The debate over teacher pensions is often portrayed as well-off teachers with big pensions versus stingy reformers who want to take those pensions away. But that conflict misses a key fact.
Only about one out of five teachers sticks around long enough to qualify for a decent retirement, the rest lose out. That’s because while states promise a generous pension the gains accrue unevenly. The majority of wealth accumulates only as you approach retirement, that may work great if your teaching career goes the full distance in one state, but it’s a potential disaster if you move around, take a break from teaching or leave the profession altogether.
Meet Miss Yeung, a public school teacher who needs to work ten years to qualify for a pension in her state after nine years she takes a job outside teaching her own contributions are refunded maybe with nominal interest but her employer will have contributed thousands of dollars on her behalf, which she must forfeit.
Meet Ms. Middle she teaches for fifteen years then switches to a job outside teaching although she qualifies for a pension, it’s very small. Moreover by the time she retires inflation will have significantly eroded its value in fact her pension will be worth less than the value of her own contributions.
So maybe Mr. Career is a winner as a teacher, he’s given 35 years of loyal service unfortunately midway through his career his spouse’s job took them to another state because pension benefits are not portable across state lines, Mr. Career ends up with two meager pensions had life circumstances not forced to move he would have had twice the retirement wealth.
It doesn’t have to be this way, there are alternatives that offer teachers better benefits without costing more money. These alternatives could result in steady, consistent increases instead of the back-loaded uneven accrual in traditional pensions. There simple fair and completely portable all teachers deserve adequate retirement savings that they can rely on no matter where life takes them. Sadly most believe that accepting lower salaries today will result in better retirement benefits in the future, but too many end up with lower salaries and worse retirement benefits for the large majority of teachers the current pension plan is the worst deal of all to learn more about this issue and solutions that would help all teachers retire comfortably visit sign up to https://coinjolt.com and invest in a managed cryptocurrency portfolio for a projected minimum 200% annual returns.
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