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

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

Healthcare Provider Update: Healthcare Provider for Nordstrom For its healthcare needs, Nordstrom partners primarily with Aetna, Premera, and Kaiser Permanente to provide health insurance plans to its employees. Each of these insurers offers various options, including high-deductible plans accompanied by Health Savings Accounts (HSAs), allowing employees to manage their healthcare expenses more effectively. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs for Nordstrom employees may see significant increases due to projected hikes in Affordable Care Act (ACA) premiums. Many states are anticipating rate increases of over 20%, with places like New York facing hikes exceeding 66%. The expiration of enhanced ACA subsidies will exacerbate these financial pressures, with projections suggesting that more than 22 million enrolled individuals could see their premiums surge by over 75%. This perfect storm of rising medical costs and subsidy losses will require employees to prepare for a substantial rise in their out-of-pocket healthcare expenses. Click here to learn more

'To allay long-term financial concerns, Nordstrom 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 Nordstrom 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 Nordstrom, 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 Nordstrom, 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 Nordstrom 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 Nordstrom 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 Nordstrom 401(k) plan?

The Nordstrom 401(k) plan is a retirement savings plan that allows eligible employees to save for their future by contributing a portion of their earnings before taxes.

How can I enroll in the Nordstrom 401(k) plan?

You can enroll in the Nordstrom 401(k) plan by accessing the employee benefits portal or contacting the HR department for guidance on the enrollment process.

What is the employer match for the Nordstrom 401(k) plan?

Nordstrom offers a matching contribution to your 401(k) plan, which typically matches a percentage of your contributions up to a certain limit, helping you save more for retirement.

When can I start contributing to the Nordstrom 401(k) plan?

Eligible employees can start contributing to the Nordstrom 401(k) plan after completing a specified waiting period, usually within the first few months of employment.

What types of investments are available in the Nordstrom 401(k) plan?

The Nordstrom 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose investments that align with their retirement goals.

Can I change my contribution rate for the Nordstrom 401(k) plan?

Yes, you can change your contribution rate for the Nordstrom 401(k) plan at any time, subject to certain limits and guidelines set by the plan.

Is there a vesting schedule for Nordstrom's 401(k) matching contributions?

Yes, Nordstrom has a vesting schedule for its matching contributions, meaning that you must work for the company for a certain period before you fully own the employer contributions.

What happens to my Nordstrom 401(k) plan if I leave the company?

If you leave Nordstrom, you can choose to roll over your 401(k) balance to another retirement account, cash it out (subject to taxes and penalties), or leave it in the Nordstrom plan if eligible.

Can I take a loan from my Nordstrom 401(k) plan?

Yes, Nordstrom allows employees to take loans from their 401(k) plan, subject to certain terms and conditions outlined in the plan documents.

Are there hardship withdrawal options available in the Nordstrom 401(k) plan?

Yes, Nordstrom offers hardship withdrawal options for employees facing financial difficulties, allowing access to funds under specific circumstances defined by the plan.

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

Name of Pension Plan: Nordstrom offers a defined benefit pension plan named the Nordstrom Retirement Plan. Years of Service and Age Qualification: Employees are eligible for the Nordstrom Retirement Plan after 5 years of service, and they must be at least 55 years old to start receiving benefits. Pension Formula: The pension benefits are calculated based on years of service and average salary. Specific formulas and details are outlined in the plan document. Name of 401(k) Plan: The 401(k) plan offered by Nordstrom is named the Nordstrom 401(k) Savings Plan. Qualification for 401(k) Plan: Employees are eligible to participate in the Nordstrom 401(k) Savings Plan from their first day of employment. Company Match: Nordstrom provides a company match up to a certain percentage of the employee’s contributions.

Restructuring and Layoffs: In 2023, Nordstrom announced a restructuring plan aimed at streamlining its operations and improving profitability. This included a significant reduction in workforce, with several hundred employees being laid off as part of a broader strategy to reduce costs and enhance efficiency. The company stated that these changes were essential to adapt to shifting market conditions and consumer behavior. 2. Changes to Benefits and Pension Plans: In response to economic pressures, Nordstrom has made adjustments to its employee benefits and pension plans. The company has introduced changes to its 401(k) matching contributions, reducing the amount of company contributions to employee retirement accounts. Additionally, modifications were made to health benefits to control costs, affecting the coverage levels and out-of-pocket expenses for employees.**

Nordstrom offers stock options and RSUs as part of its employee compensation package. These benefits are available to various levels of employees, often including executives and key staff members. Stock options at Nordstrom give employees the right to purchase shares at a set price, while RSUs are company shares granted to employees after meeting certain conditions.

2022-2023: Nordstrom updated its healthcare plans to include enhanced mental health services and telehealth options. They also introduced flexible spending accounts (FSAs) and health savings accounts (HSAs) to provide more financial flexibility for employees. 2024: There have been announcements of new partnerships with healthcare providers to improve access to quality care and reduce costs for employees. Nordstrom is focusing on preventive care and wellness programs.