The November interest rates, which AT&T uses to determine lump sum values for everyone who retires in 2022 will be released in mid December. Rates increased in November and if that trend holds we could see a reduction in lump-sum values for AT&T employees who retire in 2022. If you decide to stay past December 31st, 2022, you could see a significant reduction in your lump sum. Interest rates are trending upward, and when interest rates rise, lump sums fall. If you believe that interest rates in November 2021 will be higher than November 2020 (Which is likely) you may want to consider retiring before January 1st, 2022. This will allow you to lock in the medical coverage and take advantage of a lower interest rate, which will increase your lump-sum amount.
Over 65 Years of Age? This Article in for You:
65 or Younger? You'll Love this Article!
AT&T announced that there will be significant changes made to retiree’s healthcare benefits. Traditionally, when a retiree is eligible for Medicare (For most people this is at age 65), their primary health insurance is switched from the AT&T plan to Medicare.
As many of you know those who retired after January, 1st 2021 no longer receive a healthcare reimbursement account from AT&T which helps cover things like out-of-pocket costs, incremental coverage, or supplemental coverage.