Post on 13-Dec-2015
Preparing all school employees for their financial futures
Marita Zuraitis – President and CEO, Horace Mann
Unique Perspective
Horace Mann was founded by two Springfield, Illinois educators 70 years ago and we’ve been helping teachers with their financial success ever since.
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An educator’s financial success is dependent on goals and actions that adapt to the changes in their life.
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New educator
Established educator
Preparing to retire
Retirement goals
Time
Asse
ts
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Issues affecting educators
Educators
• Financial literacy• Student loan debt• Out-of-pocket
classroom expenses• Retirement prep• Asset protection
School districts
• School funding• Teacher longevity• Employee morale• Pension plan
reductions
Help educators focus on their financial success
6Source: https://www.debt.org/students/, Federal Reserve and Horace Mann calculations
Educator issue: Student loan debt is mounting
• Student loan debt has surpassed both credit card and auto loan debt
• 15% of student loans default
• Average student loan debt for a 2014 graduate is nearing $30,000
• $1.2 trillion in student debt outstanding nationwide
College debt causing Millennials to delay life milestones
• Question career choice
• Ability to save for the future
• More dependent on parents and family
• Delaying marriage and home buying
• Interest on outstanding debt of $1.2T at 6.58% represents $78B in lost savings
Solution: Helping educators “find” money in Virginia
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Horace Mann agent leads Student Loan Forgiveness Workshop
Agent does individual counseling session with educator
Virginia teacher, who originally went to law school and now is a teacher, will have $200,000 in student loan debt forgiven after teaching ten years
Educator issue: Teachers spend $500 a year on supplies
8*Sources: 2013 NSSEA Retail Market Awareness Study, Horace Mann calculations
• 92 percent of teachers spend their own money on classroom supplies
• 85 percent of teachers buy instructional materials for their students
• Average spend is $500 per teacher per year, which adds up to $1.6B total
If teachers invested that $500 a year at 6% over 30 years, it could translate into
roughly $126 billion in savings, or
$40,000 in additional retirement savings per
teacher.
Solution: Helping educators “find” money in Virginia
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Horace Mann agent conducts DonorsChoose.org Workshop at local school
Agent does an individual counseling session with educator
Teacher posts DonorsChoose.org project
Project is funded and educator uses fewer personal resources-Greenbrier Elementary teacher recently received stability balls
This year, more than 700 DonorsChoose.org projects, valued at nearly $400,000, have been completed in Virginia schools served by a Horace Mann agent.
Educator issue: Educators are not adequately prepared for retirement… and they know it.
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0%20%40%60%80% 70%
27%
55%43%
Overall, how confident are you that you (and your spouse) will have enough money to live
comfortably throughout your retirement years?
1994 2014
*Sources: Employee Benefit Research Institute and Greenwald & Associates, 2015 Retirement Confidence Survey
• Fewer than one in five teachers will work a full career and reach the pension plan’s normal retirement age.
• Only 48% of workers have tried to calculate what they need to save for retirement.
• Only 35% of workers talked with a professional financial advisor about retirement planning.
Emerging trends impacting retirement plans
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Personalized advice
from trusted advisor
Multiple investm
ent options
Financial
success
Responsibility to save falls solely on employees-Not saving enoughAccess to plan is confusing without support-Less than 5% of young educators participatingLack of saving and low participation-Driving towards being ill-prepared for retirement
Trend towards self-service designComplicating the process
Disconnecting younger educatorsReducing participation
Virginia’s Retirement System - real time, real issues with long term impacts on educators
Overcoming concerns to reach long-term goals
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Educators• Financial literacy• Student loan debt• Out-of-pocket
classroom expenses
• Retirement prep• Asset protection
Address concerns that keep them from investing in their long-term financial success.
Long-term financial goalsHelp save dollars from
budgeting guidance Overcome
district issues
We support educators and organizations like yours
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Horace Mann now sponsoring VASS Aspiring Superintendent Program
• Awarding scholarships for candidates to go through program
• Presenting at the Virginia School Board Association (VSBA) Conference (Nov. 19)