Do current state pension plans ensure a comfortable retirement for most teachers?
“Insufficient: How State Pension Plans Leave Teachers With Inadequate Retirement Savings” establishes a framework to compare teacher retirement plans against an “adequate” annual retirement savings threshold. After defining those thresholds, the paper measures how the typical defined benefit (DB) plan covering public school teachers stacks up.
The authors find that the typical teacher pension plan provides only a small group of long-serving veteran teachers with adequate benefits. To afford a comfortable retirement, teachers who fall short of the adequacy targets will have to work longer, save more in their personal accounts, or rely on other forms of income in their retirement years.