If You’re Retiring With a WRS Pension, Don’t Choose an Annuity Payout Before Reading This
The Wisconsin Retirement System (WRS) offers government employees a pension annuity option that pays income for life. It sounds like a simple choice—but it’s not the only or necessarily the best option. Most retirees are unaware that they can roll over their WRS lump sum into a personal annuity that often provides higher income, more flexibility, and control over their legacy.
At The Annuity Expert, we’re licensed annuity brokers who specialize in helping public employees compare their government pension payout with private annuity alternatives. Our job is to find the highest possible income using the lump sum value of your WRS pension.
Compare Wisconsin’s Monthly Pension Payouts vs. Lump Sum IRA Rollovers
Use our Wisconsin State Pension Calculator to explore your retirement options. Discover whether a monthly payout or rolling your lump sum into an IRA fixed index annuity with a Guaranteed Lifetime Withdrawal Benefit is the best solution for your unique retirement needs. Our calculator helps you compare the pros and cons, empowering you to plan your income in retirement and maintain control over your accounts.
Below will estimate how much annual income you’ll receive if you roll over the Wisconsin State Pension to your own IRA annuity with a GLWB.
Calculator Purpose
The Wisconsin State Pension Calculator helps pension owners estimate their monthly payout or assess the benefits of transferring or rolling over their lump sum into a new IRA fixed index annuity. This tool aids in income planning in retirement, allowing you to make informed decisions tailored to your financial goals.
Key Features
- Monthly Payout Option: Estimate the steady income from the state pension annuity.
- Lump Sum IRA Rollover: Compare the benefits of maintaining control over your retirement accounts by rolling over your lump sum into a fixed index annuity with a Guaranteed Lifetime Withdrawal Benefit.
Scenario: You’re Nearing Retirement and Facing a Payout Choice From WRS
You can either:
- Take a monthly annuity payment from WRS for the rest of your life
- Or choose the lump sum payout and invest it in a personal annuity
On the surface, the monthly WRS annuity seems like a safe, easy option. But once you choose it, there’s no turning back—and you lose all access to your principal.
We help you compare that to a personal annuity strategy designed for higher guaranteed income, flexibility, and the ability to pass remaining funds to beneficiaries.
Compare Your Options
Option 1: Wisconsin Pension Annuity
- Income is based on WRS’s internal formulas and market performance
- Payments stop when you and your spouse die (unless you choose a lower-paying survivor option)
✔ Lifetime income
✔ Backed by WRS
✘ No control over investment or contract
✘ No access to the principal
✘ No death benefit (unless you accept lower income)
✘ No flexibility once payments begin
Option 2: Personal Annuity With a Guaranteed Lifetime Withdrawal Benefit (GLWB)
- Use your WRS lump sum to purchase a private annuity with income guarantees
- You maintain control and can access unused funds or leave them to your heirs
✔ Up to 8% income base growth before retirement
✔ Flexible income start date
✔ Access to principal (in most cases)
✔ Guaranteed income for life
✔ Joint payouts for spouse
✔ Lump sum death benefit
✘ Income depends on the carrier’s rates and terms
✘ Some contracts have surrender periods
Who Should Choose a Personal Annuity?
- Retirees who want maximum guaranteed income
- People who want to maintain control of their assets
- Those who want the option to leave money to heirs
- Anyone concerned about inflation, market crashes, or outliving their savings
- Individuals seeking tax-efficient rollover options with no penalties
Who Should Stick With the WRS Pension Annuity?
- Individuals with no heirs and no interest in preserving assets
- Those who are comfortable giving up control of their retirement funds
- Retirees who want the simplest, one-and-done decision
Pros and Cons
Monthly Payout from State Pension:
Pros:
- Guaranteed, predictable income for life.
- No need to manage investments.
Cons:
- Limited flexibility or control over the funds.
- Payments stop when you or your beneficiary passes away, depending on plan terms.
Lump Sum Rollover into Fixed Index Annuity:
Pros:
- Don’t give up control over your retirement accounts.
- Offers income planning in retirement with potential inflation protection.
- Funds can grow tax-deferred with market-linked interest.
- Beneficiaries can inherit the remaining funds as a lump sum.
Cons:
- Investment performance may vary depending on the annuity’s terms.
- Early withdrawals may result in penalties.
Other Wisconsin Resources
- Explore Wisconsin Retirement Planning Resources
- Estimate Wisconsin Retirement Income Taxes
- Compare Wisconsin Annuity And CD Rates
- Compare High-Yield Savings Accounts In Wisconsin
- Compare Long-Term Care Insurance In Wisconsin
- Compare Life Insurance Rates In Wisconsin
- Contact Wisconsin Department of Insurance
- Contact Wisconsin Department of Financial Institutions
- Learn About Protection From Wisconsin Insurance Security Fund
Why Choose The Annuity Expert?
Our retirement planners specialize in finding the best solutions for your unique retirement. Whether you want to transfer or rollover your retirement accounts or fund with cash, we help you shop for the best options for your needs. Before you buy, use our calculator and book a no-obligation consultation.
Our Role as Your Annuity Broker
The Annuity Expert is not tied to one insurance company. We compare dozens of annuity carriers to find the highest-paying contract for your unique situation. Most WRS members don’t realize they can do this—and that’s where we step in.
- ✅ We find the highest payout for your lump sum
- ✅ We explain all contract terms, including fees and features
- ✅ We ensure the annuity aligns with your family, tax, and retirement goals
- ✅ We do it all with no cost to you
Estimate Wisconsin Pension Annuity Payments
Book a Call with our retirement planners for a free, no-obligation consultation to find the perfect solution for your unique retirement needs.