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3 Surprising Investing Ideas for Avaya Holdings Employees in 2025

Healthcare Provider Update: Avaya Holdings offers health insurance coverage to its U.S. employees through Aetna-administered plans. Benefits include medical, dental, vision, and life insurance, along with access to Health Savings Accounts (HSAs), disability coverage, and preventive care services. Avaya Holdings Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

'For Avaya Holdings employees, the rapid market rebound in 2025 reinforces the value of disciplined, research-driven decision-making—especially when considering sector trends like tech's recovery and the structural challenges in consumer staples.” – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'The 2025 market turnaround highlights how Avaya Holdings employees can benefit from focusing on long-term sector dynamics—such as technology’s renewed potential—rather than reacting to short-term volatility.” – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

How the rebound in U.S. equities may still offer opportunities for long-term investors.
Why technology stocks are regaining momentum following a valuation reset.
The structural challenges facing consumer staples despite their traditional defensive appeal.

The first seven months of 2025 showcased how difficult it can be to time investment decisions during a year of sharp economic pivots and sudden market reversals. Early in the year, global tariff announcements sent shockwaves through markets, causing the S&P 500® to fall 19% from its mid-February highs, ¹ narrowly sidestepping bear market territory. But recovery followed quickly. The index rebounded roughly 30% from its April 8 low. ² For Avaya Holdings employees with exposure to equity markets, this swift rebound highlights the challenge of reacting to short-term volatility instead of maintaining a long-term perspective.

While trade-related uncertainty remains, a broader question has emerged: Has the rebound outpaced fundamental growth? Some analysts believe market valuations are stretched, while others—such as Fidelity’s Denise Chisholm—suggest that specific sectors, particularly technology, still present potential opportunities. Chisholm, Fidelity’s Director of Quantitative Market Strategy, points to three investing themes that could help Avaya Holdings retirees and employees make more informed decisions as the year continues. ³

1. U.S. Stocks Could Keep Outperforming

Following the April rally, many began scrutinizing market valuations. Despite concerns that stocks were overvalued before the downturn and may be even more so now, Chisholm’s historical analysis of 19%+ declines shows limited connection between elevated valuations during pullbacks and future performance. This insight may be particularly useful for Avaya Holdings employees with retirement accounts invested in broad-market indexes.

A more revealing factor is corporate earnings expectations. “Net earnings revisions”—the difference between upward and downward analyst estimates—fell into the bottom 25% of their historical range in April. ⁴ Historically, this has been followed by an average 12% S&P 500 gain over the next 12 months, according to Haver Analytics and Fidelity data from 1977 through May 2025. ⁴

Another encouraging sign is the increase in real personal income earlier this year. For those at Avaya Holdings planning their post-career financial strategies, rising consumer income tends to support stronger corporate earnings. In fact, when real personal income rises, corporate earnings growth over the following year is similarly positive 85% of the time. ⁴

Credit markets offer another signal. The narrow spread between high-yield corporate bonds and U.S. Treasuries—often viewed as a proxy for investor sentiment—suggests continued optimism. For Avaya Holdings stakeholders tracking market health, this may reflect investor confidence in corporate profitability and credit conditions.

2. Technology Stocks May Take the Lead Again

Tech stocks experienced a correction in early 2025 after years of strong performance. This adjustment pushed their valuations—based on the forward price-to-earnings ratio relative to the broader S&P 500—into the historical median range. Historically, when this level is reached, tech stocks have outperformed the S&P 500 by 5% over the following 12 months. ⁴

For Avaya Holdings professionals considering sector allocation, this valuation reset may indicate an opening in technology. According to research from Fidelity and FactSet, when speculative tech names—typically viewed as high-risk—drop into the lowest 25% of historical valuations, the entire tech sector has a 79% chance of outperforming the broader market over the following year. ⁴

This combination of historical probability and relative value makes the tech sector worth close attention. The reset in prices could renew investor interest, especially if upcoming earnings results outperform expectations. Avaya Holdings employees managing portfolios may discover longer-term growth potential in parts of the market that have experienced recalibrated valuations.

3. The Underperformance of Consumer Staples

Consumer staples—companies producing essentials like food and household items—are often considered more stable holdings. During the early 2025 market dip, many investors shifted toward these stocks in search of consistency. However, Avaya Holdings retirees evaluating income-focused portfolios may want to reassess the sector’s outlook.

Although valuations have returned to historical medians, consumer staples have not historically outperformed unless valuations reach the lower quartile. Data since 2000 show weak performance from mid-range valuation levels, especially compared to the tech sector’s behavior.

In addition, profit margins in the sector have steadily declined. By early 2025, margins were near two-decade lows, which may limit earnings growth. For Avaya Holdings employees reviewing income strategies in retirement, these long-term pressures may reduce the appeal of the sector—even if consumer demand remains relatively consistent during downturns.

A Prospective View for Avaya Holdings Employee Portfolios

After a dramatic rebound in 2025, many investors are weighing their next steps. For Avaya Holdings employees balancing growth potential and downside exposure, historical trends may offer useful insights. The mid-range valuations in technology, rising real income, and contrarian earnings signals suggest that U.S. equities may still provide room for further advancement.

Sector allocation decisions may play an increasingly important role. Technology could benefit from valuation resets and performance trends, while consumer staples may face continued margin pressure. Avaya Holdings retirees exploring future-focused allocations may want to pay attention to these sector-specific developments.

Chisholm’s findings offer a research-based perspective to assess these shifts. She emphasizes evaluating valuation resets, earnings expectations, and credit spreads rather than reacting to market headlines. For Avaya Holdings stakeholders, this measured approach may offer a clearer path through ongoing market uncertainty.

In June 2025, J.P. Morgan Asset Management highlighted dividend-paying stocks—particularly in health care and utilities—as appealing options during late-cycle environments due to their consistent cash flow. ⁵ They also noted that infrastructure investments may help offset inflation risks, and that short-duration bonds yielding over 5% can provide income while limiting interest rate sensitivity. These three ideas—dividends, infrastructure, and short-term bonds—may contribute to a more balanced approach for Avaya Holdings retiree portfolios.

Key Takeaway for Avaya Holdings Employees

Explore the major investment themes of 2025: U.S. stock momentum, shifting tech valuations, and structural concerns in consumer staples. Learn how trends in net earnings revisions, bond spreads, and income growth can inform longer-term planning. Historical data from Haver Analytics, FactSet, and Bloomberg, along with Chisholm’s sector analysis, may provide meaningful context for Avaya Holdings employees navigating today’s complex market environment.

Analogy:

Today’s investment environment for Avaya Holdings employees is like planning a well-balanced retirement meal: short-duration bonds are the refreshing drink—low volatility and steady; infrastructure funds are the hearty side—resilient in tough economic climates; and dividend stocks serve as the main course—reliable and consistent. Like a nourishing plate, each component plays a distinct role in adjusting to evolving market conditions.

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Sources:

1. Yahoo!Finance. ' Analyst resets S&P 500 forecast for rest of 2025 ,' by Todd Campbell, 20 July 2025.

2. Quoniam. ' Market commentary equities: Low single-digit returns in 2025, but massive undercurrents ,' by Mark Frielinghaus, 10 July 2025.

3. Fidelity. ' 4 investing ideas for the rest of 2025 ,' by Denise Chisolm, 4 June 2025.

4. Fidelity. ' Q3 2025 Quarterly Sector and Investment Research Update ,' by Denise Chisolm, 28 July 2025.

5. J.P. Morgan Asset Management. ' Mid-Year Investment Outlook 2025: Comfortably Uncomfortable ,' by J.P. Morgan Chase & Co., 5 May 2025.

How can employees at Avaya Inc. ensure they are adequately prepared for retirement, considering the various types of pensions available under the Avaya Inc. Pension Plan? What steps should be taken to understand the key features of the pension plan, and how can they assess their individual needs relative to the benefits offered by Avaya Inc.?

Preparation for Retirement at Avaya Inc.: Employees at Avaya Inc. should first review the company’s Summary Plan Description for the pension plan details, which outline the types of pensions available and the processes for claiming them. It's crucial to understand the different pension types—service, deferred vested, and disability pensions—each with specific eligibility criteria and benefits. To prepare adequately, employees should estimate their pension benefits using tools provided by Avaya Inc., attend financial planning seminars offered by the company, and consider consulting with a financial advisor to assess how the pension fits into their broader retirement strategy.

Can you elaborate on the service pension eligibility criteria set by Avaya Inc.? How does age and credited service interact with this criterion, and what unique circumstances should employees at Avaya Inc. be aware of that may affect their eligibility for a service pension?

Service Pension Eligibility Criteria at Avaya Inc.: Eligibility for a service pension at Avaya Inc. is determined by age and credited service. Employees qualify at any age with 30 years of service, at age 50 with 25 years, at 55 with 20 years, and at 65 with 10 years. It’s essential for employees to understand that these criteria are strict; for instance, an employee aged 51 with 24 years of service does not qualify. Employees should plan their retirement age accordingly and consult with HR to confirm their credited service years.

What are the implications of early retirement under the Avaya Inc. Pension Plan? Employees at Avaya Inc. who are considering early retirement should understand both the benefits and potential losses associated with taking retirement benefits before the age of 55.

Implications of Early Retirement: Opting for early retirement at Avaya Inc. can lead to reduced pension benefits, especially if retirement occurs before age 55 with less than 30 years of service. The plan applies an early commencement discount, reducing the pension by 1/2% for each month before age 55. Employees considering early retirement should carefully evaluate how the reduction impacts their financial stability and may want to strategize with HR or a financial advisor to mitigate the reduction's effect.

What is the process for employees at Avaya Inc. to claim a deferred vested pension, and what specific conditions must be met for them to initiate this process? Employees must be informed about the timeline required for claims as well as the potential impact of their age and service duration on their pension amounts.

Claiming a Deferred Vested Pension: To claim a deferred vested pension at Avaya Inc., employees must meet certain conditions, such as being vested and having terminated employment. The pension commencement generally aligns with reaching age 65 or upon earlier termination. Employees must contact the Avaya Pension Service Center to initiate the process, providing necessary documentation and adhering to specified timelines, ensuring they understand the impact of early commencement on their pension amounts.

In what ways does Avaya Inc. support employees returning to work after retirement? Specifically, how does reemployment affect the pension benefits that retirees receive? Employees should consider how their decisions to return to work may minimize or suspend their pension benefits.

Returning to Work Post-Retirement: If an employee at Avaya Inc. returns to work after retirement, their pension benefits might be suspended or reduced, depending on the terms outlined in the pension plan. This policy is intended to adjust benefits when retirees re-enter the workforce, potentially affecting their financial planning. Employees should verify the specific rules with the pension service center and consider the financial implications before deciding to return to work.

How does the Mandatory Portability Agreement (MPA) influence the retirement benefits of Avaya Inc. employees transitioning between positions in affiliated companies? Employees should understand how service credit is recognized and transferred under the MPA and its impact on their retirement planning.

Impact of the Mandatory Portability Agreement (MPA): The MPA affects Avaya Inc. employees transitioning between positions within affiliated companies, allowing for the transfer of service credits. This agreement is crucial for employees moving within the company structure, as it ensures that their pension benefits are maintained and accurately calculated based on cumulative service, fostering seamless transitions and sustained benefit accrual.

What key information should employees at Avaya Inc. know regarding their rights under the Employee Retirement Income Security Act (ERISA) as they navigate the pension benefit process? Understanding ERISA rights is crucial for employees to effectively advocate for their benefits and understand their protections.

Understanding ERISA Rights at Avaya Inc.: Employees at Avaya Inc. should be aware of their rights under the Employee Retirement Income Security Act (ERISA), which safeguards employees' benefits. Understanding these rights is essential for effectively managing their pension plans and ensuring they receive all entitled benefits. Employees should familiarize themselves with the claim and appeal procedures provided in the plan documents to advocate effectively for their rights.

How do survivor benefits work under the Avaya Inc. Pension Plan? Employees and their beneficiaries should be aware of the conditions under which these benefits are paid and how they can designate beneficiaries to ensure compliance with Avaya Inc. policies.

Survivor Benefits under Avaya Inc. Pension Plan: Avaya Inc.'s pension plan provides survivor benefits, which are crucial for employees to arrange financial security for their beneficiaries. Understanding the conditions under which these benefits are paid and how to designate beneficiaries properly ensures that the employees' families are protected in case of the employee's death.

Can you explain the significance of the Pension Benefit Guaranty Corporation (PBGC) in relation to the retirement benefits that employees of Avaya Inc. may expect? Understanding the role of the PBGC could help clarify what protections are in place for employees in the case of plan termination.

Role of the Pension Benefit Guaranty Corporation (PBGC): The PBGC plays a protective role for Avaya Inc. employees by ensuring that pension benefits are secure even if the plan faces financial difficulties. Employees should understand how the PBGC's coverage affects them, particularly in scenarios where the company’s pension plan might be terminated or underfunded.

If Avaya Inc. employees want to learn more about their pension benefits or have specific questions about the retirement process, who should they contact and what resources are available to them? This question prompts employees to engage with the Avaya Inc. Pension Service Center and access information crucial for their retirement planning.

Accessing Pension Information and Assistance: Employees seeking more information about their pension benefits or needing specific help regarding their retirement process should contact the Avaya Pension Service Center. This center provides detailed guidance, handles claims and appeals, and offers comprehensive support to ensure employees understand and can effectively manage their pension benefits.

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

Avaya Holdings has announced a major restructuring plan involving significant layoffs and changes to their benefits and retirement plans. The company is focusing on streamlining operations to improve profitability, which includes reducing its workforce and altering pension and 401(k) contributions for current employees.

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For more information you can reach the plan administrator for Avaya Holdings at 350 Mt Kemble Ave Morristown, NJ 7960; or by calling them at +1 908-953-6000.