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.

2

Financial success is important to educators

An educator’s financial success is dependent on goals and actions that adapt to the changes in their life.

4

New educator

Established educator

Preparing to retire

Retirement goals

Time

Asse

ts

5

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

7

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

9

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.

10

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

11

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

12

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

13

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)

14

Educators look out for their students’ futures. They deserve someone to look out for theirs.