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Public school employees want more information about retirement planning from their employers, with barely half considering themselves knowledgeable about their retirement investment options.
That finding came from a survey of 400 public school employees conducted by the Center for State and Local Government Excellence and Greenwald & Associates. The survey asked the employees their views on their benefits, how they believe their benefits compare to colleagues, and their familiarity with mutual funds and annuities.
"When asked about their perceptions regarding retirement and employee benefits, just over half of respondents (51%) agreed that people who retire from jobs in K-12 education are generally able to live comfortably in retirement," according to the report. "Slightly fewer agreed that they are knowledgeable about the retirement investment options offered by their employer (48%), and 37% believe that their employer does a good job of preparing them for retirement. However, 44% of respondents also agreed that it is difficult for them to negotiate or raise concerns about their employee benefits, and 40% agreed that they are overwhelmed by the retirement plan options offered to them."
The survey found that an overwhelming majority, or 73% of those surveyed, are interested in getting more information from their employer about their retirement plan or retirement planning. Many of the employees indicated they are specifically interested in learning about tax rules governing their retirement plan, and understanding the costs and fees associated with their plan.
Nearly 40% of the employees said they are turning to a friend or family member who isn't a financial professional for information, according to the study. Nearly 34% rely on a financial professional associated with their employer, and 32% are going directly to their employer.
The survey results found people in the K-12 public workforce are passionate about their jobs and workplace satisfaction, but the overall findings comes with a warning during the COVID-19 pandemic.
"[I]f significant cuts were made to their salary, (defined benefit) retirement plan, or health insurance, many would leave, which could impact schools' abilities to compete with the private sector to recruit and retain a talented workforce," according to the report.
The report found nearly a third said they would definitely leave, and nearly another third said they would probably leave if their salary were cut. Nearly half specifically said they would leave if their defined benefit retirement plan or health insurance were cut.
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Nate Robson
Nate Robson is the U.S. Supreme Court and regulatory editor. Contact him at [email protected]. On Twitter: @Nate_Robson1.
