Navigating Retirement: Annuities vs. IRA Withdrawals for Marriott Vacations Worldwide Employees

Healthcare Provider Update: Healthcare Provider for Marriott Vacations Worldwide Marriott Vacations Worldwide offers health insurance plans through various providers, primarily partnering with larger insurers such as UnitedHealthcare and Cigna to provide comprehensive coverage for their employees. These providers deliver a range of healthcare services, from traditional medical insurance to specialized coverage options. Potential Healthcare Cost Increases in 2026 As Marriott Vacations Worldwide employees navigate the evolving healthcare landscape, they must prepare for significant premium hikes anticipated in 2026. With the potential expiration of enhanced Affordable Care Act (ACA) subsidies, many workers could face out-of-pocket costs rising by up to 75% for their health plans. This surge, paired with escalating medical expenses, is expected to strain household budgets, particularly for retirees and those nearing retirement. Therefore, being proactive in assessing healthcare options and budgeting is essential to mitigate the impending financial impact. Click here to learn more

There are just a couple of things almost all Marriott Vacations Worldwide 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 Marriott Vacations Worldwide 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 Marriott Vacations Worldwide retiree about 30 years of retirement income.

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

As life expectancies increase, Marriott Vacations Worldwide 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 Marriott Vacations Worldwide. 

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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