Homework to Do for Retirement

November 23, 2010 (PLANSPONSOR.com) – New data from the ING Retirement Research Institute indicates that very few K-12 teachers (15%) have developed a formal, written financial plan.

In addition, a majority said they have put little or no effort into calculating their retirement needs, and nearly three in ten (29%) reported they have never even thought about it.  

According to a press release, very few teachers (16%) are expecting to retire earlier than age 60.  Nearly three in ten (29%) are either unsure when they can retire or believe they will not be able to retire at all.  

Roughly two-thirds of the teachers polled (68%) confirmed that they are investing in a voluntary retirement plan through their workplace (such as 403(b) plan).  Yet, of this group, over half (56%) wish they could invest more into these accounts, but for various reasons do not.  

The survey found most respondents (72%) expect to receive a traditional pension from their employer.  Of those eligible for this benefit, a majority (68%) believe it will make up at least half of their retirement income.    

However, more than half (54%) lack confidence in the reliability of that income during retirement, and more than four-in-ten (41%) don’t know how their pension benefit will be calculated.  

When asked to rank the most important issues facing Americans today, the announcement said, educators as a whole do not view financial education and literacy as a top priority for the government to address.  Still, over half (51%) believ this subject matter is important to include in a student’s curriculum.  Very few, (only 5%) think financial literacy has no place in the classroom.  

The recent study, conducted by the ING Retirement Research Institute in conjunction with market research firm Synovate, polled more than 1,000 K-12 full-time teachers between 20 and 70 years of age.  

More details are at www.ingretirementresearch.com, on the “publications” page.