Retirement for early educators: Challenges and possibilities
Child care—the care, education, and support in the growth and development of our youngest residents—currently hangs in the balance. Although their work is both skilled and valuable, early educators have been and continue to be among the most poorly compensated workers in the country, with some of the lowest wages and typically without access to benefits. While those working in the early-childhood sector have been vocal in their interest and need for health care, paid time off, and retirement plans, less is known about the practical policy options for providing these types of benefits to early educators. Through conversations with 11 local, state, and national leaders and innovators at the intersection of child care and labor, I identify the challenges—and the possibilities—for providing retirement benefits to early educators, given our fragmented child-care “system.” Understanding the challenges and the barriers on the individual and organizational levels, as well as the potential on the institutional level, may help us begin to take stock of the landscape for funding and delivering retirement plans and for creating pathways to turn these “bad jobs” into “good jobs.”
Key Findings
- Retirement benefits remain top of mind among child-care businesses and early educators but are hard to prioritize in the face of a first-order need to make a living wage.
- Both child-care businesses and individual early educators require an influx of financial capital and resources to navigate retirement. Child-care businesses may need financial capital to provide retirement plan options and/or to provide match incentives; they also may benefit from coaching and support in incorporating retirement plans into their budgets. Individual early educators may need financial capital to be able to contribute to a retirement plan; they also may benefit from coaching and support in navigating retirement plan options.
- The limited examples of efforts to establish retirement benefits for early educators rely heavily on motivation, interest, and innovative ideas from the ground up, as well as an infusion of capital and resources from the top down.
- Unions may hold some potential to advocate for retirement benefits, but, as in the case of Massachusetts, bargaining would be most successful in the context of statewide legislation that provides a pathway for the implementation of retirement vehicles, given the prevalence of private businesses disconnected from public payment platforms. Unlike their K-12 counterparts, most child-care workers are not unionized, and many remain unconnected to union-organizing bodies.
- Broader policy measures to provide retirement to a larger segment of the working class, inclusive of those working in the child-care sector, also remain a promising tactic. These secure savings plans allow for a larger coalition of advocates and stakeholders to voice concern and need for gig workers, small-business owners, and care workers, which all encompass child-care workers.