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

Los Angeles Fire and Police Pensions Employees Confront the Fear of Running Out of Money in Retirement

Healthcare Provider Update: Healthcare Provider for Los Angeles Fire and Police Pensions The healthcare provider for Los Angeles Fire and Police Pensions typically encompasses a variety of insurance plans catering to its members, often including major insurers such as Anthem Blue Cross, Kaiser Permanente, and others, depending on the specific program selected by the employees. Potential Healthcare Cost Increases in 2026 In 2026, employees of Los Angeles Fire and Police Pensions may face a substantial increase in healthcare costs due to anticipated record hikes in ACA premiums, with some states projecting increases exceeding 60%. This surge results from a combination of factors including escalating medical expenses and the potential expiration of enhanced federal premium subsidies, which could lead to average out-of-pocket premium increases of over 75% for many enrollees. As employers, including Los Angeles Fire and Police Pensions, navigate these challenges, employees need to proactively manage their healthcare benefits and expenses to minimize the financial impact in the coming year. Click here to learn more

'To allay long-term financial concerns, Los Angeles Fire and Police Pensions 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 Los Angeles Fire and Police Pensions 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 Los Angeles Fire and Police Pensions, 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 Los Angeles Fire and Police Pensions, 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 Los Angeles Fire and Police Pensions 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.

Featured Video

Articles you may find interesting:

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 Los Angeles Fire and Police Pensions 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 purpose of the 401k/Savings Plan offered by Los Angeles Fire and Police Pensions?

The purpose of the 401k/Savings Plan offered by Los Angeles Fire and Police Pensions is to help employees save for retirement by allowing them to contribute a portion of their salary to a tax-advantaged account.

How can employees of Los Angeles Fire and Police Pensions enroll in the 401k/Savings Plan?

Employees of Los Angeles Fire and Police Pensions can enroll in the 401k/Savings Plan by completing the enrollment form available on the company's intranet or by contacting the HR department for assistance.

What types of contributions can employees make to the 401k/Savings Plan at Los Angeles Fire and Police Pensions?

Employees at Los Angeles Fire and Police Pensions can make pre-tax contributions, Roth (after-tax) contributions, and possibly employer matching contributions, depending on the plan specifics.

Is there a minimum contribution amount required for the 401k/Savings Plan at Los Angeles Fire and Police Pensions?

Yes, Los Angeles Fire and Police Pensions may have a minimum contribution amount, typically around 1% of the employee's salary, but employees should check the plan documents for specific details.

What is the maximum contribution limit for the 401k/Savings Plan at Los Angeles Fire and Police Pensions?

The maximum contribution limit for the 401k/Savings Plan at Los Angeles Fire and Police Pensions is subject to IRS regulations, which can change annually. Employees should refer to the latest IRS guidelines for the current limits.

Does Los Angeles Fire and Police Pensions offer employer matching contributions for the 401k/Savings Plan?

Yes, Los Angeles Fire and Police Pensions offers employer matching contributions to the 401k/Savings Plan, which can help employees increase their retirement savings.

How often can employees change their contribution amounts to the 401k/Savings Plan at Los Angeles Fire and Police Pensions?

Employees at Los Angeles Fire and Police Pensions can typically change their contribution amounts at any time, but they should check the plan rules for any specific restrictions.

What investment options are available within the 401k/Savings Plan at Los Angeles Fire and Police Pensions?

The 401k/Savings Plan at Los Angeles Fire and Police Pensions offers a variety of investment options, including mutual funds, target-date funds, and possibly other investment vehicles, depending on the plan.

Can employees take loans against their 401k/Savings Plan balance at Los Angeles Fire and Police Pensions?

Yes, employees may be able to take loans against their 401k/Savings Plan balance at Los Angeles Fire and Police Pensions, subject to the terms and conditions of the plan.

What happens to the 401k/Savings Plan when an employee leaves Los Angeles Fire and Police Pensions?

When an employee leaves Los Angeles Fire and Police Pensions, they have several options for their 401k/Savings Plan, including rolling it over to an IRA or another qualified plan, cashing it out, or leaving it in the plan if permitted.

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

FERS does not typically include RSUs or stock options. The retirement benefits are based on a pension plan that provides retirement income based on years of service and salary.