Navigating Retirement: Annuities vs. IRA Withdrawals for Beazer Homes USA Employees

Healthcare Provider Update: Beazer Homes USA provides healthcare benefits through its association with major insurance carriers, though the specific healthcare provider is not explicitly mentioned. However, typical providers for many such companies often include national insurers like UnitedHealthcare, Blue Cross Blue Shield, or Cigna, underscoring the importance of verifying the exact plan through the company's HR resources or internal communications. As we look ahead to 2026, Beazer Homes USA employees should anticipate significant healthcare cost increases. With premiums for Affordable Care Act (ACA) plans projected to rise sharply-some states facing hikes over 60%-the burden will likely shift to employees. Many employers, including Beazer, may respond to escalating healthcare expenses by raising deductibles and out-of-pocket maximums, potentially heightening the financial strain on workers. Proactive engagement with benefit planning and understanding these impending changes will be crucial for employees to navigate their healthcare options effectively. Click here to learn more

There are just a couple of things almost all Beazer Homes USA retirees need when they hit retirement: predictable income and protection against a cluster of risks, which include longevity risk, performance risk and sequence-of-returns risk.

In the past we have seen retiring Beazer Homes USA employees utilize the “4% rule,” where retirees take annual withdrawals start at 4% of the entire portfolio and increase with inflation. They then keep the remainder of the portfolio with at least 50% invested in equities. Based on historical data, this would give a Beazer Homes USA retiree about 30 years of retirement income.

As the economy constantly changes, a number of factors may force prospective Beazer Homes USA retirees to revisit the 4% rule. It may be worth considering annuities as an alternative.

As life expectancies increase, Beazer Homes USA retirees need to prepare for expenses over a longer time frame. In the past we would plan for a 15 to 20 year retirement, but now we need to prepare for a 30 to 35 year retirement. What is available to assist meeting the 35-year time frame?  

The annuity strategy can assist with a few of the pitfalls we see in the 4% rule. For example:

If you need $50,000 per year in retirement and need that for 30 years, you may need $1.2 million in fixed income at a 3% interest rate. BUT if you look to fund $50,000 for 30 years, you can cover that expense with $800,000 by choosing the annuity option.

The other pitfall with the 4% rule is that it may not reflect a client’s risk tolerance. When you are accumulating assets, you can afford more volatility and can take on more risk than when in the retirement and withdrawal phase after leaving Beazer Homes USA. 

Also, should we see a drop in the market, you would be able to reduce your income using the 4% rule, which you cannot do if you choose an annuity option.

 

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