Navigating Retirement: Annuities vs. IRA Withdrawals for Ovintiv Employees

Healthcare Provider Update: Healthcare Provider for Ovintiv Ovintiv utilizes several healthcare providers for its employees' health coverage, with a primary focus on large national insurers. Notable among these are UnitedHealthcare and Anthem, which are typically selected to offer comprehensive healthcare plans that cover a wide array of services including preventive care, emergency services, and specialty medications. Healthcare Cost Increases in 2026 In 2026, Ovintiv employees may face substantial increases in healthcare costs, primarily due to anticipated hikes in Affordable Care Act (ACA) market premiums, which are expected to rise by as much as 66% in some states. The projected expiration of enhanced federal premium subsidies, coupled with a medical cost inflation rate that surpasses general inflation, is likely to significantly increase out-of-pocket expenses. As a result, employees should proactively review their health benefits and consider strategic adjustments to mitigate the impact of these rising costs. Click here to learn more

The Q1 2026 energy crisis has introduced significant volatility into the retirement planning calculations of many Ovintiv professionals, reinforcing the importance of a diversified, inflation-aware retirement strategy that accounts for the cyclical nature of the energy sector.

Brent crude is trading near ~$107/barrel and WTI near ~$94/barrel as of March 2026, driven by the largest supply disruption in the history of global oil markets , the near-halt of tanker movement through the Strait of Hormuz.

LNG markets have been hit particularly hard, with European TTF near ~$16.90/MMBtu following Iran's attacks on the Ras Laffan LNG facility, which handles roughly 20% of global LNG production.

For Ovintiv employees approaching retirement, the current Q1 2026 market environment , defined by surging oil prices and geopolitical uncertainty , underscores the need for a carefully structured retirement income plan that balances growth potential with downside protection.

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

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

As life expectancies increase, Ovintiv 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 Ovintiv.

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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