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6 Retirement Myths Every Arconic Employee Should Rethink

Healthcare Provider Update: Healthcare Provider for Arconic Arconic, a leading provider of aluminum and aerospace products, collaborates with various insurance companies to offer healthcare benefits to its employees. The primary healthcare providers that partner with Arconic vary by location and include well-known insurers like UnitedHealthcare, Aetna, and Blue Cross Blue Shield, among others. Healthcare Cost Increases in 2026 In 2026, healthcare costs are expected to rise significantly, impacting employers and employees alike, including those at Arconic. The projected average increase in health benefit costs could reach nearly 8.5%, attributed to a perfect storm of higher medical expenses and the potential expiration of enhanced federal premium subsidies from the Affordable Care Act (ACA). Many employers are responding by considering changes to plan designs that shift more costs to employees. This could lead to out-of-pocket premium increases that may exceed 75% for a large portion of the workforce, making it critical for companies like Arconic to strategize their healthcare offerings effectively to mitigate financial impacts on their employees. Click here to learn more

'Arconic employees should view retirement planning as an opportunity to enhance long-term clarity and resilience by challenging outdated myths and aligning financial decisions with their personal goals.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'For Arconic employees aiming to build financial confidence, it can help to realize that retirement success often comes from balancing disciplined financial management with meaningful life choices.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

Common retirement myths that may affect financial decisions.
How charitable giving, spending, and debt management can shape retirement strategies.
Overlooked risks, such as fraud, that may be more damaging than market downturns.

There are several myths related to retirement finance that have the potential to jeopardize even the most meticulously crafted financial strategies. Last quarter, for instance, we debunked the idea that bond allocations should match your age and that retirees should never touch principal. Misconceptions about retirement planning, however, go far beyond outdated guidelines.

Here, we look at six common myths that can influence retirement decision-making and aim to dispel them before they affect the financial well-being of Arconic employees.

Myth 1: Making a Large Splurge Is Not Acceptable

It's commonly believed that spending large amounts of money too soon in retirement is irresponsible and should be strongly discouraged. This isn't always the case, though.

'Enjoying the results of your hard work is what retirement is all about,' says Wealth Enhancement advisor Wesley Boudreaux. 'One well-considered investment won't ruin your future if you've laid a solid foundation.'

Take the case of a person who has saved $3 million and plans to withdraw roughly 4% annually, which comes to about $120,000 a year. The total balance falls to $2.95 million if the person decides to buy a $50,000 recreational vehicle to realize a lifelong goal. The reward of reaching a significant life goal likely outweighs the $2,000 reduction in the sustainable yearly withdrawal that results from this modification. Intentionality is the fundamental difference: a planned, one-time expense is not the same as ongoing discretionary spending that undermines long-term consistency—a lesson relevant for Arconic retirees envisioning lifestyle goals.

Myth 2: You Should Only Give Money to Charities After You Die

Many people believe that bequests are the most effective way to give to charities. However, waiting until death is not always the best course of action, even though donating assets to charity through estate planning is a noble goal.

Carlos Hernandez, a Wealth Enhancement financial advisor, observes, 'The estate tax exemption is almost $14 million per individual today.' ¹ This generally exempts many estates from federal estate tax. The upshot? By waiting until death to donate, you might miss advantages you could have right now.

Giving during one’s lifetime has many benefits. It can reduce an estate's size, lower current taxable income, and provide the personal satisfaction of witnessing charitable contributions in action. Donors can feel the direct effects of their gift while they are still alive by establishing a scholarship, setting up a community shelter, or funding a local program. This can create both tax efficiency and emotional gratification for Arconic employees interesting in pursuing long-term philanthropic strategies.

Myth 3: You Should Save Everything for Your Heirs and Spend Less

Although modest spending practices are generally recommended, being overly frugal in retirement might result in regrets and lost opportunities.

According to Boudreaux, 'Far too many people undervalue themselves by treating retirement as just another stage of accumulation. A life well-lived is what your savings are supposed to support.'

Decades of financial resources are meant to be used meaningfully in addition to being preserved. Beyond inheritance, thoughtful financial support can offer advantages such as financing family vacations, helping adult children with a down payment on a house, or contributing to grandchildren's education funds. For Arconic workers approaching retirement, these investments in opportunities and experiences may yield greater satisfaction than leaving behind a larger inheritance.

Myth 4: Before You Can Retire, You Must Pay Off Your Mortgage

Although it is a compelling goal, it's not always financially advantageous to enter retirement debt-free.

Hernandez says, 'When properly managed, mortgage debt can be a strategic tool.' Low interest rates may compare favorably to investment returns, and interest is frequently tax deductible. Furthermore, paying off a mortgage with tax-advantaged retirement assets may result in needless taxes and possibly place retirees in a higher tax bracket.

The choice should be based on weighing the prospective growth of unaltered investments against the after-tax cost of holding mortgage debt. While putting money into investment accounts may improve long-term financial results, for certain households, ongoing mortgage payments maintain liquidity and flexibility. For Arconic families, the right decision depends on evaluating your broader financial picture rather than making a blanket assumption about debt.

Myth 5: You Should Never Take Out a Reverse Mortgage

Despite their reputation for predatory behavior, ² reverse mortgages are now strictly regulated financial instruments. They can give homeowners 62 years of age or older access to their home equity without necessitating a sale or producing taxable income.

'A reverse mortgage can be helpful for the right retiree—supplementing income, helping cover health care costs, or reducing the need to draw from investments during market downturns,' Boudreaux explains, adding that they are not for everyone.

The proceeds are usually not regarded as taxable income because they are structured as a loan. In some cases, this can result in meaningful tax savings. But careful consideration is essential. Long-term objectives, estate planning factors, and household financial dynamics must all be taken into account when implementing a reverse mortgage. Arconic employees should consult trusted advisors before deciding if this tool fits their retirement plan.

Myth 6: Your Greatest Financial Risk Is a Stock Market Crash

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Market downturns frequently make the news, escalating retirement worries. Yet, even though it can be unnerving, volatility isn't always the biggest risk to long-term financial health.

Hernandez says, 'Diversification and careful planning help cushion market downturns. But fraud and scams are among the most underrated threats.'

Con artists commonly use text messages, emails, and phone calls to target older individuals. Scammers take advantage of weaknesses, such as cognitive deterioration, to obtain personal information or money. ³ Financial losses resulting from fraud can quickly damage a retirement fund, frequently more severely than a brief drop in the stock market. Arconic retirees should remain cautious by safeguarding personal information, rejecting unverified payment requests, and confirming suspicious communications with trusted advisors.

Retirement Is Individual

Dispelling these six fallacies reveals an important reality: retirement preparation is very personal. Decisions that depend on particular conditions can be oversimplified by general guidelines and recommendations.

Boudreaux highlights that each retiree has distinct objectives, family dynamics, and risk tolerances. 'For this reason, a customized strategy is more important than merely adhering to general myths.'

The objective is to use your savings wisely—to support your lifestyle, your loved ones, and the causes that are most important to you—rather than merely preserving them, Hernandez adds.

Retirement ought to be viewed as a living strategy that is adaptable, flexible, and representative of individual priorities. By moving past outdated beliefs, Arconic retirees can approach their financial prospects with clarity, resilience, and the freedom that retirement was intended to offer.

According to recent behavioral finance research, retirees who are financially literate, optimistic, future-oriented, and reward-focused are more proactive in their retirement planning—qualities that can be developed over time. People who possessed these traits were less stressed about money and had a tendency to save more regularly. Even though just about 10% of respondents had all four qualities, the study shows that cultivating them may help enhance retirement results. ⁴

Closing Analogy

Retirement planning is similar to driving across the country. Myths like 'every detour is dangerous,' 'fuel should never be used for a scenic stop,' and 'the journey must end with a perfectly full tank' are examples of out-of-date maps that can lead people astray. Knowing when to share resources along the journey, when to save for unforeseen circumstances, and when to savor a meaningful pause are all essential components of true success. For Arconic employees, the path ahead becomes smoother and more rewarding when outdated misconceptions are replaced with well-informed tactics.

Sources:

1. IRS, ' Estate tax ,' October 29, 2024.

2. Bankrate, ' Reverse mortgage scams: What they are and how to avoid them ,' by Kacie Goff, June 9, 2025.

3. FBI, ' Elder Fraud ,' 2025.

4. Goldman Sachs Asset Management, ' Retirement Mindset Matters ,' October 2023.

What retirement benefits and options are available to employees of Arconic Corporation under the Arconic Corp. Pension Plan A, and how do these benefits change based on factors such as age, service length, and retirement category? Employees of Arconic Corporation should understand their eligibility requirements for normal retirement, early retirement, and disability benefits as outlined in the company's pension plan documentation.

The Arconic Corp. Pension Plan A provides retirement benefits based on a formula that considers average earnings and service length, with normal retirement eligibility at age 65 and at least five years of service. Early retirement is available at age 55 with 10 years of service, with benefits reduced based on actuarial assumptions. Disability benefits are available after 10 years of service, and preretirement death benefits offer 50% of accrued benefits to surviving spouses(Arconic Corporation_ Ja…).

How does the frozen state of benefits and service accruals impact current and future retirees at Arconic Corporation? Employees should evaluate how the freeze, effective April 1, 2018, affects their retirement planning and what measures they can take based on their individual circumstances to optimize their retirement benefits.

The frozen state of benefits and service accruals, effective April 1, 2018, means no new service credits or compensation increases are factored into pension calculations for current employees. This freeze affects retirement planning as employees must now rely on frozen benefits and other savings plans to meet retirement needs. It’s important for employees to reassess their financial goals and consider additional investments to optimize retirement benefits(Arconic Corporation_ Ja…).

In what ways can Arconic Corporation employees ensure they meet the requirements for spousal benefits outlined in the pension plan, especially regarding preretirement and postretirement scenarios? Understanding the specifics of eligibility and benefits, such as the surviving spouse benefit calculations, is crucial for employees planning for retirement.

To ensure eligibility for spousal benefits, employees need to meet certain requirements. Preretirement surviving spouse benefits require at least five years of service, and postretirement spousal benefits reduce the participant’s monthly benefit by 5%, with 50% of the reduced amount paid to the spouse if the participant dies first. Employees should understand these provisions to plan for their family’s financial security in retirement(Arconic Corporation_ Ja…).

What are the implications of the actuarial assumptions used by Arconic Corporation in valuing its pension obligations, and how do these assumptions affect the funding of the retirement plan? Arconic Corporation employees should examine how changes in interest rates and mortality tables influence the company's ability to meet its pension obligations.

Actuarial assumptions used in Arconic Corp.’s pension valuations, such as interest rates and mortality tables, directly impact the funding of retirement plans. Changes in these assumptions can affect the pension plan’s obligations and the amount of required contributions, making it important for employees to understand how these factors influence the stability and sufficiency of their retirement benefits(Arconic Corporation_ Ja…).

Can you explain the process by which Arconic Corporation employees can appeal decisions related to their pension benefits, and what support does the company provide during this process? Understanding the proper channels for appeals and the types of documentation required can be vital for employees facing issues with their pension benefits.

Employees can appeal pension benefit decisions through Arconic Corporation’s formal process, which includes submitting an appeal with supporting documentation. The company provides guidelines on what documentation is required, and employees should follow these closely to ensure their case is reviewed thoroughly. The support provided can include detailed responses to clarify benefit calculations and decisions(Arconic Corporation_ Ja…).

What resources are available to Arconic Corporation employees to help them make informed decisions about their retirement benefits, and how can they access these resources efficiently? Employees should know where to find comprehensive materials and support services concerning their retirement plans.

Arconic Corporation offers various resources to assist employees in making informed decisions about their retirement benefits. Employees can access comprehensive plan documents, financial planning tools, and counseling services through the company’s HR department and retirement plan administrators to ensure they fully understand their options(Arconic Corporation_ Ja…).

How does the Arconic Corporation define "average earnings" for calculating retirement benefits, and what methodologies are in place to ensure accuracy in these calculations? Understanding the basis for average earnings will allow employees to better project their pension benefits and prepare for retirement.

Average earnings, used in calculating retirement benefits, are defined as the average of the five highest consecutive calendar years of compensation within the last ten years for most participants. For certain participants, different rules apply based on service and plan conditions. Employees can review their earnings history to ensure accurate calculations and projections for retirement planning(Arconic Corporation_ Ja…).

What criteria does Arconic Corporation use to determine eligibility for deferred vested benefits, and how can employees maximize their advantages in this area? Employees need to be aware of the vesting schedule and how to plan for potential career transitions while maintaining their benefits.

Eligibility for deferred vested benefits in Arconic Corporation’s plan requires five years of service, and benefits can commence as early as age 55, with reductions based on actuarial calculations. Employees should plan career transitions carefully to maximize their vested benefits, especially when considering leaving the company before retirement(Arconic Corporation_ Ja…).

How can Arconic Corporation employees prepare for the potential tax implications of their pension benefits upon retirement, especially in light of IRS regulations for 2024? Being informed about tax strategies related to retirement income can significantly enhance retirees' financial wellbeing.

Employees preparing for retirement should understand the tax implications of pension benefits, particularly in light of IRS regulations for 2024. Strategies such as tax deferral and proper timing of distributions can help minimize the tax burden on retirement income, significantly enhancing financial outcomes(Arconic Corporation_ Ja…).

What contact methods does Arconic Corporation provide for employees wishing to learn more about their pension plan details, and how can employees best utilize these methods to get their queries resolved? Understanding the effective ways to communicate with the company for assistance is key for employees navigating their retirement benefits.

Arconic Corporation provides multiple contact methods for pension-related inquiries, including direct access to HR representatives and pension plan administrators. Employees are encouraged to utilize these resources effectively by preparing questions in advance and keeping detailed records of their communications for follow-up and clarity(Arconic Corporation_ Ja…).

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

Arconic has announced a major restructuring plan that includes significant layoffs across its North American facilities. The restructuring is aimed at streamlining operations and reducing costs amid ongoing economic uncertainties. Additionally, Arconic is revising its pension and 401(k) benefits in response to shifting market conditions and regulatory changes.