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Healthcare Provider Update: Healthcare Provider for Meta Meta, which operates various platforms such as Facebook, Instagram, and WhatsApp, provides health benefits to its employees through a partnership with UnitedHealthcare. This collaboration ensures that Meta's workforce has access to a comprehensive range of medical services, including preventive care and wellness programs. Potential Healthcare Cost Increases in 2026 As we approach 2026, healthcare costs are anticipated to surge significantly, primarily due to unprecedented hikes in Affordable Care Act (ACA) premiums. Certain states are projected to see increases exceeding 60%, a trend driven by rising medical costs and the potential expiration of enhanced federal premium subsidies. The Kaiser Family Foundation warns that without Congressional action, the majority of ACA marketplace enrollees could face out-of-pocket premium hikes of over 75%, further straining household budgets. As insurers cite inflated claims and operational costs, employers and consumers alike must prepare for these dramatic financial shifts in the healthcare landscape. Click here to learn more
'Meta employees approaching retirement should recognize that the sequence of market returns in their early years can influence the longevity of their income far more than the average return itself, making disciplined withdrawal strategies and diversified income planning essential.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
'Meta employees nearing retirement can benefit from understanding how market downturns early in retirement may have lasting effects, and from adopting flexible, research-based withdrawal and allocation strategies to help sustain their income over time.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article we will discuss:
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Historical examples of sequence-of-returns risk and their effects on retirement income.
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Why the first years of retirement are most critical for portfolio sustainability.
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Research‑backed strategies for managing sequence risk and supporting long‑term retirement goals.
Contributed by Paul Bergeron and Brent Wolf of Wealth Enhancement
For Fortune 500 employees approaching retirement, recognizing the timing of returns—not just the average return—can be critical to keeping income going over the long term. This concept, known as sequence-of‑returns risk, shows how poor early market performance in retirement can have a lasting impact on a withdrawal plan, even if long-term averages seem strong. Historical market data provides clear examples of this risk and offers practical methods for responding to it.
Historical examples of sequence risk
Fortune 500 retirees entering retirement during tough market cycles face situations similar to the declines seen in the late 1960s, when the market hit two bear markets (1968–70 and 1973–74) alongside high inflation. The S&P 500 dropped roughly 48% during the 1973–74 bear market, compounding inflation-related difficulties. 1 Likewise, those retiring in 2000 endured two severe bear markets in the decade, while 2022 proved one of the toughest years for balanced portfolios, with sharp drops in both U.S. stocks and high-quality bonds.
Why the early years matter most
For a Fortune 500 retiree, significant losses in the first five to ten years of retirement—combined with regular withdrawals—can shrink the number of shares left to rebound when markets recover. Academic studies and industry research repeatedly show that even with the same average return, the order of gains and losses plays a huge role in retirement outcomes.
Research-backed strategies to manage sequence risk
One effective method for Fortune 500 retirees is keeping a mix of asset types to help weather downturns. Cash and bonds can act as “shock absorbers” for immediate expenses, reducing the need to sell stocks during market dips. Flexible withdrawal approaches—such as adjusting withdrawals within set guardrails—have been shown to support portfolio longevity better than fixed-dollar withdrawal methods.
Staging risk in a retirement portfolio—by holding one to two years of expenses in cash-like assets and several years in short‑ to intermediate‑term bonds—may give equities time to recover before they're tapped for income. For some Fortune 500 retirees, delaying income sources like Social Security can help raise total lifetime income and lessen the need to tap investments during volatile times. Thoughtful rebalancing and managing tax lots, especially during downturns, can also help maintain equity exposure and extend portfolio lifespan.
Implications for retirement planning
While higher stock allocations may offer greater long-term growth potential, they also increase sequence risk in early retirement for Fortune 500 workers. Historically, balanced portfolios—often with 30% to 50% equities for income-focused funds—have supported more resilient initial withdrawal rates compared to all-stock strategies. 2 Strong early-market results can set up long-term success, but disciplined spending limits, guardrails, and rebalancing remain key.
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
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- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
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Sources:
1.The New York Times. ' What Happens When Stock Markets Become Bears ,' by William Davis, Karl Russell, and Stephen Gandel. 13 June 2022.
2. Vanguard UK. ' Sustainable Spending Rates in Turbulent Markets ,' by Daga, Ankul, et al. Mar. 2021, pp. 1–7.
Other Resources:
1. Guyton, Jonathan T., and William J. Klinger. “ Decision Rules and Maximum Initial Withdrawal Rates .” Journal of Financial Planning , vol. 19, no. 3, Mar. 2006, pp. 48–50, 52–54, 56–58. Financial Planning Association.
2. “ Timeline of U.S. Stock Market Crashes .” Investopedia , 30 Oct. 2024, section “The 1973–74 Oil Crisis Bear Market.”
3. ' When to Start Receiving Retirement Benefits. ' Social Security Administration, Pub. No. 05-10147, May 2024, pp. 1–2.
4. Arnott, Amy C., CFA, and Ivanna Hampton. “ Why More Diversification Doesn’t Mean Better Returns .” Morningstar , 7 June 2024.
What is the 401(k) plan offered by Meta?
Meta offers a 401(k) plan that allows employees to save for retirement by contributing a portion of their salary before taxes.
How does Meta match employee contributions to the 401(k) plan?
Meta provides a matching contribution to the 401(k) plan, typically matching a percentage of the employee's contribution up to a certain limit.
Can employees at Meta choose how their 401(k) contributions are invested?
Yes, employees at Meta can choose from a variety of investment options for their 401(k) contributions, including stocks, bonds, and mutual funds.
What is the eligibility requirement for Meta's 401(k) plan?
Employees at Meta are generally eligible to participate in the 401(k) plan after completing a specified period of employment.
Does Meta offer a Roth 401(k) option?
Yes, Meta offers a Roth 401(k) option, allowing employees to make after-tax contributions to their retirement savings.
How often can employees at Meta change their 401(k) contribution amounts?
Employees at Meta can change their 401(k) contribution amounts at any time, subject to the plan's rules.
What happens to my 401(k) plan if I leave Meta?
If you leave Meta, you can choose to roll over your 401(k) balance to another retirement account, leave it in the Meta plan, or cash it out, although cashing out may incur penalties.
Does Meta provide financial education resources for employees regarding their 401(k)?
Yes, Meta provides financial education resources and tools to help employees make informed decisions about their 401(k) savings.
Are there any fees associated with Meta's 401(k) plan?
Yes, there may be administrative fees associated with Meta's 401(k) plan, but these are typically disclosed in the plan documents.
Can employees take loans against their 401(k) balance at Meta?
Yes, Meta allows employees to take loans against their 401(k) balance, subject to specific terms and conditions.