SALT LAKE CITY (ABC4 News) – The Utah Foundation released a report Thursday on teacher retirement plans in Utah and found that, when compared with neighboring states, Utah has one of the most generous plans — but prospective teachers have no idea.
Shawn Teigen is the lead researcher on the report and said that teachers have a “great” governmental benefit, but prospective teachers simply don’t know about it and may, therefore, choose another profession.
He said Utah plans, “Allow people to retire with more than 80% of their annual salary if you include social security. And, unlike all of our other mountain states, Utah doesn’t have a required employee contribution.”
Back in 2011, teacher retirements or pensions were lowered, but they were also given the option between a 401k and a hybrid pension.
Teigen explained, “The problem is that most teachers don’t make it to 35 years and a lot of teachers don’t even make it to 5 years. So for people who maybe aren’t going to be career teachers, it’s more beneficial to pick that 401k plan that you can take with you when you move careers.”
He recommends all teachers thoroughly research their retirement options before selecting a final plan.
Find the Utah Foundation’s full report here.