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6 Retirement Myths Every WestRock Employee Should Rethink

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

'WestRock employees should view retirement planning as an opportunity to enhance long-term clarity and resilience by challenging outdated myths and aligning financial decisions with their personal goals.'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 WestRock 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 Misconceptions about retirement planning, however, go far beyond outdated guidelines.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 WestRock 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 WestRock 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 WestRock 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 WestRock 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 WestRock 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. WestRock 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. WestRock 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, WestRock 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 WestRock 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.

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…).