New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

WestRock Retirement Roadmap: Creating Income Confidence Beyond the Paycheck

Healthcare Provider Update: Healthcare Provider for WestRock: WestRock employees typically receive their health care benefits through various providers as part of employer-sponsored insurance plans. Specific details on the primary healthcare provider may vary, but it's known that large companies like WestRock often collaborate with major insurers. To identify the exact provider, employees should consult their HR department, which can provide the most accurate and relevant information. Potential Healthcare Cost Increases in 2026: As WestRock prepares for 2026, employees should brace for significant healthcare cost increases. With the expiration of enhanced federal ACA subsidies and rising medical costs, many workers could face steep premium hikes, potentially exceeding 75%. A recent survey indicates that nearly half of large employers, including WestRock, anticipate transferring more healthcare expenses to employees, raising deductibles and out-of-pocket maximums. This evolving landscape highlights the importance for WestRock employees to understand their benefits and mitigate potential financial impacts. Click here to learn more

'For WestRock 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 WestRock 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 WestRock 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 WestRock 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 WestRock 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 WestRock 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 WestRock 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 WestRock 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. WestRock 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, WestRock 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 WestRock 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 WestRock 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 WestRock Company Consolidated Pension Plan specifically calculate the Normal Retirement Benefit for its employees, and what considerations should employees be aware of regarding the Final Average Pay calculation used by WestRock Company?

Normal Retirement Benefit Calculation: The WestRock Company calculates the Normal Retirement Benefit based on the employee's Final Average Pay. This is defined as the average of the employee's highest five years of earnings over the last ten years of employment before termination. Earnings included in the Final Average Pay are most wages, bonuses, commissions, and amounts deferred under the company’s 401(k) plan. Employees should be aware that earnings after December 31, 2015, are excluded unless they qualify under the Rule of 75(WestRock Company_Issued…).

What are the specific eligibility requirements for the Disability Retirement Pension under the WestRock Company plan, and how does this differ for Legacy Mead and Legacy Westvaco participants within the WestRock Company workforce?

Disability Retirement Pension Eligibility: To qualify for a Disability Retirement Pension, an employee must have earned at least five years of Vesting Service and be deemed "totally and permanently disabled" according to specific criteria. Legacy Mead and Legacy Westvaco participants are subject to special rules detailed in the Legacy Supplement. Legacy Mead employees must apply separate criteria from Legacy Westvaco employees(WestRock Company_Issued…).

In what ways can employees at WestRock Company manage and maximize their Vesting Service to ensure they receive the full benefits from the companyâ€™s pension plan, particularly for those with interrupted service or re-employment?

Vesting Service Maximization: WestRock employees can manage their Vesting Service by ensuring that they complete at least five years of service, which guarantees their right to pension benefits. Employees with interrupted service can still receive credit for Vesting Service if they return within five years. Additionally, employees who leave and return within a year will receive credit for the time they were absent(WestRock Company_Issued…).

How does the WestRock Company handle the transition of benefits for employees who transfer between different positions within the company, and what impacts could this have on their eventual retirement benefits?

Transfer Between Positions: When WestRock employees transfer between different positions, their retirement benefit is calculated based on the greater of two methods. The first method calculates the benefit accrued at each position separately, while the second method applies the total benefit service across positions. Vesting Service is always combined, regardless of location or position(WestRock Company_Issued…).

How does the WestRock Company plan ensure that pension benefits are protected, particularly through the Pension Benefit Guaranty Corporation (PBGC), and what should employees know about their rights and guarantees under this insurance?

Pension Benefit Protection (PBGC): The WestRock Pension Plan is insured by the Pension Benefit Guaranty Corporation (PBGC). This federal insurance guarantees that employees will receive their vested pension benefits even if the plan is terminated. Employees should understand that PBGC coverage has limits, and benefits might be reduced under certain circumstances(WestRock Company_Issued…).

What are the consequences for WestRock Company employees who choose to withdraw from their pension plan or to rollover their benefits upon retirement or termination? How can they navigate these options effectively to avoid penalties?

Withdrawals and Rollovers: Employees can withdraw or roll over their pension benefits upon retirement or termination. Lump-sum withdrawals may be subject to taxes unless rolled over into a qualifying retirement account. Employees should consult the WestRock Benefits Center to avoid penalties and ensure compliance with federal tax regulations(WestRock Company_Issued…).

How does the WestRock Company maintain compliance with federal regulations and best practices under ERISA, and what specific rights do employees have concerning their pension benefits?

ERISA Compliance: WestRock complies with the Employee Retirement Income Security Act (ERISA), ensuring that employees' pension rights are protected. Employees have the right to receive information about their benefits, act prudently, and enforce their rights through the claims and appeals process outlined in the plan(WestRock Company_Issued…).

What resources are available to employees of WestRock Company for understanding their benefits under the Consolidated Pension Plan, and how can they utilize these resources to ensure they make informed decisions about their retirement?

Resources for Understanding Benefits: WestRock provides employees access to the WestRock Benefits Center, where they can obtain information on their pension plan. Employees are encouraged to review the Summary Plan Description and consult with the Benefits Center for clarification on their benefits and to make informed retirement decisions(WestRock Company_Issued…).

How will the integration of employee benefits from various company acquisitions impact current staff at WestRock Company, and what steps is the company taking to communicate these changes effectively to its employees?

Impact of Acquisitions on Benefits: WestRock has acquired various companies over time, and employees from these acquisitions may have different pension rules applied to them. WestRock takes steps to integrate these employees and communicates any changes through the WestRock Benefits Center. Special rules may apply based on the previous employer’s pension plan(WestRock Company_Issued…).

How can employees of WestRock Company get in touch with the WestRock Benefits Center to seek clarification about the Summary Plan Description, and what are the best practices to follow when requesting information regarding their pension plan?

Contacting the Benefits Center: Employees can contact the WestRock Benefits Center for clarification on the Summary Plan Description. Best practices include having detailed questions prepared, reviewing the SPD in advance, and requesting copies of documents or forms that clarify specific aspects of their pension plan(WestRock Company_Issued…).