Navigating Retirement: Annuities vs. IRA Withdrawals for Owens Corning Employees

Healthcare Provider Update: For Owens Corning, the healthcare provider managing employee benefits is largely influenced by market dynamics and company-specific strategies. As reported, Owens Corning employees may face significant healthcare cost increases in 2026 due to a combination of factors. The anticipated sharp rise in Affordable Care Act (ACA) premiums-potentially exceeding 60% in some states-will likely lead the company to adjust its benefit structures, including higher deductibles and out-of-pocket maximums. With many large firms adopting similar approaches to manage rising healthcare expenses, Owens Corning employees should be proactive in understanding upcoming benefit changes and optimizing their plan selections to mitigate the impact of rising costs. Overall, 2026 could see employees bearing a larger share of healthcare expenses, reflecting broader trends in the insurance marketplace. Click here to learn more

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

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

As life expectancies increase, Owens Corning 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 Owens Corning. 

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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