You are here
Scrambling the Nest Egg: How Well Do Teachers Understand their Pensions and What Do They Think about Alternative Pension Structures?
This paper addresses two questions: How well do teachers understand their current pension plans? And, what do they think about alternative plan structures? The data come from administrative records and a 2006 survey of teachers in Washington State. The results suggest Washington’s teachers are fairly knowledgeable about their pensions, though new entrants and mid-career teachers appear to be less knowledgeable than veteran teachers. As for teachers’ preferences for plan structure, the survey suggests that when it comes to investing additional retirement savings, a plurality of teachers favor defined contribution plans which offer more portability and choice, but more risk than traditional defined benefit plans. Perhaps unsurprisingly, all else equal, teachers newer to the profession are more likely than veteran teachers to favor a defined contribution structure.
Keywords: Pension, Novice Teachers, Retirement
Citation: Michael DeArmond, Dan Goldhaber (2010). Scrambling the Nest Egg: How Well Do Teachers Understand their Pensions and What Do They Think about Alternative Pension Structures?. CALDER Working Paper No. 51
You May Also Be Interested In
The Impact of a $10,000 Bonus on Special Education Teacher Shortages in Hawai‘i
Roddy Theobald, Zeyu Xu, Allison Gilmour, Lisa Lachlan-Hache, Liz Bettini, Nathan Jones
The Long and Winding Road: Mapping the College and Employment Pathways to Teacher Education Program Completion in Washington State
Dan Goldhaber, John Krieg, Stephanie Liddle, Roddy Theobald
What Do Teacher Job Postings Tell Us about School Hiring Needs and Equity?
Dan Goldhaber, Grace Falken, Roddy Theobald