How Tim Walz’s time in public service could reward him richly in retirement

While Tim Walz’s disclosed net worth might seem modest compared to other candidates in this year’s presidential election, the 60-year-old VP aspirant is still probably far more financially stable than many retirees.

Thanks to Walz’s long tenure of public service – including teaching, military service, and his still-ongoing political career – the governor of Minnesota is entitled to a portfolio of pensions that can help his nest egg withstand even a $135,000 withdrawal to pay for his daughter to go to college.

As reported by the Wall Street Journal, Walz and his wife spent roughly two decades since 1996 working at Mankato’s West High School in Minnesota, a public school. As a result, the Walz household benefits from two Minnesota teacher pensions, valued between $16,002 and $65,000, alongside two state employee retirement accounts worth between $65,002 and $150,000.

Starting at age 62, Walz will be an entitled to an annual inflation-adjusted payout of about $35,000 from his time in Congress between 2007 and 2019. While it’s possible Walz started taking his pension earlier starting at age 56 – which would have reduced the yearly distributions – the Journal notes that’s unlikely as no pension income was declared on his 2021 and 2022 tax returns.

Walz’s time in Congress also gave him the opportunity to contribute to the Thrift Savings Plan, a 401(k)-like retirement vehicle offered to federal government employees like himself. Speaking to the Journal, Demian Brady, vice president of research at the National Taxpayers Union Foundation said that if Walz becomes president, he’d be able to keep kicking money into that pot, bolstering his Congressional pension.

Meanwhile, Walz’s time at the National Guard, which reportedly ended in 2005 and spanned at least 20 years, makes him eligible for a third stream of benefits for US service members.

Financial adviser Mike Hunsberger told the Journal those who receive a pension from the National Guard often get a payout that’s roughly 10 percent of the highest average three years of pay they earned, adjusted for inflation. Based on the current pay for those who achieved Walz’s rank and tenure, that would amount to roughly $8,200 yearly.

“He has a good retirement fund. It’s not luxurious, but it’s designed for someone who has been a public servant for most of his life,” Richard Painter, a professor at the University of Minnesota Law School, told the news publication.