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 Assets

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

6 Source: Federal Reserve and Horace Mann calculationshttps:// 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 *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 investment options Financial success Responsibility to save falls solely on employees- Not saving enough Access to plan is confusing without support- Less than 5% of young educators participating Lack of saving and low participation - Driving towards being ill-prepared for retirement Trend towards self-service design Complicating the process Disconnecting younger educators Reducing 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 goals Help 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.