Perceptions of Retirement Affect Career Commitment: The Mediating Role of Retirement System Satisfaction for Two Teacher Age Groups

Abstract

This study investigated a sample of California elementary, intermediate, and high school employed teachers (N = 247) to assess the effects of retirement perceptions on career commitment among teachers who are in different age groupings. Using path analysis, the influence of five retirement perceptions variables was examined: concerns about retirement benefits, understanding of the retirement system, perceived need for system change, control over the retirement plan, and satisfaction with current salary. The results indicated that the pattern of results differed for younger and older teachers. For the younger (age 21–45) group, concerns about retirement benefits (such as losing or reducing benefits through geographic mobility) and control over the retirement plan had significant, large, and direct effects on career commitment. For the older (age 46+) group, retirement variables had a significant effect on career commitment via the mediator of satisfaction with the retirement system. Given these findings, for younger teachers, strategies might focus on providing greater control over the retirement plan, such as in offering choice in how their retirement monies are invested. Older teachers need to feel safe about retirement in the sense of being satisfied with the system and its benefits to commit to their jobs.

Notes

^a Group difference is significant at p < .05, *p < .05.