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Allison Transmission Holdings Employees Confront the Fear of Running Out of Money in Retirement

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'To allay long-term financial concerns, Allison Transmission Holdings 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 Allison Transmission Holdings 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 Allison Transmission Holdings, 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 Allison Transmission Holdings, 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 Allison Transmission Holdings 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 Allison Transmission Holdings 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 401(k) plan offered by Allison Transmission Holdings?

The 401(k) plan at Allison Transmission Holdings is a retirement savings plan that allows employees to save a portion of their earnings on a tax-deferred basis.

How does Allison Transmission Holdings match employee contributions to the 401(k) plan?

Allison Transmission Holdings offers a matching contribution up to a certain percentage of the employee's salary, which enhances the overall savings potential.

When can employees at Allison Transmission Holdings enroll in the 401(k) plan?

Employees at Allison Transmission Holdings can enroll in the 401(k) plan during their initial onboarding or during the annual open enrollment period.

What types of investment options are available in the Allison Transmission Holdings 401(k) plan?

The 401(k) plan at Allison Transmission Holdings includes a variety of investment options, such as mutual funds, stocks, and bonds, allowing employees to diversify their portfolios.

Is there a vesting schedule for the 401(k) contributions made by Allison Transmission Holdings?

Yes, there is a vesting schedule for the matching contributions made by Allison Transmission Holdings, which determines how much of the employer's contributions employees can keep if they leave the company.

Can employees at Allison Transmission Holdings take loans against their 401(k) savings?

Yes, employees at Allison Transmission Holdings may have the option to take loans against their 401(k) savings, subject to the plan's rules and limits.

What happens to the 401(k) plan if an employee leaves Allison Transmission Holdings?

If an employee leaves Allison Transmission Holdings, they can choose to roll over their 401(k) balance into another retirement account, leave it in the Allison Transmission Holdings plan, or cash it out, subject to taxes and penalties.

Are there any fees associated with the 401(k) plan at Allison Transmission Holdings?

Yes, there may be administrative fees associated with the 401(k) plan at Allison Transmission Holdings, which are disclosed in the plan documents.

How often can employees at Allison Transmission Holdings change their 401(k) contribution amounts?

Employees at Allison Transmission Holdings can typically change their 401(k) contribution amounts during the open enrollment period or as permitted by the plan rules.

Does Allison Transmission Holdings provide educational resources about the 401(k) plan?

Yes, Allison Transmission Holdings offers educational resources and workshops to help employees understand their 401(k) options and make informed investment decisions.

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

News: Allison Transmission Holdings has announced a restructuring plan that includes a significant reduction in their workforce. They are also revising their pension and benefit plans.
Importance: Addressing this news is crucial due to the ongoing economic uncertainties and potential impacts on employees' financial security. The changes reflect broader trends in the industry that could influence investment and tax strategies.

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For more information you can reach the plan administrator for Allison Transmission Holdings at One Allison Way Indianapolis, IN 46222; or by calling them at (317) 242-5000.