Chapters

00:00 The True Value of Teaching in Mississippi

01:08 Breaking Down the Numbers

02:06 Comparing Teacher Earnings to Professional Athletes

03:14 Understanding the PERS Pension System

04:16 Key Takeaways from the Data

Transcript

Hi everyone, I'm Ryan Earley, host of the PERS Pro YouTube channel. When people talk about teaching in Mississippi, the conversation always focuses on the starting salary. But today, we're looking through a different lens. We're looking at the lifetime value of a teaching career. We've crunched the numbers from the 2024-2025 school year for over 29,000 teachers, and the results just might shock you. We aren't just talking about a paycheck. We're talking about a multi-million dollar career that rivals the average contracts in professional sports. Let's get started.

Before we dive in, make sure you hit that subscribe button down below so you don't miss any of our future videos. Our goal with this channel is to provide you with short, easy to understand, financial education videos that are relevant to PERS members like you.

Disclaimer, this video is for educational and informational purposes only. Neither the host nor this YouTube channel are officially affiliated with, endorsed by, or sponsored by the Public Employees Retirement System of Mississippi. Always consult a qualified professional for personal advice specific to your situation.

To understand the true value of being a teacher, we have to look past the monthly direct deposit. We analyzed the compensation data and modeled a 30-year career for a Tier 4 teacher starting at age 22. When you combine three specific buckets, the numbers reach a scale most people don't realize.

Career earnings. Based on current trends, a 30-year teaching career in Mississippi generates roughly $1.6 million in gross base salary.

PERS pension. This is the secret weapon. If you retire after 30 years of service and live to the age of 80, your total pension payouts, boosted by that 3 % COLA, will total approximately $1.46 million.

Social Security. Adding in estimated Social Security benefits from age 67 to age 80 contributes another $336,000.

When you add it all up, the lifetime value of a Mississippi teacher's career is approximately, $3.4 million. Now, let's put that $3.4 million into perspective. We often see headlines about massive sports contracts. But many people don't realize that a 30 year teaching career in Mississippi actually beats or rivals the average total contract value in several major professional leagues.

Estimated total value Mississippi teacher, $3.4 million.

Total value for average NFL contract, $2.8 million.

Total value for average NHL contract? $3 million.

Median average MLB career earnings $3.5 million.

Now stop and think about that. While an NBA superstar might sign for say $200 million, the average professional athlete has a relatively short career. A Mississippi teacher who stays the course for 30 years generates more total wealth than the average NFL or NHL player will see from their playing contracts.

How and why does this happen? Well, almost 50% of the total teaching value is attributable to the PERS pension. In the private sector or pro sports, once that job ends, the money stops. For a PERS member like you, your retirement is a defined benefit plan. It is guaranteed for your lifetime and it grows every single year you are in retirement.

The most overlooked part of this $3.4 million figure is the 13th check or the COLA. In our model, a teacher might retire with an annual pension of around $40,000. But because of the 3 % compounding cola, by the time that same teacher is 80 years old their annual pension payout has grown to over $74,000 a year. That inflation protection is something almost no pro athlete or private sector employee has access to. It ensures that your contract with the state of Mississippi keeps paying you more even decades after you've left the classroom.

So what are the big three takeaways we can take away from this data? Teaching is a multimillion dollar career. Don't let that starting salary fool you. The total package is worth over $3.4 million. Consistency and longevity is king. The real wealth in PERS is back loaded. The longer you stay working, the higher your highest average salary is and the bigger your pension becomes.

The pension is the difference maker. Your pension alone is worth nearly $1.5 million over a typical retirement. That is wealth that most people have to save hundreds of thousands of dollars in a 401k to replicate.

In future episodes, after our salary series ends, we're going to walk through various decisions that must be made and forms that must be completed as it relates to PERS members. Make sure you subscribe so you don't miss those future videos. If you found this video helpful, can thank me by liking the video and sharing it with other PERS members. If you have a follow-up question about PERS or anything else related to personal finance that impacts PERS members, please visit our website at perspro.ms and submit your question for a future episode. Thank you for your valuable public service to the state of Mississippi. We'll see you next time.