Navigating Retirement: Annuities vs. IRA Withdrawals for Stanley Black & Decker Employees

Healthcare Provider Update: Healthcare Provider for Stanley Black & Decker Stanley Black & Decker primarily utilizes Aetna as their healthcare provider for employee benefits. Potential Healthcare Cost Increases in 2026 In 2026, Stanley Black & Decker employees are likely to face significant increases in healthcare costs due to escalating premiums in the Affordable Care Act (ACA) marketplace. With several insurers projecting hikes of over 60%, the financial burden on employees may intensify as many companies plan to transfer more healthcare expenses to their workers. Additionally, if enhanced federal subsidies are not renewed, millions of enrollees might see their out-of-pocket premiums rise by more than 75%, placing further strain on household budgets. As a result, employees need to proactively review their health plans and consider strategies to mitigate these impending cost increases. Click here to learn more

There are just a couple of things almost all Stanley Black & Decker 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 Stanley Black & Decker 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 Stanley Black & Decker retiree about 30 years of retirement income.

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

As life expectancies increase, Stanley Black & Decker 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 Stanley Black & Decker.

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.