Paths to 55 — Educator Finance Tools

Compare the financial trajectory of a Wisconsin teacher (WRS pension) against a private-sector peer (401k) toward the same goal: retirement at 55. Adjust the sliders to explore different assumptions — click any value to type a specific number.

INPUTS

Assumptions

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Person A — WRS Pension

Starting Salary

$45,000

Annual Raise

2.5% — Wisconsin Act 10 cap is 2.63%; many districts average higher with steps.

Employee WRS Contribution

7.2% — 2026 rate

Employer WRS Contribution

7.2% — 2026 rate; 2027 rate will be 7.25%

Estimated Social Security at 62 (monthly)

$1,200/mo

Person B — Private Sector 401k

Starting Salary

$55,000

Annual Raise

3.5% — typical corporate trainer range: 3.2–3.6%

Employee 401k Contribution

4.0% — enough to capture the full employer match

Employer Match

4.0%

Estimated Social Security at 62 (monthly)

$1,800/mo — higher lifetime earnings produce a larger SS benefit

Applies to both

Starting Age

Age 23

Retirement Age

Age 55

Person B only — 401k assumptions

Investment Return

7.5% — conservative long-term assumption for a diversified index fund

Withdrawal Rate

4.7% — applied to Person B's 401k balance to estimate monthly income

RESULTS

At Retirement (Age )

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Base Comparison Accelerated + SS Payout Timeline

Person A — WRS Pension

Retirement Income

Base monthly pension

Salary

Starting salary

Final salary

Pension Calculation Basis

Years of service

Final Average Salary (FAS)

Contributions

Your contributions (lifetime)

Employer contributions (lifetime)

Total contributions

Person B — Private Sector 401k

Retirement Income

Monthly drawdown income

Salary

Starting salary

Final salary

401k Balance

Balance at retirement

Income basis

Contributions

Your contributions (lifetime)

Employer contributions (lifetime)

Total contributions

Highlight larger value in each row

Item	Person A (WRS)	Person B (401k)

The WRS accelerated option adds Person A's estimated Social Security amount to their monthly pension from retirement until age 62, then reverts to the base pension at 62 when Social Security begins. It is not more total money — it redistributes income across the retirement period. Neither person can access Social Security before age 62.

Person A — WRS Pension

Base Option

Monthly pension (age +)

Accelerated Option

Age to 62 — pension + projected SS

Age 62+ — reverts to base pension

Social Security (age 62+)

Estimated monthly SS at 62

Total income at 62+ (base pension + SS)

Person B — Private Sector 401k

Drawdown Income

Monthly drawdown (age +)

72(t) SEPP required before age 59½. No equivalent to the accelerated option.

Social Security (age 62+)

Estimated monthly SS at 62

Total income at 62+ (drawdown + SS)

Social Security estimates are user-supplied. Actual SS benefits depend on your full earnings history. Use ssa.gov/myaccount for a personalized estimate. The WRS accelerated option amounts shown here are approximations — ETF calculates your actual accelerated benefit based on your specific record.

Cumulative income received by age, including Social Security at 62. Person A's pension is guaranteed; Person B's drawdown depends on continued portfolio returns. A crossing point — if one exists — shows where one path pulls ahead of the other.

Include Social Security at 62

Person A — pension (+ SS at 62)

Person B — 401k drawdown (+ SS at 62)

Crossing point

This tool is for educational purposes only. It is not financial advice. WRS pension uses a 1.6% multiplier (general category) and a 3-year final average salary. Person B's 401k requires a 72(t) SEPP distribution to access before age 59½. Consult a financial advisor before making retirement decisions. Built by Josh Hertel — personalfinanceforeducators.substack.com