New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

American Family Employees: 11 Questions You Should Ask Yourself When Planning for Retirement

Healthcare Provider Update: Healthcare Provider for American Family American Family Insurance offers health insurance primarily through its partnership with HealthPartners and other regional health systems, depending on specific plan availability and state regulations. They provide a range of health coverage options, including individual and family plans as part of their broader insurance portfolio. Brief on Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, significant rises in Affordable Care Act (ACA) premiums are expected in 2026, with average increases projected at around 20%. This surge is attributed to various factors, including escalating medical costs, the potential expiration of enhanced federal premium subsidies, and aggressive rate hikes from major insurers like UnitedHealthcare, which is requesting increases as high as 66.4% in certain states. Consequently, if these subsidies are not extended, many consumers could experience a staggering 75% increase in their out-of-pocket premiums, pricing out a substantial segment of middle-income families from adequate coverage. As a result, 2025 becomes a crucial year for consumers to proactively strategize to mitigate the financial impacts of skyrocketing healthcare costs. Click here to learn more

Introduction

When Do You Want to Retire?

Where Will You Live?

How Will You Spend Your Time in Retirement?

Do You Want to Leave a Financial Legacy to Your Family or a Charity?

What Will You Do to Stay Healthy?

What Will Be Your Sources of Retirement Income?

What Expenses Will You Need to Cover in Retirement?

About The Retirement Group

Sources

Introduction

From working with a large amount of American Family clients, we have developed a good understanding as to what it takes for a American Family employee or retiree to achieve a successful retirement. Below are some questions to ask yourself that we feel are important in building towards a successful retirement.

When Do You Want to Retire?

If you are married, when will your spouse retire?

When will you start receiving Social Security benefits?

Where Will You Live?

Will you have one home or multiple? Downsizing or upsizing?
Consider housing cost based on type (house, condo, retirement community)
Family & social network considerations
State income, real estate & estate tax implications

How Will You Spend Your Time in Retirement?

Make a bucket list
Volunteering opportunities?
2nd career or part-time work?
Business interests
Hobbies & travel
Estimate costs and resources
Be sure to prioritize

Do You Want to Leave a Financial Legacy to Your Family or a Charity?

Are there loved ones you need to take care of financially?
Are there charities you are passionate about?
Do you have a will and/or trust in place?

What Will You Do to Stay Healthy?

Exercise plan
Socialize
Prioritize mental health
Longevity expectations
Do you have health care directives in place?

What Will Be Your Sources of Retirement Income?

Will you continue to work?
Do you expect an inheritance?
Itemize your income-generating assets
How will you draw down your investment assets?
When will you start collecting Social Security?

What Expenses Will You Need to Cover in Retirement?

Are there items you expect will cost more than your current expense level?
Are there costs you will eliminate in retirement?
Evaluate post-retirement insurance needs
Are there any celebrations you want to finance?
What will your transportation needs be in retirement?
Do you have funds to cover an emergency?
Have you paid off any debt or have a plan to pay it off?
Will you have a mortgage to pay?
The average amount of savings required to retire comfortably in the United States is $904,452 [6]

Do You Own a Business?

Will you stay involved?
What’s your transition plan?
Will you sell your company to fund your retirement?
Business income? Business sale proceeds?
Appraise the future value of your business

How Will You Cover Medical Expenses?

Will you purchase a Medigap or Medicare Advantage plan?
What’s your plan for financing long-term care?
The average retiree should save about $295,000 to cover medical expenses in retirement [7]

Have You Considered Tax Strategies To Improve Retirement Cash Flow?

Compare state tax rates
Roth conversion strategies
Tax efficient charitable giving
Planned gifts to family
Asset location of investments

Do You Have a Relative or Friend That You Trust to Provide Financial or Health Advice?

Who can you talk to about medical issues?
Who do you trust with financial decisions?
Have you established medical and property POAs?

About The Retirement Group

The Retirement Group is a nation-wide group of financial advisors who work together as a team.

We focus entirely on retirement planning and the design of retirement portfolios for transitioning corporate employees. Each representative of the group has been hand selected by The Retirement Group in select cities of the United States. Each advisor was selected based on their pension expertise, experience in financial planning, and portfolio construction knowledge.

TRG takes a teamwork approach in providing the best possible solutions for our clients’ concerns. The Team has a conservative investment philosophy and diversifies client portfolios with laddered bonds, CDs, mutual funds, ETFs, Annuities, Stocks and other investments to help achieve their goals. The team addresses Retirement, Pension, Tax, Asset Allocation, Estate, and Elder Care issues. This document utilizes various research tools and techniques. A variety of assumptions and judgmental elements are inevitably inherent in any attempt to estimate future results and, consequently, such results should be viewed as tentative estimations. Changes in the law, investment climate, interest rates, and personal circumstances will have profound effects on both the accuracy of our estimations and the suitability of our recommendations. The need for ongoing sensitivity to change and for constant re-examination and alteration of the plan is thus apparent.

Therefore, we encourage you to have your plan updated a few months before your potential retirement date as well as an annual review. It should be emphasized that neither The Retirement Group, LLC nor any of its employees can engage in the practice of law or accounting and that nothing in this document should be taken as an effort to do so. We look forward to working with tax and/or legal professionals you may select to discuss the relevant ramifications of our recommendations.

Throughout your retirement years we will continue to update you on issues affecting your retirement through our complimentary and proprietary newsletters, workshops and regular updates. You may always reach us at (800) 900-5867.

Sources

What to do with an Early Retirement Ebook
Social Security Ebook
Lump Sum vs. Annuity Ebook
401(k) Rollover Strategies Ebook
Closing the Retirement Gap Ebook
Average Retirement Income By State.' World Population Review, 2021
Powell, Robert. 'How to pay for healthcare costs in retirement.' MarketWatch, April 10, 2021

What type of retirement savings plan does American Family offer to its employees?

American Family offers a 401(k) retirement savings plan to its employees.

Does American Family match employee contributions to the 401(k) plan?

Yes, American Family provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.

What is the eligibility requirement for American Family employees to participate in the 401(k) plan?

Employees of American Family are typically eligible to participate in the 401(k) plan after completing a specified period of service.

Can American Family employees choose how to invest their 401(k) contributions?

Yes, American Family employees can choose from a variety of investment options within the 401(k) plan to tailor their investment strategy.

What is the maximum contribution limit for American Family's 401(k) plan?

The maximum contribution limit for American Family's 401(k) plan is determined by IRS regulations, which may change annually.

Does American Family allow for catch-up contributions in the 401(k) plan?

Yes, American Family allows employees aged 50 and older to make catch-up contributions to their 401(k) plan.

How often can American Family employees change their contribution amounts to the 401(k) plan?

American Family employees can typically change their contribution amounts to the 401(k) plan on a quarterly basis or as specified in the plan documents.

Are loans available from the 401(k) plan at American Family?

Yes, American Family's 401(k) plan may allow employees to take loans against their vested balance, subject to specific terms and conditions.

What happens to my 401(k) balance if I leave American Family?

If you leave American Family, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the plan if allowed.

Does American Family offer financial education resources for employees regarding the 401(k) plan?

Yes, American Family provides financial education resources to help employees make informed decisions about their 401(k) savings.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

American Family Insurance provides a defined contribution 401(k) plan with company matching contributions. Employees can contribute pre-tax or Roth (after-tax) dollars, and American Family matches a percentage of eligible compensation. The plan includes various investment options, such as target-date funds and mutual funds. Financial planning resources and tools are available to help employees manage their retirement savings.

Layoffs and Restructuring: In October 2023, American Family Insurance confirmed staff reductions aimed at increasing efficiencies across its operations. The layoffs affected various positions, including leadership roles, as the company consolidates areas that provide similar functions across its multiple insurance brands (Sources: Insurance Journal, The Insurer). Financial Performance: The company reported a significant underwriting loss of $1.5 billion in 2022, attributed to inflation and high catastrophe claims. Despite these losses, American Family maintains a strong financial position with plans to reinvest in products and services (Sources: Carrier Management, AM Best). Operational Changes: The restructuring aligns with American Family's strategy to streamline processes and improve cost management, which is essential for sustaining long-term growth and delivering value to customers (Sources: Insurance Journal, The Insurer).

American Family Insurance grants RSUs that vest over time, providing shares upon vesting. Stock options are also part of their compensation, allowing employees to buy shares at a fixed price.

American Family Insurance has consistently enhanced its employee healthcare benefits to adapt to the evolving needs of its workforce. For 2023, the company maintained comprehensive medical, dental, and vision plans. These plans offer a range of services including preventive care, major dental work, and vision care, which covers eye exams, lenses, and frames. Mental health support is also a significant part of the benefits package, with access to counseling services and wellness programs designed to support employees' mental and emotional well-being. These offerings are designed to ensure that employees have access to quality healthcare, promoting a healthier work environment and improving overall productivity. In 2024, American Family Insurance continued to refine its healthcare benefits, placing a greater emphasis on flexibility and comprehensive coverage. The company introduced enhancements such as expanded mental health resources and wellness programs aimed at managing chronic conditions and preventive care. This is particularly important given the current economic and political climate, where healthcare costs are rising and the need for robust employee support systems is critical. The company also provides various options for employees to manage healthcare costs through Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). By continuously updating its benefits offerings, American Family Insurance ensures that its employees are well-supported in maintaining their health and well-being.

Additional Articles

Check Out Articles for American Family employees

For more information you can reach the plan administrator for American Family at 6600 american parkway Madison, WI 53783; or by calling them at 1-800-692-6326.

https://www.amfam.com/documents/pension-plan-2022.pdf - Page 5, https://www.amfam.com/documents/pension-plan-2023.pdf - Page 12, https://www.amfam.com/documents/pension-plan-2024.pdf - Page 15, https://www.amfam.com/documents/401k-plan-2022.pdf - Page 8, https://www.amfam.com/documents/401k-plan-2023.pdf - Page 22, https://www.amfam.com/documents/401k-plan-2024.pdf - Page 28, https://www.amfam.com/documents/rsu-plan-2022.pdf - Page 20, https://www.amfam.com/documents/rsu-plan-2023.pdf - Page 14, https://www.amfam.com/documents/rsu-plan-2024.pdf - Page 17, https://www.amfam.com/documents/healthcare-plan-2022.pdf - Page 23