Why A.O. Smith Employees Can Benefit from a Written Financial Plan

Healthcare Provider Update: Healthcare Provider for A.O. Smith A.O. Smith primarily offers healthcare benefits to its employees through a selection of insurance plans, which include both individual and family coverage options. Specific details on the providers or plans may vary based on location and employee level, but many employees utilize major providers like Blue Cross Blue Shield or Aetna for their healthcare needs. Potential Healthcare Cost Increases in 2026 In 2026, A.O. Smith employees may face significant healthcare cost increases, primarily driven by anticipated hikes in Affordable Care Act (ACA) premiums. Reports indicate that some states are expecting increases of over 60%, affecting the insurance landscape as federal subsidizations expire. As many as 22 million marketplace enrollees-constituting about 92% of policyholders-could see their out-of-pocket premiums rise by more than 75%. This drastic increase in healthcare costs is compounded by rising medical expenses and pressure from major insurers, resulting in a challenging financial environment for employees planning their healthcare budgets. Click here to learn more

'A.O. Smith employees who take the time to create a written retirement plan often move from uncertainty to clarity, using a structured approach to transform savings into a foundation for long-term stability.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'Given the complex retirement decisions A.O. Smith employees face, having a written financial plan can provide the structure needed to effectively coordinate income, taxes, and benefits for long-term confidence.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

1. The importance of having a written financial plan for retirement.

2. Generational and demographic gaps in retirement planning.

3. Strategies for managing taxes, risks, and income during retirement.

The Importance of a Written Financial Plan 

One of the most important life changes is retirement, but many Americans enter this phase without a clear plan. A financial plan is much more than just a set of figures; it's a strategy that can help turn savings into steady income, account for possible risks, and establish a framework to payfor both anticipated and unforeseen costs. Even careful savers at A.O. Smith run the risk of depleting their funds too soon, paying needless taxes, or taking rash actions that could undermine their long-term stability in the absence of such a strategy.

Yet, despite the critical role of financial planning, research from the Allianz Life 2025 Annual Retirement Study shows that 47% of Americans lack a formal financial plan. ¹  Many people regularly make contributions to retirement accounts like 401(k)s and IRAs, so this deficit is not the result of a lack of involvement in savings programs. Instead, it represents a general lack of clarity over how to turn saved money into a practical plan. The poll found that 59% of Americans admit they don't know what else they should be doing outside of making contributions to retirement accounts. ¹  This uncertainty applies to A.O. Smith workers as well, just when a methodical approach is most needed.

What the Information Shows

The gap between generations.  Forty-two percent of Millennials lack a documented plan. As people age, the problem gets worse; 54% of Baby Boomers and 55% of Generation X say they don't have a written approach. ¹  Given that Gen Xers and Boomers are either in or nearing retirement, where the lack of a plan can have serious and immediate repercussions, this is especially concerning and should form a warning for those nearing the end of their careers at A.O. Smith.

Racial division.  Different demographic groupings also exhibit planning gaps. Compared to 51% of Black/African American respondents, 41% of Hispanic respondents, and 56% of Asian/Asian American respondents, around 46% of White respondents do not have a documented strategy. ¹  These numbers demonstrate the need for more focused financial outreach and education to help address inequalities and offer useful guidance to all.

Additionally, confidence in one's preparedness for retirement is still fragile. Just 45% of Americans say they are aware of how they will turn their retirement assets into income. Furthermore, 53% think that having a retirement account is 'enough.' ¹  Many people are ill-prepared for important factors such as tax-efficient withdrawal strategies, steady income streams, and ways to handle inflation or market volatility. This misplaced confidence has clear implications for A.O. Smith employees considering their retirement future.

How Written Plans Help

A financial plan offers several benefits that can help strengthen long-term stability:

• Making money from savings.  A written plan can help retirees lower the risk of outliving their resources by establishing organized withdrawal techniques that balance lifespan and income demands.

• Risk management.  Inflation, growing medical expenses, and unforeseen market downturns can all be accounted for with holistic planning.

• Efficiency in taxes.  Over time, coordinating withdrawals across several account types can help mitigate taxes and preserve resources.

• Confidence and clarity.  A plan gives clarity and specific steps to reduce ambiguity, limit emotional decision-making, and build peace of mind.

These advantages are especially relevant for A.O. Smith employees who may have multiple retirement account options and benefits to coordinate.

A Chance for Guidance

Lack of planning is more a sign of a lack of direction than unwillingness. While many people save money, not all understand how to move from sporadic contributions to a long-term financial plan. This underscores the importance of working with financial planners who can provide guidance, assisting investors—including those from A.O. Smith—to navigate difficult choices regarding income, taxes, and long-term stability.

A written strategy is more than just reaching a certain financial goal. It involves creating an income route that is flexible enough to adjust to changing life situations. The existence of a written plan frequently makes the difference between doubt and confidence for people starting or already in retirement.

In Conclusion

The information is clear. The majority of Americans are still unsure of how to turn savings into steady income, and over half do not have a formal financial plan. ¹  In a time when taxes, inflation, and medical expenses continue to influence financial choices, organized planning is more important than ever. Whether a strategy is committed to writing often makes the difference between long-term stability and ongoing financial concern. A.O. Smith retirees can better position themselves to manage risks, coordinate resources, and maintain financial independence during retirement by developing a clear, flexible plan.

In March 2025, the T. Rowe Price Retirement Savings and Spending Study also found that 62.5% of respondents with a formal written plan reported feeling more confident about their financial outlook than those without one. ²  Maintaining and updating a written financial plan on a regular basis can help enhance confidence and reduce financial stress.

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Sources:

1. Allianz Life Insurance Company of North America. ' How Americans feel about retirement in 2025 ,' June 2025.

2. T. Rowe Price, ' Survey reveals the rising importance of financial planning at retirement ,' March 20, 2025.