Navigating Retirement: Annuities vs. IRA Withdrawals for Goodyear Tire & Rubber Employees

Healthcare Provider Update: Healthcare Provider for Goodyear Tire & Rubber Goodyear Tire & Rubber typically partners with various health insurance providers to deliver employee healthcare benefits. Notable providers often include major national insurers like UnitedHealthcare, Anthem, and Aetna, among others. Specific provider information may vary by location and employee plan. Potential Healthcare Cost Increases for Goodyear in 2026 As Goodyear Tire & Rubber braces for anticipated healthcare costs in 2026, employees should prepare for substantial premium hikes linked to the Affordable Care Act (ACA). With many states expecting increases exceeding 60% and the potential expiration of enhanced federal subsidies, Goodyear may introduce adjustments to benefit plans to mitigate rising expenses. Furthermore, the broader trend of increasing medical costs along with changes in plan design could mean that employees face a larger portion of out-of-pocket healthcare expenses, necessitating careful evaluation of their benefits and cost-management strategies. Click here to learn more

There are just a couple of things almost all Goodyear Tire & Rubber 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 Goodyear Tire & Rubber 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 Goodyear Tire & Rubber retiree about 30 years of retirement income.

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

As life expectancies increase, Goodyear Tire & Rubber 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 Goodyear Tire & Rubber. 

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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