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

Kraft Employees: Test Your Knowledge of Financial Basics

Healthcare Provider Update: Healthcare Provider for Kraft Kraft Heinz Company primarily offers its employees a healthcare plan through the Aon Health Solutions, which oversees benefits and health resources for the company. As a sizable employer, Kraft provides a variety of health plans, typically including comprehensive medical, dental, and vision coverage. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are anticipated to surge significantly for Kraft employees, paralleling broader trends across the Affordable Care Act (ACA) marketplace. With health insurance premiums projected to increase by an average of 18%-and in some states exceeding 60% due to the potential expiration of enhanced federal premium subsidies-many workers could face a financial burden. This perfect storm of rising medical costs and shifting insurance policies signals an increase in out-of-pocket expenses, revealing the critical need for strategic planning among employees to manage their healthcare finances effectively. Click here to learn more

Retirement planning is essential at any stage - and especially for Kraft employees trying to navigate changing financial landscapes, says Michael Corgiat of the Retirement Group, a division of Wealth Enhancement Group. So start early, diversify and meet with a financial advisor regularly to review your retirement plan and ensure it's working for you long term, 'she said.'

The NCOA survey shows that robust retirement planning is absolutely necessary for Kraft employees, says Brent Wolf of the Retirement Group, a division of Wealth Enhancement Group. Comprehensive planning now can secure your financial comfort in retirement - so evaluate and adjust your plans with the help of a seasoned financial advisor, 'she said.'

What is it that we will discuss here:

1. Early Retirement Planning - Why It's Important:Learn why planning your retirement early can protect your nest egg financially when you reach your golden years.

2. Personal Finance Fundamentals: A quick exam covering basic personal finance knowledge to gauge your readiness for future financial challenges.

3. Retirement Planning Strategies: Information about effective retirement planning including investment diversification and understanding different retirement accounts.

A survey by the National Council on Aging in 2021 found that 60% of adults over age 60 have not created a retirement plan. This is surprising considering most of those age groups are approaching or retired. Making a retirement plan can prepare people for costs associated with retirement such as healthcare and living expenses. With the proper plan, retirees can grow their retirement savings and have enough to last them through the golden years.

So important is retirement planning - so we created a test to see how well you understand personal finance. This short exam measures your basic knowledge. Learn about our Kraft clients below.

Questions

How much liquid, low-risk savings should you have for emergencies?

A. One or three months' worth of expenses.

B. Three or six months' worth of expenses.

C. Six or twelve months' worth of expenses.

D. It depends

Divestiture can remove risk from your portfolio.

A. True

B. False

What is a key benefit of a 401(k) plan?

A. Yes, you can withdraw money at any time for things like a new car purchase.

B. You pay no tax on some of your compensation through the plan.

C. You might get an employer match - free money - if you qualify.

D. None of the above.

Not all of the money in a bank or credit union account is protected.

A. True

B. False

Which of the following is typically the best long-term strategy for you.

A. Investing as conservatively as possible to limit loss possibility.

B. Investing equal amounts in stocks, bonds, and cash investments.

C. Put all of your money in stocks.

D. Too little info.

What does APR stand for in debt speak?

A. Actual percentage rate B. Annual personal rate C. Annual percentage rate D. Actual personal return

The safest investments are mutual funds.

A. True B. False

I've got time to save for my retirement from Kraft. That is not something I have to think about right now.

A. True B. False

Which benefits are associated with a Roth IRA?

A. A Roth IRA may pay taxes-free in retirement. B. Investors can deduct their Roth IRA contributions from taxes. C. Any reason for withdrawal by investors after five years of holding is tax-free. D. None of the above.

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What is considered good credit?

A. 85 or above

B. 500 or above

C. B or above

D. 700 or above

Answers

D. It is conventional wisdom to put aside three to six months of living expenses in liquid savings vehicles such as a bank savings account or money market account. But that depends on your specific situation. With a job with Kraft that is secure, your spouse's job that is fairly secure (for our Kraft clients who are married) and other assets, you may only need three months of emergency savings. Or you could be a business owner in a volatile industry and need a year's worth of cash or more to weather rough times.
B -False. Diversification is a sensible investment strategy that spreads your investment dollars across a variety of securities and asset classes but it does not eliminate risk nor guarantee a profit for our Kraft clients. You keep losing money.
C. Some employers offer a matching program, which is like getting free money to invest. If the Kraft plan matches your contribution, contribute at least enough to take advantage of that. Some matching programs have a vesting schedule so you gradually get the right to match contributions and earnings on those dollars. If you selected B, you may find this a little deceptive. Contributions to traditional 401(k) plans are tax-deferred but not eliminated entirely. You pay taxes on your contributions and earnings when you take a distribution from the plan. Also, distributions taken before age 59½ could be subject to a 10% tax penalty. Exceptions exist.
A -- True. The Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Share Insurance Fund (NCUSIF) each insure deposits in federally insured banks and credit unions up to USD 250,000 per depositor, per ownership category (single account, joint account, retirement account, trust account), per insured institution. Neither the FDIC nor NCUSIF covers losses in equities, bonds, mutual funds, life insurance policies, annuities or municipal securities. They do not also insure safe-deposit box contents or Treasury bill investments.
D. We recommend our Kraft clients consult a financial professional before making a decision about a strategy. Among other things, he or she will consider your objectives, risk tolerance, and time horizon when recommending an appropriate investment strategy for you.
C. The acronym APR stands for annual percentage rate. This is the rate at which credit card, mortgage, and other loan issuers inform borrowers the approximate annual cost of borrowing funds minus fees and costs. The APR differs from the declared interest rate on a loan, which is usually lower than the APR because fees and other costs are not included. We tell Kraft clients to shop the APRs of different loans to make sound financial decisions. However, compare the APRs for fixed-rate loans versus adjustable-rate loans for mortgages carefully because the APR is not the maximum interest rate a loan may charge.
B -- False. The capital of many investors is pooled into a basket of securities that are invested for some particular end. With this 'diversification,' mutual funds are usually a good form of risk management. But we remind our Kraft clients that the inherent risk of any mutual fund depends largely on the securities categories that it holds. Pick a mutual fund carefully so its investment objective matches yours. Check out the prospectus for the fund - it contains important information about risks, fees and expenses, and details about specific holdings.

B -- False. Retirement is decades away but you can invest now for retirement. This is because small amounts like USD 50 per month can add up because of compounding - when your returns actually earn returns themselves. That means your money works for you!
A. The biggest advantage to a Roth IRA is the tax-free retirement income it provides. The contributions are subject to income limits & are not deductible on a tax basis. After five years of holding, withdrawals are allowed if 'qualified.' Exceptions to this include withdrawals made after the account holder dies, becomes disabled, or turns 59 and a half years old, or when the account holder withdraws up to USD 10,000 (lifetime-maximum) for a first home purchase.
D. No organization generally defines what constitutes a 'good' credit score because credit scores are calculated differently by different organizations. Generally, though, a credit score of 700 or higher would likely go in the favor of a credit applicant.

Retirement planning is like tending a garden. So much as a gardener would choose the right tools, seeds, and soil for his or her garden, retirees and those approaching retirement should plan for a comfortable retirement with the right investments and health care. Both take patience, attention to detail, and regular maintenance to work properly. Like a garden that makes the gardener happy and fulfilled, a planned retirement can provide security and fulfillment for those who have worked hard all their lives.

Sources:

National Council on Aging. 'Addressing the Nation's Retirement Crisis: The 80%.' National Council on Aging , 30 Aug. 2024, www.ncoa.org .
TIAA Institute-GFLEC. 'Financial Literacy and Retirement Readiness among Workers Age 40 and Older.' TIAA Institute-GFLEC Personal Finance Index , 2022, www.tiaa.org .
Schroders. 'U.S. Retirement Survey 2021.' Schroders , 18 Mar. 2021, www.schroders.com .
National Council on Aging. 'Get the Facts on Older Americans.' National Council on Aging , 2023, www.ncoa.org .
AARP. 'New Retirement Survey.' AARP , 2024, www.aarp.org .

How does the pension plan offered by Kraft Foods Global, Inc. compare to standard retirement plans in terms of employer contribution allocation, and what specific policies should employees be aware of when considering their retirement options through Kraft Foods Global, Inc.?

Kraft Foods Global, Inc. Pension Plan vs. Standard Retirement Plans: The pension plan offered by Kraft Foods Global, Inc. operates as a defined benefit plan, which allocates employer contributions based on years of service and compensation, ensuring steady retirement income based on a formula. This contrasts with standard retirement plans like 401(k)s, where contributions are often employee-driven and subject to market performance. Employees should understand that the guaranteed nature of a pension provides long-term stability, but they must consider the plan’s specific terms regarding eligibility, vesting, and distribution options.

In what ways do the eligibility requirements for contributions to the retirement plans at Kraft Foods Global, Inc. align with IRS regulations for 2024, and what should employees know about these rules when planning their retirement funds?

Eligibility and IRS Regulations for 2024: The eligibility requirements for Kraft Foods Global, Inc.’s retirement plan align with IRS regulations by requiring one year of service for plan participation, with no minimum age requirement. This is typical for defined benefit plans and is in line with IRS standards for qualified plans. Employees planning their retirement funds should ensure they meet the service requirements and understand that contributions are employer-funded rather than employee-driven, unlike other retirement plans that follow IRS contribution limits(Kraft Foods Global Inc_…).

Considering the defined benefit plan structure of Kraft Foods Global, Inc., how are distributions processed at retirement, and what potential tax implications should employees consider when deciding between a lump sum or annuity option upon retirement?

Distribution Options and Tax Implications: Kraft Foods Global, Inc.’s defined benefit plan offers both lump sum and annuity options for retirement distributions. Employees must carefully consider tax implications: lump sums may be subject to immediate taxation, while annuity payments spread income over time, potentially offering tax advantages. Employees should evaluate their financial needs and tax situation to choose the most suitable option for their retirement(Kraft Foods Global Inc_…).

How does Kraft Foods Global, Inc. ensure the stability and sustainability of its retirement funds, known as the retirement plan funding levels, and what measures are in place to protect employees' interests in case of economic downturns?

Retirement Plan Stability and Economic Downturns: Kraft Foods Global, Inc. ensures the stability and sustainability of its retirement funds through a well-funded pension plan, with funding levels reported at over 100%. This level of funding offers protection against economic downturns, safeguarding employee interests. The company also maintains a significant fidelity bond, providing additional security for plan participants in case of adverse financial events(Kraft Foods Global Inc_…).

What resources are available to employees of Kraft Foods Global, Inc. for financial planning assistance related to their retirement, and how can knowledge of these resources influence their decisions regarding retirement savings and benefits?

Financial Planning Resources: Employees of Kraft Foods Global, Inc. have access to various resources, such as retirement plan summaries and consultations with financial planners. These tools can help employees make informed decisions regarding their retirement savings and benefits, potentially influencing their strategies for maximizing contributions and taking advantage of plan features like early retirement options(Kraft Foods Global Inc_…).

How should employees at Kraft Foods Global, Inc. approach the process for requesting a distribution from their retirement plan, and what specific information is required to expedite this process effectively?

Requesting a Distribution: Employees at Kraft Foods Global, Inc. must contact the plan administrator to request a distribution. Providing accurate personal information, retirement dates, and preferred payment methods is essential to expedite the process. It’s crucial to ensure that all documentation is complete to avoid delays(Kraft Foods Global Inc_…).

How does the participation in the additional retirement plans offered by Kraft Foods Global, Inc., such as the Thrift Investment Plan, benefit employees in the context of overall retirement savings and IRS contribution limits for 2024?

Additional Retirement Plans and IRS Contribution Limits: Participation in Kraft Foods Global, Inc.’s Thrift Investment Plan allows employees to enhance their retirement savings while adhering to IRS contribution limits for 2024. This plan complements the pension plan by offering a defined contribution option, giving employees the chance to maximize their overall retirement savings through a combination of employer contributions and personal investments(Kraft Foods Global Inc_…).

What communication channels does Kraft Foods Global, Inc. provide for employees to ask questions or seek clarification regarding their retirement benefits, and what should employees include in their inquiries to receive detailed answers?

Communication Channels for Retirement Benefits: Kraft Foods Global, Inc. provides clear communication channels through its HR department and plan administrators, where employees can ask detailed questions about their retirement benefits. It’s advisable for employees to include specific details in their inquiries, such as their years of service and expected retirement dates, to receive thorough responses(Kraft Foods Global Inc_…).

How do the overall retirement plan offerings at Kraft Foods Global, Inc. facilitate long-term financial security for employees compared to industry standards, and what unique features should employees leverage to maximize their retirement savings?

Maximizing Long-Term Financial Security: The retirement plan offerings at Kraft Foods Global, Inc. focus on long-term financial security by providing guaranteed income through its defined benefit structure. Compared to industry standards, this approach offers employees a more predictable and stable source of retirement income. Employees should leverage features like early retirement options and understand their full benefit potential to optimize their financial outcomes(Kraft Foods Global Inc_…).

What strategies should employees at Kraft Foods Global, Inc. employ to ensure they remain informed about ongoing changes in retirement planning regulations and plan offerings as they approach retirement, especially in light of any adjustments to IRS rules or company policies?

Staying Informed on Retirement Plan Changes: Employees should stay informed about ongoing changes in retirement planning regulations and company policies by regularly reviewing updates from Kraft Foods Global, Inc. and keeping track of IRS adjustments. Attending company-provided financial planning seminars and consulting with financial advisors can help ensure that employees are well-prepared for retirement, especially as IRS rules or plan offerings evolve(Kraft Foods Global Inc_…).

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

Kraft Heinz offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan features company matching contributions and various investment options, including target-date funds and mutual funds. Kraft Heinz provides financial planning resources and tools to help employees manage their retirement savings.

Kraft Heinz is undergoing a major restructuring in 2024, including layoffs and changes to its employee benefits to improve cost efficiency. The company continues to focus on its core food and beverage businesses. Understanding these changes is crucial in today's economic and business landscape, as they impact the company's strategic priorities and financial health.

Kraft Heinz includes RSUs in its employee compensation packages, which vest over a specific period and convert into shares. Stock options are also provided, enabling employees to purchase shares at a predetermined price.