Redefining retirement
The word “retirement” is of French origin from the 1500s and was defined as the “act of retreating” and the “act of withdrawing into seclusion.” By the 1640s, it was applied to a “withdrawal from occupation or business.”*
While today we may think of retirement as a time of no longer being employed, it does not, and should not, mean that those who are retired need to withdraw from society or play a less active role.
While figuring out the financial aspects of retirement is imperative, longer lives are bringing out the emotional aspects of it as well. For many, work has been a major part of their identity—a large chunk of time is spent there over many decades. Work has given their life structure and often is central to their life and lifestyle.
This new chapter in life can bring many opportunities and choices, but it also brings major changes. The 2025 Trends in Retirement Planning report found that only 11% of financial planners believe their clients are emotionally prepared for retirement. They cite clients’ fear of adapting to no longer having work as well as losing their sense of identity.
It may help to think about retirement not as retiring from, but retiring to. It’s not just about having more relaxed days, but imagining how we will describe ourselves and define our self-worth in retirement.
- Consider planning out future daily or weekly schedules to help you think through your new reality.
- Look at your career and what you enjoy, what your strengths and weaknesses are, and then use those insights to help guide you onto hobbies or volunteer opportunities you might like to do when you retire.
- Get perspectives from your network of friends and family who have already retired to help with the transition.
Our lives are not defined by the work we do or have done. While you need a solid financial foundation (we can help you plan for that), having a clear vision of your future self is key. The definition of retirement is up to you.
* Online Etymology Dictionary | Sources: Financial Planning Association, MONEY.
Moving to a new school district this fall?
There’s a lot to think about when moving to a new school district: new classroom, new students, new coworkers…and a new 403(b).
Your 403(b) is an employer-sponsored plan, so when you leave a district, any contributions to that account stop. To continue funding your retirement savings, you need to set up a new retirement account with your new district.
We can help you enroll in your new plan and assist with consolidating your accounts (if allowed by the plan).
Schedule a meeting here or call us at 1-800-279-4030.
P.S. Consolidating your retirement accounts makes them easier to manage and may save you money. If you want to rollover a 401(k) or other retirement account(s) to a WEA Member Benefits IRA, we can help with that, too!
Smart IRA savings strategies
Save all at once
Maybe you make yearly contributions to your Individual Retirement Account (IRA), which is a smart move. But don’t overlook a simple way to boost your long-term IRA earnings—contribute early in the year.
If you are one of those people who waits until the last minute to contribute to your IRA, you are missing out on an opportunity.
It’s true that you may apply IRA contributions (up to the current limit) by April 15 to the previous tax year for both traditional and Roth IRAs. But contributing early in the year allows your money more time to grow.
For example, making your contribution early in the tax year instead of on tax day gives you up to 15 extra months of growth for your money. Factor in the years of contributions before retirement, and you may be looking at a nice chunk of change.
Save over time
For many people, however, making one large contribution isn’t feasible regardless of when you write the check. That’s why we make it easy to contribute through SmartPlan IRA, an electronic transfer system that allows you to move money into your Member Benefits IRA from your bank, savings and loan, or credit union automatically. It’s free and easy to do.* You can even select the day of the month you want your contributions to process. With SmartPlan IRA, your contributions are spread out over the year with smaller, more manageable contributions.
If you are not currently contributing to an IRA, consider making it part of your savings plan. An IRA is a great way to increase your retirement savings and take advantage of tax benefits. And regardless of which way you save, contributing regularly is a smart way to build your retirement savings.
*Check with your financial institution to see whether they charge for this transaction.
Understanding the time value of money
Hindsight may be 20/20, but foresight will help you more in retirement.
Over time, most things get a lot more expensive, particularly food, health care, utilities, and housing.
The time value of money (TVM) principle states that a sum of money today is worth more than the same sum in the future. In other words, the sooner you use it, the more valuable it is.
For example, if you had a choice between receiving $1,000 today or $1,000 one year from now, what would you choose? Choosing the former will provide more value to you now than a year from now.
There are three reasons for why this is true, according to Harvard Business School:
- Opportunity cost: Money you have today can be invested and accrue interest, increasing its value. This is where compound interest comes in. The sooner you save, the more you can benefit from the accumulated interest.
- Inflation: Your money may buy less in the future than it does today. When you are making decisions about when to retire, it’s important to add this to your calculations. According to Investopedia, inflation can vary sharply—for example, in 2021, inflation hit 7% in the wake of COVID, but was 2.9% in 2024. The historical average is around 3%, but you’ll want to decide on what seems reasonable to your situation.
- Uncertainty: Something could happen to the money before you’re scheduled to receive it. Until you have it, it’s not a given.
Understanding the TVM is critical in ensuring your retirement plan stays ahead of inflation. Keeping this principle in mind can help you plan how much to save, when to withdraw, and to evaluate investments to ensure your future income covers living expenses despite rising costs.
Time to review 403(b) and IRA contribution limits
Contribution limits for the 403(b) and IRA increased in 2026. The contribution limit for the 403(b) is $24,500. The limit on annual contributions to an IRA is $7,500.
If you’re not maximizing your contributions, you may wish to re-evaluate the amount you’re putting toward retirement. Not only do you lower your taxable income, you ensure that you’re doing everything you can to reach your retirement goals.
If maxing out contributions is not realistic for you right now, remember: With compound interest, even a small amount invested today can grow to a large sum by retirement.
Elective 403(b) Contribution Limits
| Calendar year | Salary Reduction Contribution Limit | 15 Years of Service Catch-Up | Age 50 and Over Catch-Up | Age 60-63 Super Catch-up | Possible maximum |
|---|---|---|---|---|---|
| 2026 | $24,500 | $3,000 | $8,000 | $11,250 | $38,750 |
| 2025 | $23,500 | $3,000 | $7,500 | $11,250 | $37,750 |
- In 2026, the age 60-63 super catch-up limit remains unchanged at $11,250 (if allowed in your plan). The super catch-up contribution limit includes the age 50 and over catch-up. The standard contribution limit resumes the year you turn 64.
- Not all districts offer the 15 years of service catch-up provision in their 403(b) plan. Contact your district office to learn more.
- Some employers only allow changes at the start of the school year and then again in January. Others allow more frequent changes. Call Member Benefits to assist you with updating your salary deferral amount.
- Some districts may allow Roth 403(b) contributions. Your 2026 Roth contributions and your pre-tax contribution combined must not exceed the $24,500 limit for participants under age 50, $32,500 for participants age 50 – 62, or $35,750 for participant age 60-63.
IRA (Roth and Traditional) Contribution Limits
| Calendar year | Under age 50 | Age 50 or older |
|---|---|---|
| 2026 | $7,500 | $8,600 |
| 2025 | $7,000 | $8,000 |
- You may contribute to both a Roth and Traditional IRA, but your combined contributions must not exceed the annual limits.
- You can start or modify IRA recurring contributions and/or submit a one-time lump-sum contribution in the yourMONEY portal.
- If you make automatic IRA contributions using SmartPlan, your contributions do not adjust automatically to meet the new limits. To make adjustments, log into the yourMONEY portal or call 1-800-279-4030.
NOTE: Because the maximum Roth IRA contribution may be reduced depending on MAGI (Modified Adjusted Gross Income), some high-income taxpayers may not be able to make Roth IRA contributions; however, they could make Traditional IRA contributions.
Five Social Security facts
We encourage Wisconsin public school employees to consider three things for funding their retirement: Wisconsin Retirement System (WRS), personal savings in a 403(b) and/or IRA, and Social Security.
Social Security can be complicated, and as a result, many people don’t have a full understanding of the choices they may have. Here are five facts about Social Security that are important to keep in mind.
- While WRS may likely be a main source of income for public school employees, Social Security is still an important source of retirement income for you as a public school employee.
- You can choose when you take Social Security. You may begin receiving benefits as early as age 62; however, your benefits will be reduced. The full retirement age is 67 if you were born in 1960 or later. If you were born before 1960, your full retirement age will be reduced depending on the year in which you were born.
- Social Security may be taxable depending on your income and may have implications for whether you choose to work during retirement, how your assets are invested, and the timing of withdrawals from other retirement accounts.
- When you start receiving Social Security benefits, other family members may also be eligible for payments.
- If you are divorced, you may qualify for Social Security benefits based on your ex-spouse’s work record.
If you’d like to do some break-even calculations or learn when and where to apply for Social Security, schedule a consultation with us.
1-800-279-4030
weafa@weabenefits.com
Sources: FMG, SSA.gov.
Pretax or Roth?
Did you know you may be able to contribute pretax and after-tax Roth contributions to your 403(b) account?
Pretax contributions lower your current taxable income, and are taxed as income when you take them out as withdrawals.
After-tax Roth contributions are taxed before the contribution goes into your 403(b) account. As long as certain requirements are met,* Roth funds, including all accumulated earnings, are not taxed when you take them out as a distribution.
So, the question is, do you want to pay the taxes on your deferrals now or when you retire?
One of the key advantages of Roth savings is the potential to lower your tax burden in retirement. As a public school employee, your retirement income may include a pension, Social Security, and individual retirement savings. All are typically taxed as ordinary income. By contributing to a Roth 403(b), you can create a source of tax-free income in retirement.
For more details explaining Roth 403(b) deferrals as well as information on how after-tax and before-tax savings may fit into your retirement savings strategy, see our To Roth or Not to Roth in your 403(b) online brochure.
*For qualified withdrawals from the Roth 403(b), the participant must be age 59½ or older and have had the account for at least five years.
Rollover to a Member Benefits IRA
Do you or your spouse have an IRA, 401(k), 403(b), 457(b), SIMPLE IRA, and/or SEP IRA with other companies? If so, you’re probably paying multiple annual fees.*
Managing your investment accounts is easier when you consolidate. Consider rolling over into our IRA program where you’ll pay ONE low administrative fee up to an annual fee cap.**
An IRA is a great way to save for your future. Increase your retirement savings and take advantage of tax benefits. We offer both our Roth and Traditional IRAs. Traditional IRAs give you tax-deferred growth and possible tax deductibility now, while Roth IRAs offer tax-free growth, meaning no taxes at all later on.
And our IRA program is open to family members! Your family, including your spouse or domestic partner, children and their spouses, parents, and parents-in-law, may also be eligible to participate in our IRA program.1
We can help you complete your transfer or rollover in a few easy steps. It only takes about five minutes with the help of one of our technical assistants.
Give us a call at 1-800-279-4030 or begin the process.
*Be sure to consider all your available options and the applicable fees and features of each option before moving your retirement assets.
**A minimum annual fee of $25 will apply to accounts that have no annual contributions. Mutual fund management and
redemption fees may apply.
1 To be eligible for this program, you must meet the IRS eligibility requirements for contributing to an IRA. Restrictions may apply. Certain state residency required.
Market volatility happens
When markets drop, it’s tempting to react impulsively by selling stocks or changing your portfolio. But history shows markets fluctuate—sometimes for days, weeks, or months. Accept the predictable unpredictability of the market. If that seems tough, keep these points in mind:
- Retirement accounts are set up for long-term investing. Focus on your long-term goals and try to ignore short-term market ups and downs.
- Having clear, prioritized retirement and investment goals will keep you on track, no matter how the market fluctuates. Good financial goals and a solid long-term financial plan can help weather short-term volatility and the impacts of inflation and other economic conditions.
- A well-diversified portfolio can alleviate some of the effects when the market declines. You want to diversify across, and within, the major asset classes, keeping in mind that investments fluctuate in price.
- Take advantage of opportunities to build up your finances by paying down debt, maintaining an emergency fund, and saving up for larger expenses such as a house or vacation.
- Protect your money by staying vigilant for fraud. There are no “risk-free” returns, so be cautious of anyone offering such guarantees. Avoid fraud by working only with registered investment professionals verified through FINRA BrokerCheck and adhering to your established financial plan.
- The Guaranteed Stable Investment through Member Benefits is one option to consider as part of your long-term strategy. Learn more about its role in your portfolio at weabenefits.com/understanding-stable-value-investing.
If you are experiencing more volatility than you’re comfortable with, it might be wise to take a look at your portfolio. Contact us at 1-800-279-4030 if you need help or have questions.
Source: FINRA.
Quick tips for building your retirement confidence
The Employee Benefit Research Institute’s 2025 Retirement Confidence Survey finds that majorities of Americans report a positive outlook for retirement—67% of workers and 78% of retirees feel confident they will have enough money to live comfortably throughout retirement. We have some tips to help you feel more confident that you’re doing all you can to pursue your financial goals.
Don’t set it and forget it
The amount you need to save, how much you can plan on from Social Security, etc., are based on estimated numbers that will change over time. Revisit your financial goals and assumptions at least once a year or when major life changes happen so you can make adjustments to your savings strategy.
Think smaller
Instead of looking at your retirement goal as one big number, try looking at your anticipated monthly income need. This will make it easier to view along with your monthly expected Wisconsin Retirement System pension and Social Security estimate. It can help make your planning process more manageable, realistic, and less daunting.
Take the match and stretch to the limit
If your district employer offers a match in their 403(b) program, be sure to take it—it’s free money. And if you can max out your contributions, do it. You may even be permitted extra catch-up contributions once your turn 50. In addition, certain employees who are ages 60 to 63 may qualify for a super catch-up limit in 2025, if allowed in your plan. Learn more about contribution limits.
Use free tools and resources
Member Benefits offers a plethora of financial information and tools to help you plan ahead. Visit our learning center to access articles, calculators, eBooks, and much more.
Prioritize your future
Life will throw financial challenges at you, but it will likely also throw you some opportunities. When you get a raise, pay off a debt, or get a tax refund, that may be a good time to put extra savings into your retirement.