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Alight Employees Confront the Fear of Running Out of Money in Retirement

Healthcare Provider Update: Alight Solutions is partnered with various healthcare providers to support its employee benefits initiatives, with national insurers such as UnitedHealthcare and Cigna frequently featured in their offerings. Alight focuses on delivering customized health plans that cater to the diverse needs of its workforce while emphasizing cost-efficiency and quality of care. As we look ahead to 2026, Alight employees should brace for notable increases in healthcare costs. With projections indicating premiums for Affordable Care Act (ACA) plans could surge by as much as 66% in some states, the impact will be significant. Additionally, the anticipated expiration of enhanced federal subsidies could exacerbate out-of-pocket expenses, with many households potentially facing a chilling 75% rise in monthly premiums. Amidst this landscape, it is crucial for employees to carefully review benefit changes and explore strategies to manage increasing healthcare expenses effectively. Click here to learn more

'To allay long-term financial concerns, Alight employees may benefit from a comprehensive retirement strategy that addresses inflation, health care costs, and tax planning.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Proactive retirement planning—especially around inflation, health care, and shifting tax policies—can help Alight employees gain clarity and reduce uncertainty in the years leading up to retirement.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

Key causes of retirement anxiety, including inflation, health care, and taxes.
Generational differences in money concerns and readiness.
The value of broad retirement planning approaches.

Retirement Anxiety is On The Rise

Employees across industries, including those at Alight, have long worried about how they will fund retirement. These concerns have grown considerably in today’s economy. Nearly two out of three Americans (64%) said they worry more about outliving their resources than they do about dying, according to the Allianz Center for the Future of Retirement’s 2025 Annual Retirement Study. ¹

Main Causes of Retirement-Related Worry

The Allianz study lists several key triggers of these fears. Regarding long-term planning, 54% of respondents said inflation was their top worry. Increases in health care costs, housing, and food prices are still undermining people’s purchasing power.

Concerns around Social Security’s future and tax burdens are also high. 43% said they feared Social Security might not offer adequate support. And another 43% named high taxes as a major issue.

Generational Gaps in Money Stress

Gen X—often balancing care for both kids and aging parents—report the highest worry: 70% versus 66% of millennials and 61% of boomers. Among corporate workers, including those at Alight, this dynamic underlines how family obligations can magnify retirement concerns.

The Gap Between Worry and Action

The survey shows a gap between concern and conversation: just 23% of respondents have talked about outliving their assets with a retirement specialist, down from 28% in 2024. ² That said, Americans are considering several strategies to allay these fears, ranking the following approaches as most helpful:

41% said cutting current spending to funnel more toward retirement 
44% said increasing retirement contributions 
39% said postponing retirement
While increasing contributions to retirement accounts could help address these concerns, barriers remain: daily necessities (63%), credit card debt (40%), mortgage or rent (35%) were top reasons people weren’t contributing more.

The Emotional Side of Retirement Anxiety

Retirement fears influence not just finances, but lifestyle, career choices, and family planning. Worries about independence, dignity, and quality of life often accompany fear of running short on funds.

Health care need are often underestimated too, complicating the equation. Medicare covers many basic services, but long‑term care, home assistance, and uncovered treatments can add large bills—adding uncertainty even for high‑income employees.

Broader Retirement Planning Matters

The Allianz findings emphasize planning well beyond just saving. With people living 25 to 30 years post‑work, a solid planning mindset is critical. As Kelly LaVigne, VP at Allianz Life, noted, “Americans areliving longer… your money needs to go farther. A good plan considers 25 to 30 years of retirement, not just the first ten.” ²

Key components often include:

Income strategies: setting up regular monthly disbursements from assets
Tax planning: reducing tax burdens on withdrawals
Health care planning: factoring in Medicare gaps and long‑term care
Inflation alignment: keeping income responsive to cost increases

Combined, these strategies can help build resilience, confidence, and preparedness even in uncertain times.

In Conclusion

The 2025 Allianz Retirement Study makes it clear: a majority of Americans—and Alight employees among them—see the threat of running out of money as more frightening than death. Rising inflation, health care spending, and uncertainty around Social Security are central drivers. Fewer are taking direct action through planning conversations or boosted contributions.

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Yet there is opportunity. The IRS now permits catch‑up 401(k) contributions of up to $11,250 for those aged 60–63 in 2025—above the standard limit. For many, this is a practical way to fortify resources in those final working years.

A Final Thought

Think of retirement like a long sea voyage. Death may be the storm ahead, but empty savings are the leak that can sink the ship first. According to the Allianz study, 64% of Americans fear that leak more than the storm. For Alight employees, the goal is to build a well-structured plan—with consistent income, planning for health costs, and tax awareness—that can keep the vessel afloat for the long haul.

Sources:

1. Allianz Life Insurance Company of North America, ' How Americans feel about retirement in 2025 ,' by the Allianz Center for the Future of Retirement ^TM , June 2025.

2. businesswire, ' Americans Are More Worried About Running Out of Money Than Death ,' April 22, 2025.

What is the primary purpose of Alight's 401(k) Savings Plan?

The primary purpose of Alight's 401(k) Savings Plan is to help employees save for retirement through tax-advantaged contributions.

How can Alight employees enroll in the 401(k) Savings Plan?

Alight employees can enroll in the 401(k) Savings Plan through the company’s HR portal or by contacting the benefits department for assistance.

Does Alight provide a matching contribution to the 401(k) Savings Plan?

Yes, Alight offers a matching contribution to the 401(k) Savings Plan to encourage employees to save for their retirement.

What types of investment options are available in Alight's 401(k) Savings Plan?

Alight's 401(k) Savings Plan includes a variety of investment options, such as mutual funds, target-date funds, and stable value funds.

Can Alight employees change their contribution percentage to the 401(k) Savings Plan?

Yes, Alight employees can change their contribution percentage at any time by accessing their account online or contacting HR.

What is the minimum age requirement to participate in Alight's 401(k) Savings Plan?

The minimum age requirement to participate in Alight's 401(k) Savings Plan is typically 21 years old.

Are there any fees associated with Alight's 401(k) Savings Plan?

Yes, Alight's 401(k) Savings Plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

How often can Alight employees make changes to their investment allocations in the 401(k) Savings Plan?

Alight employees can typically make changes to their investment allocations in the 401(k) Savings Plan on a quarterly basis or as specified in the plan guidelines.

What happens to Alight employees' 401(k) Savings Plan when they leave the company?

When Alight employees leave the company, they can choose to roll over their 401(k) savings into an IRA or a new employer's plan, or they may cash out their account, subject to taxes and penalties.

Is there a loan option available within Alight's 401(k) Savings Plan?

Yes, Alight's 401(k) Savings Plan may offer a loan option, allowing employees to borrow against their savings under certain conditions.

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

Alight has announced a restructuring plan that includes significant layoffs, impacting about 10% of its workforce. The company is shifting its focus to digital solutions and outsourcing to streamline operations. Additionally, they are revising their benefits and pension plans to align with the new business model.

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For more information you can reach the plan administrator for Alight at 4 Overlook Point Lincolnshire, IL 60069; or by calling them at (224) 737-7000.