Embed Size (px)
Citation preview
Attract and retain employees by helping
them with financial wellness education
1 PPT-00164 (12-17)
Horace Mann’s commitment
History
• Founded by two Springfield, Illinois teachers in 1945
• Offering 403(b) retirement savings programs since 1961
2
Horace Mann’s commitment
3
Commitment
• Provide educators with
affordable insurance
and retirement
solutions
• Help employees
understand their
retirement options
through workshops,
online resources and
personal consultations
Partnerships
• Partner with national and local associations to support and recognize
contributions of educators
• Sponsor DonorsChoose.org to help teachers fund out-of-pocket
classroom expenses
• Student Loan Solutions may help educators remove
or reduce student loan debt and redirect savings towards their future
Horace Mann’s commitment
4
We provide solutions to the challenges
educators face
5
We understand the issues
affecting educators and
schools…
• Student loan debt
• Out-of-pocket classroom expenses
• Retirement readiness
• Making ends meet
FOR INSTITUTIONAL USE ONLY. NOT FOR USE WITH THE PUBLIC.
Solving financial issues helps retention
Helping employees focus on their financial success can help employers
improve retention of educators.
Educator Financial Issues Effect on School Districts
• Not saving enough (or at all)
• Uncertainty about pensions &
Social Security
• Not making enough to pay off
student loan debt
• Spending own money in the
classroom
• Strains ability to attract & retain
talent
• Diminished employee morale
• Lower productivity
• Employees working later into life,
resulting in higher benefit costs
6
PPT-00126 (Rev. 6-17)
Financial Success
8
Budget Credit Protect Save
How do you spend your money?
9
Budget Credit Protect Save
Managing student loan debt
Sources: U.S. Federal Reserve, Edvisors, National Education Association, Horace Mann Educator Advisory Panel, Nov. 2017.
Student loan debt
nationwide tops
$1.4 trillion —
more than credit
card debt or auto
loans
$37,700 $1.4
Trillion 71%
Student loan debt
averages more than
$37,000 —
which can be more
than a full year’s
salary for a new
teacher ($36,141)
71% of educators agree:
“For many young teachers
today, student loan debt is
the difference between
wanting to continue to
teach and wanting to
change career paths to a
career that pays better.”
10
We can help: Student Loan Solutions
Under certain
conditions, student loan
debt can be forgiven
Repayment &
refinancing options may
help lower payments
Any savings can be
redirected toward
other financial goals
Remove Reduce Redirect
11
Horace Mann has a Student Loan Solutions team dedicated to
helping educators manage their student loan debt.
Removing student loan debt
12
Your employees may be eligible for
forgiveness if they:
• Are a full-time teacher in a Title I school
who teaches or will teach for five
consecutive years;
• Are a full-time employee in a qualifying
public service organization who makes
120 qualifying loan payments, or
• Are a Perkins or Parent Plus borrower.
We can help your employees
navigate the three federal
government loan forgiveness
programs that may remove some or
all of their student loan debt.
Teacher Loan Forgiveness Program
13
Designed for current and former classroom teachers
Qualifications
• Must teach five consecutive years in a qualifying low
income school
• Must be a new borrower after Oct. 1, 1998
Source: Federal Student Aid
Remove
Forgiveness amount = $5,000 for most teachers
Up to $17,500 for: o Special Education teachers (any grade)
o Highly qualified Secondary* math & science teachers
(*Definition of ‘secondary’ varies by state)
Qualifying loans
• Subsidized and Unsubsidized Stafford Loans
• Federal Family Education Program Loans (FFEL)
• Direct Subsidized Loans
• Direct Unsubsidized Loans
Remove
Public Service Loan Forgiveness (PSLF)
14
This program is available to all full-time public service employees
After program completion, the amount forgiven = remaining loan balance
120 qualifying
payments…
…in qualifying
repayment plans…
…on Direct Loans… …while working for a
qualifying employer…
…and apply for PSLF.
Start
Source: Federal Student Aid
See how it works… $88,000 in debt eliminated and approximately $20,000 in retirement savings gained
Reduce Loan
Payments
403(b) Investments
Retention & Confidence
Financial Success
Meet Kate
Meet
Kate
Age: 24 AGI: $30,000
Beginning Student Loan Debt
Total: $50,000
Monthly Payments: $347/mo
for 300 months
Retirement Savings: $0/mo
Income-based
Repayments
Old Loan Payment:
$347/mo
New Loan Payment:
$99/mo
Save for
the future
Old Investment/mo: $0
New Investment/mo:
$100/mo
Adjusted Loan Payment:
$89/mo
Continue
teaching
Continue teaching:
10 years while
making 120 payments
Continue investing:
$100+5% annually
Submit PSLF eligibility form
Goals
achieved
Age: 34
Debt eliminated:
$88,000+
Total saved for retirement:
Approximately $20,000+
403(b) investments assume 5% annual earnings and no withdrawals. Debt eliminated includes interest.
Results are hypothetical for illustrative purposes only and do not reflect the performance of any specific investment. 15
16
• Establish good credit
• Charge what you can afford
• Limit number of cards
Credit cards
Credit score
17
• Credit Scores range from 300 to 850
• Affects borrowing power
• Pay bills on time
18
Insurance
19
Budget Credit Protect Save
Auto Insurance
20
Home/Renters Insurance
21
Life Insurance
22
Pay yourself first
23
Budget Credit Protect Save
24
$10 smoothie and side
25
What happens with a $5 smoothie
and a side instead?
26
$223,285 smoothie and side
Each investor started with $0. Each investor contributes $150 a month to start and increases the
contribution each year by 6 percent. A 5 percent rate of return is assumed.
Results at age 65
State Teachers’ Retirement System
Do you know how your State
Teachers’ Retirement System
works?
Can you fill in the gap to save
for retirement?
There are a number of ways to
save for retirement.
403(b) for the educational community
29
Tax deferred
Taxes are payable when amounts are withdrawn
Can only withdraw money:
o upon reaching age 59½;
o if severed from employment;
o in case of disability; or
o in case of certain hardships (if allowed by the plan document)
10% penalty tax for early withdrawal
Roth 403(b) for the educational community
30
After tax
Designed for retirement
Taxes/withdrawals:
o Withdrawals of contributions may be tax free.
o Withdrawals of earnings tax free if over 59½ and have had the Roth
403(b) for five years.
• You can take out the money you put in any time.
• No income tax or penalty tax on earnings after 59½ on money in
an account for five years.
Roth IRA
31
DonorsChoose.org
Helping you get the classroom resources you need
PPT-00194 (10-17)
Out-of-pocket classroom spending
33
Sources: Scholastic Teacher & Principal School Report: Equity in Education Survey (2016)
Infographic: http://www.scholastic.com/teacherprincipalreport/Scholastic-TPSR-infographic-2.pdf
Most educators spend more than $500 a year of their own money
on classroom supplies and materials.
Put that money to work for you
34
If you invested that $500 each year for 30 years, you could save about
$40,000 in additional retirement savings.
Assumes contributions of $500 a year with 6% annual earnings. The results are hypothetical and for
illustrative purposes only and do not reflect the performance of any specific investment.
$0
$10,000
$20,000
$30,000
$40,000
$50,000
5 yrs 10 yrs 15 yrs 20 yrs 25 yrs 30 yrs
What is DonorsChoose.org?
35
• DonorsChoose.org is a nonprofit
organization that connects teachers in
need of classroom resources with
donors that want to help. These
resources help students both in and
outside of the classroom.
• We know getting the classroom
resources you need can be challenging
that’s why we’re a national sponsor of
DonorsChoose.org.
Does it work?
36
Since 2000, DonorsChoose.org has
enabled the funding of more than 907,000
classroom projects benefiting more than
22.6 million students.
These projects have brought in more than
$536 million in resources to public school
classrooms.
On average, 70% of projects posted to
DonorsChoose.org are funded.
Source: DonorsChoose.org
How Horace Mann helps
37
• Horace Mann agents around the country
have brought the DonorsChoose.org story to
the schools they serve.
• Horace Mann and our agents have donated
more than $4 million since 2011.
o More than 43,000 projects funded,
impacting 1.4 million students
• Schools served by Horace Mann
representatives have received more than
$250 million in funding to date.
How does it work?
38
Who is eligible to submit project requests?
39
• Full-time classroom teachers at public
schools (who spend more than 75% of
each workday with students)
• Other full-time, front-line educators at
public schools (nurses, guidance
counselors, etc. who spend more than
75% of their workday with students)
Helping students outside of the classroom
• Student Life Essentials campaign is a new
project option
• Helps meets students’ most basic needs
• Connects teachers in need of essential items
for their students with donors that want to help
• Warmth, Care and Hunger project requests
o Hygiene products
o Clothing or winter apparel
o Meals to send home with your students
o Visitors to your classroom to care for your
students
40
Education is not a student’s only need. There are also essential needs.
What happens after you submit a project?
41 For complete rules, visit DonorsChoose.org
Once a project is funded,
DonorsChoose.org orders the
materials, ships them to the school
and collects a thank you package
for the donors.
Once it’s posted, donors can visit the site and choose to
help fund the project.
DonorsChoose.org volunteers will
review your project and post it on the
site.
Questions?
42 For institutional use only.
Thank you for your interest
43
Schedule a no-cost educational workshop for your employees.
Jack Danielson
Horace Mann - Regional Executive
Ph: 530-521-8714
Email: [email protected]
