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Becton Dickinson Retirement Roadmap: Creating Income Confidence Beyond the Paycheck

'For Becton Dickinson employees navigating retirement without the cushion of traditional pensions, income annuities may offer a practical way to structure consistent monthly income, helping to reduce stress around spending and reinforce confidence in long-term planning.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'For Becton Dickinson employees transitioning from a savings mindset to spending in retirement, establishing predictable income through annuities can help create a sense of control and clarity, empowering retirees to use their resources with greater confidence.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

How income annuities can help Becton Dickinson retirees create a consistent retirement income stream.
Why behavioral finance research shows retirees may spend more confidently with steady income.
The role annuities play in supplementing Social Security and addressing the decline of traditional pensions.

Creating a reliable income stream to support decades of life without a paycheck is a central focus of retirement planning for Becton Dickinson employees—not simply accumulating assets. Many retirees face the challenge of balancing lifestyle spending with the risk of running out of resources due to longer lifespans, market fluctuations, and inflation. One popular option is using annuities to help generate regular income. Income annuities, in particular, have been shown to reduce anxiety tied to portfolio withdrawals and support more confident retirement spending.

Studies on Retirement Spending Patterns

For Becton Dickinson retirees, shifting from saving to spending can be emotionally difficult. Research from the Retirement Income Institute (RII), ¹ a nonprofit in Washington, D.C., finds that uncertainty about portfolio longevity often leads to overly cautious spending. About one-third of retirees surveyed said they prefer to live off investment earnings alone, without touching principal—even when they have room in their budget for additional expenses like travel or dining.

This cautious mindset is frequently tied to concerns about longevity risk. Even Becton Dickinson retirees with large portfolios may feel uneasy without consistent income. According to RII, 60% of respondents said they would feel more comfortable spending if they received an extra $10,000 in annual income, compared to only 40% who favored a $140,000 increase in net worth. This illustrates the emotional and practical impact of consistent cash flow over portfolio size.

Traditional Retirement Income Sources Present Difficulties

In past generations, pensions and Social Security played a larger role in retirement income planning. However, fewer Becton Dickinson employees now retire with traditional defined benefit pensions. According to U.S. Bureau of Labor Statistics data, only 15% of private sector workers have access to such plans. ²

Meanwhile, the average Social Security benefit—$2,005 per month as of June 2025 ³ —often does not cover core expenses such as housing and health care.

Delaying Social Security benefits can help raise monthly income. Benefits increase by about 8% for each year postponed after full retirement age (67 for most), with those who wait until age 70 receiving monthly payments more than 24% higher than at 67.

Annuities as an Alternative to Private Pensions

With traditional pensions less common, annuities are gaining attention as a way for Becton Dickinson employees to establish consistent retirement income. Michael Finke, co-author of the RII study and professor at The American College of Financial Services, notes that annuities shift longevity and market risks to insurance providers. Fixed income annuities convert a lump sum into scheduled payments for life or a fixed term.

This consistent payment structure can help build confidence. Finke’s findings show retirees with annuities are about twice as likely to use their savings for enjoyment compared to those relying solely on investment accounts.

How Income Annuities Work

An income annuity involves an agreement with an insurance provider to deliver fixed payments in exchange for an upfront premium. Depending on the terms, payments may last for life or a specific period. Becton Dickinson retirees often appreciate that this income is unaffected by market performance.

Some common features that add value to income annuities include:

Cost-of-Living Adjustments (COLAs): Designed to align payments with inflation
Cash-Refund Options: Allow a payout to beneficiaries if the annuitant passes before the full value is paid

These features can offer greater peace of mind for retirees who are planning for inflation or family legacies.

Using Income Annuities Wisely in Retirement Planning

For those seeking stable cash flow, income annuities can help fund basic living expenses. Start by identifying which needs—housing, utilities, groceries—are covered by Social Security or other sources. Any gap may be addressed by annuity income.

With core costs accounted for, retirees may use remaining funds more freely for lifestyle choices such as travel, home improvements, or philanthropy—potentially enabling them to enjoy retirement more fully.

Limitations and Considerations

Although annuities offer predictable income, they come with trade-offs. After the “free-look” period, the lump sum invested is generally no longer accessible. This could be a concern for retirees who expect significant one-time expenses.

Additionally, annuity payments depend on the claims-paying ability of the issuing insurer. It’s important to review the strength of the insurer through independent agencies such as AM Best, Moody’s, or S&P Global.

Because annuities can be complex and may involve tax consequences, Becton Dickinson employees are encouraged to consult financial professionals who can help structure a retirement plan that integrates annuities, Social Security, and other sources of income.

More General: Spending Confidence and Behavioral Finance

Annuities may offer more than just income. They can act as psychological anchors. Behavioral finance research suggests that predictable income can reduce hesitation around spending. ⁴ For retirees, even those with strong portfolios, the presence of steady payments may reduce worry about depleting their assets.

This predictability may help retirees focus more on enjoying their time—whether it’s with family, traveling, or pursuing goals—rather than closely monitoring their investments.

In Conclusion

Annuities are attracting renewed attention among retirees looking for consistent income and emotional reassurance. In an environment where traditional pensions are rare and markets are volatile, income annuities may help fill essential budget needs.

For Becton Dickinson employees, converting a portion of their savings into annuity income may help support consistent lifestyle spending and reduce financial stress in retirement.

Takeaway:

Learn how annuities may reduce the risk of running out of retirement savings, offer predictable payments, and support more confident spending. This article draws from research by the Retirement Income Institute and The American College, comparing annuities to pensions and exploring ways to handle market and longevity risks effectively.

Analogy:

Planning for retirement is like embarking on a cross-country road trip without a precise weather forecast or final destination. Your retirement savings are the fuel, but without a reliable guide, each turn may feel uncertain. For Becton Dickinson employees, annuities can serve as the GPS—offering structure, regular updates, and peace of mind. With consistent income to cover the basics, retirees are free to explore life’s scenic routes—whether that means traveling, pursuing passions, or simply relaxing—without constantly checking the fuel gauge.

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Sources:

1. Retirement Income Institute. ' Guaranteed Income: A License To Spend ,' by David Blanchett and Michael Finke, June 2024.

2. U.S. Bureau of Labor Statistics. ' 15% of private industry workers had access to a defined benefit plan ,' 19 Apr. 2024.

3. Kiplinger. ' The Average Monthly Social Security Check: June 2025 ,' by Donna LeValley, July 2025.

4. TIAA. “ Want a longer, happier life? ' 2023.

How does the Becton Dickinson and Company defined benefit plan differ from the cash balance plan in terms of eligibility and benefit calculation? Employees at Becton Dickinson and Company should be aware of how their retirement options and benefit calculations are structured, especially considering the historical context and the changes made after

Defined Benefit vs. Cash Balance Plan: The Becton Dickinson and Company defined benefit plan and cash balance plan differ significantly in terms of eligibility and benefit calculations. The defined benefit plan, which was the original format, calculates benefits based on the employee's final average pay, age, and years of service. On the other hand, the cash balance plan, introduced in 2007, provides a hypothetical account balance that grows with defined pay and interest credits. For eligibility, new hires after January 1, 2018, cannot join either plan, reflecting a closure to new entrants. Those rehired or transferred within the company after this date also cannot accrue new benefits under the cash balance plan.

This question encompasses the differences in participation rules, the implications of being hired before or after January 1, 2018, and how various employment classifications affect benefits.

Pension Benefits Calculation: Under the BD Retirement Plan, pension benefits are calculated based on 'Total Compensation,' which includes various forms of income like base salary, bonuses, and other regular compensations. The benefit is determined by 'Credited Service' and 'Vesting Service,' impacting the final benefit amount. Vesting in the plan occurs after five years of service, ensuring that employees are entitled to benefits regardless of subsequent employment duration.

In what ways are pension benefits and service calculated under the Becton Dickinson and Company BD Retirement Plan? The complexities involved in determining the pension benefit calculation are crucial for employees to understand as they plan for retirement. A discussion on how Total Compensation, Credited Service, and Vesting Service impact the final benefit amount will provide clarity to employees regarding their financial planning as they approach retirement.

Maximum Benefit Limits: Employees should be aware of IRS-imposed limits on contributions and benefits under retirement plans. For 2018, the compensation limit recognized for pension calculations was $275,000, adjusted annually for inflation. This affects the projected retirement benefits and requires employees to stay informed about annual adjustments to plan accordingly.

What specific maximum benefit limits should employees at Becton Dickinson and Company be aware of regarding their retirement plans and how do these limits adapt annually? Understanding the implications of IRS limits for defined benefit plans and cash balance plans is vital for employees at Becton Dickinson and Company. This question would delve into how annual adjustments might affect their projected retirement benefits and the importance of staying informed about these limits.

Addressing Discrepancies or Denial of Benefits: If discrepancies or wrongful denials occur concerning retirement benefits, Becton Dickinson and Company employees should contact the Plan Administrator. The process includes filing claims and understanding the rights to appeal under the Employee Retirement Income Security Act (ERISA). This structured approach helps employees rectify issues with their retirement benefits effectively.

How can Becton Dickinson and Company employees address discrepancies in their benefit calculations or if they believe they have been wrongfully denied benefits? The processes for appealing decisions made regarding retirement benefits can greatly impact an employee's financial future. This question would outline the steps employees can take, including contacting the Plan Administrator and the importance of understanding their rights under the Employee Retirement Income Security Act (ERISA).

Role of Committees in Managing the Retirement Plan: The Plan Administrative Committee and the Investment Committee play critical roles in overseeing the BD Retirement Plan. The former handles the plan's administration, ensuring compliance and managing benefit claims, while the latter focuses on the investment of plan assets. Employees can seek clarification or get involved by attending committee meetings or contacting them directly for specific inquiries.

What roles do the Plan Administrative Committee and the Investment Committee play in managing the BD Retirement Plan of Becton Dickinson and Company, and how can employees get involved or seek clarification on their plans? Employees interested in understanding the governance of their retirement plan will benefit from knowing who oversees the administration and investment of their benefits and how they can participate in discussions or seek advice.

Impact of Early Retirement: Early retirement affects the calculation of pension benefits, which are reduced based on the number of years retirement is taken before the normal retirement age. The plan allows for early retirement from age 55 with at least 10 years of service, with benefits reduced to compensate for the longer payout period.

How does the early retirement benefit impact employees at Becton Dickinson and Company, particularly in terms of eligibility and the calculation of reduced benefits? By exploring the conditions under which early retirement is permitted, along with calculations related to the reduction in benefits for taking early retirement, employees can make more informed decisions based on their personal circumstances.

Ensuring Accuracy of Retirement Benefits: To ensure accuracy in the calculation of retirement benefits, especially after changes in personal circumstances such as marital status or address, employees are encouraged to promptly update their information with HR. Regular reviews of their retirement plan statements and maintaining communication with the plan administrator are advisable practices.

What steps should employees of Becton Dickinson and Company take to ensure their retirement benefits remain accurate and up-to-date, especially after a change in personal circumstances? This question addresses the importance of regularly updating personal information and understanding the repercussions of life changes on retirement benefits, ensuring employees are proactive in managing their future.

Alternatives for Non-Eligible Employees: Employees not eligible for the BD Retirement Plan, possibly due to the timing of their hire or their role, should explore other retirement savings options like IRAs or the BD 401(k) Plan. These alternatives provide avenues for retirement savings, even for those not covered under the traditional pension plans.

What alternatives exist for Becton Dickinson and Company employees who are not eligible for the BD Retirement Plan, and how can they plan for retirement adequately? This discussion can help inform employees who may fall outside the eligibility criteria about other retirement savings options, such as Individual Retirement Accounts (IRAs) or employer-sponsored 401(k) plans.

Determining Survivors' Pensions: The survivor's pension is determined by the pre-retirement surviving spouse benefit, which generally provides a monthly benefit of 50% of the employee's pension, payable to the spouse for life after the employee's death. This emphasizes the importance of employees designating beneficiaries and understanding the impact of these decisions on their family's financial security.

In the context of the Becton Dickinson and Company BD Retirement Plan, how are survivors' pensions determined, and what options are available for employees regarding beneficiaries? Employees often overlook the significance of beneficiary designations. This question would clarify the process and options available for ensuring that survivors receive entitled benefits and the financial implications of different choices made regarding pension benefits for spouses and dependent children.

Contacting the Plan Administrator: Employees seeking more information about their retirement benefits should contact the Plan Administrator. Preparedness for such inquiries includes having detailed personal and employment information, understanding their current benefits status, and having specific questions or concerns about their plan benefits.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Becton Dickinson announced a restructuring plan that includes significant layoffs and a shift in their global operations strategy. The company aims to streamline its operations and reduce costs amid a challenging economic environment.

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For more information you can reach the plan administrator for Becton Dickinson at 1 Becton Dr Franklin Lakes, NJ 7417; or by calling them at +1 201-847-6800.