For Kimberly-Clark Employees, the Greatest Threat to a Prosperous Retirement Is Longevity.

Healthcare Provider Update: Healthcare Provider for Kimberly-Clark: Kimberly-Clark does not typically provide direct healthcare services as a core aspect of its business. However, it does offer healthcare products under its brand portfolio, which includes items like medical gloves and protective wear used in various healthcare settings. The company primarily focuses on consumer products in personal care and hygiene, and while it may collaborate with organizations in the healthcare sector, it is not a traditional healthcare provider. Potential Healthcare Cost Increases for Kimberly-Clark in 2026: As we approach 2026, Kimberly-Clark and its consumers may face significant increases in healthcare costs due to anticipated steep hikes in health insurance premiums. The Affordable Care Act (ACA) marketplace is expected to see rate increases exceeding 60% in certain regions, driven by factors such as rising medical costs and potential loss of enhanced federal premium subsidies. Without intervention, these escalating premiums could drastically affect affordability for millions, with some policyholders at risk of experiencing up to a 75% rise in out-of-pocket expenses. This perfect storm of rising costs could pressure both Kimberly-Clark's employees and consumers, impacting the overall demand for its healthcare-related products. Click here to learn more

Kimberly-Clark employees must plan for longevity risk to secure a financial future: It's not about living longer but about thriving in those extra years, says Michael Corgiat, of The Retirement Group, a division of Wealth Enhancement Group. A strong strategy can be developed with a financial advisor that can adjust to longevity trends dynamically.

'Longevity is still affecting Retirement planning so Kimberly-Clark employees should review their financial strategies to ensure they can afford to age well,' says Brent Wolf of The Retirement Group, a division of Wealth Enhancement Group. A comprehensive approach including regular reviews with a financial advisor can limit the risks of longer lifespans,' he said.

In this article we will discuss:

1. Understanding Longevity Risk: Longevity advancements and their implications for retirement planning for Kimberly-Clark employees.

2. Financial Strategies Against Longevity Risk: Options for managing financial risks of living longer, including impact on social security and healthcare.

3. Withdrawal Rate Optimization & Retirement Timing: A Comparison. Strategies to maximize retirement income by selecting appropriate withdrawal rates and timing of social security benefits.

Kimberly-Clark employees should consider how likely wealthy people will live longer than average because of improvements in healthcare. In response, advisors must discuss longevity risk with clients. The report said women know more about longevity than men do, 43% to 32% of women demonstrating knowledge. Director of the school's Global Financial Literacy Excellence Center and economist at George Washington University, Annamaria Lusardi, said it was a.

While stock market risk and inflation along with healthcare costs might concern Kimberly-Clark employees, research shows longevity is the biggest risk to a retirement plan. The likelihood that resources run out before death determines longevity. Because wealthy people live longer than average people, longevity risk is rising and income products to hedge this risk are scarce. and a report from the Center for Retirement Research at Boston College says living longer means higher costs. Fewer retirees have the lifetime income security of a defined benefit pension and it can be difficult to estimate secure withdrawal rates from portfolios under economic and individual conditions.

Kimberly-Clark employees considering whether social security provides some security should understand that it replaces only a small share of pre-retirement income for affluent households. Such replacement rates constitute program reforms from 1983. With 33% of men and 50% of women in their mid-50s living to age 90 or older, advisors are increasingly counseling clients on longevity risk.

Kimberly-Clark employees should also consider how longevity risk adds inflation. This is illustrated by Bill's grocery buying in retirement at a constant inflation rate of 3%. Today Bill spends USD 100 on provisions, at his expected lifespan he will have spent USD 222. He would pay USD 257.51 for groceries at age 94. It rose by two and a half times since he retired. When his retirement income did not increase, Bill would immediately start cutting food costs. Inflation risk plus longevity risk make Bill's retirement even more problematic. Thankfully, you can reduce longevity risk through financial strategies. For possible financial strategies call The Retirement Group.

The Longevity Discussion

Kimberly-Clark employees needing financial advice should call a professional who values longevity. And many advisors don't take clients through a full discussion of longevity, said Surya Kolluri, director of the TIAA institute. Rather than a nuanced discussion of probabilities, advisors use an actuarial assumption because it is a topic of interest. Adults only understand longevity at 37%, with boomers at 44% and the silent generation at 45%, women at 43% and men at 32%. Kolluri primarily said so. This links to the longevity topic and allows advisors to communicate with couples about their lifespan.

It allows the advisor to request a conversation with both spouses on the subject if the customer is a male, and have a more open-minded, attentive discussion. TIAA-GFLEC found that general financial literacy, retirement preparedness and longevity literacy were related. Employees of Kimberly-Clark should ask how retirees who know little about life expectancy are less likely to save for retirement while working. They also displayed ignorance of withdrawals from retirement savings.

Conclusions about longevity from TIAA also reflect historical trends. In 2020, the Boston Center for Retirement Research published a study contrasting measurable versus perceived risk. Risks from longevity, health care costs, stock market inflation, family caregiver need and changes in public policy were evaluated. In contrast to longevity, virtually all respondents cited the stock market as the primary cause of high risk.

A study by the Society of Actuaries found only 13% of Kimberly-Clark employees are aware of longevity risk and how it could affect their retirement. It is called longevity risk, because people live longer than expected. This ignorance highlights the need to discuss longevity risk with financial advisors and consider it as part of retirement planning. Understanding how longer lifespans and sustainable income through retirement might affect Kimberly-Clark employees may help them make better decisions and limit the risks of longevity risk.

Social Security Applications

Also for the Kimberly-Clark:

how longevity research might reframe dialogues with clients about when to file social security claims. Many advisors tackle this by performing a break-even analysis, determining when total lifetime benefits would become equal or greater by delaying a claim than by claiming earlier. Break-even analysis is widely used, but Kimberly-Clark employees might benefit from reviewing its limitations. Among the most important is nobody knows how long they will survive. Social Security break even analysis is a return analysis that obscures its value as longevity insurance. Even relatively affluent Kimberly-Clark retirees may exhaust their savings at old age, making a maximum social security benefit extremely valuable.

Kimberly-Clark employees and retirees might want to consider that delaying benefits claims helps most households. Almost all households saw positive trends in the last decade. Fewer retirees file at age 62 and most file at full retirement age. Kimberly-Clark employees should also consider that FRA at age 70 is worth 76% more in monthly income than at age 62. Also, remember that delayed claims will become increasingly important. Social security will replace less of the pre-retirement income for younger employees than for boomers and Gen-Xers. This reflects 1983 social security reforms that raised the full retirement age to 67 from 65. For those born after 1960 the FRA is 67 years old. An increase in the FRA annually cuts benefits by about 6.5%.

And employees of the Kimberly-Clark must consider rising healthcare costs. Rising asset values may lead early retirees to apply for Social Security benefits at age 62 so they have more cash on hand before Medicare eligibility at age 65. Kimberly-Clark employees also should know that settling for lower benefits to access funds earlier could leave them short in retirement if they do so. This is because the permanently reduced payments can not keep pace with rising medical costs. Those born 1960 or later who begin receiving Social Security benefits at age 62 receive an estimated 30% less than those who begin at age 67.

Withdrawal Rates/Life Expectancy.

In discussions with clients regarding secure withdrawal rates longevity is often discussed as a way of prolonging the retirement portfolio life. For rules of thumb for drawdown rates, this is a very complex topic and one which retirees pore over with endless debate. Latest Morningstar study on safe drawdown rates recommends starting at 3.8% for retirees wanting a fixed real withdrawal over a 30-year period. That number exceeds Morningstar's recommended 2021 secure drawdown rate of 3.3%. That disparity is rooted in stock valuations being lower last year and bond yields rising. The low stock price also makes investors more confident that long-term returns are possible, Morningstar found. Return expectations dropped during the bull market of 2019 to 2021. Employees of Kimberly-Clark should also understand how higher bond yields allow bond investors to build portfolios that return more than the stock market.

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A third factor is that aggressive equity allocation does not improve safe starting withdrawal rates. Equities offer a higher long-term return than safer investments but volatility and the possibility of a share price decline have to be considered too. That view suggests balanced portfolios produce the highest withdrawal rates for Kimberly-Clark employees. Those considering retirement must be willing to alter their expenditures over time. Spending in retirement with flexibility ensures assets last a lifetime, and upward adjustments allow retirees to enjoy assets that would be nonexistent under an inflexible spending system. Kimberly-Clark retirees unsure when to start receiving social security benefits should seek professional financial advice. Call the retirement Group for a free cash flow analysis and talk with a financial advisor about how to hedge longevity risk in Retirement.

Imagine your retirement journey as a marathon whose finish line marks a successful retirement. Like a race there are hurdles to overcome and for Kimberly-Clark employees the biggest obstacle to retirement success is longevity. Think of longevity as an unexpected stretch in the race that tests your endurance. You live longer than necessary to pay for your retirement, and without proper planning you could run out of resources before the race ends. As a marathon runner trains and prepares for the distance, so too must a financial strategy that takes into account longevity risk. Together with a financial planner, you can create a plan for handling the extra strain of a longer life while still having enough money for retirement while you race.

Sources:

1. Newman, P., and Klas, N. 'The New Longevity: Financial Planning for a Longer Life.' J.P. Morgan, 1 Apr. 2024,  www.jpmorgan.com .

2. Bodnar, Janet. 'Make Longevity Risk Part of Your Retirement Plan.' Kiplinger, 7 Sep. 2024,  www.kiplinger.com .

3. What is Longevity Risk? How to Avoid Running Out of Money in Retirement.' Wealthtender, 2024, wealthtender.com.

4. Longevity Risk: How to Prepare Your Finances for a Longer Life Expectancy.' Entrepreneur, 2024,  www.entrepreneur.com .

5. A New Map for Financial Longevity Planning.' Morningstar, 2024,  www.morningstar.com .