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Deciding When to Retire: When Timing Becomes Critical Unisys Corporation

For Unisys Corporation employees planning on retiring, it is important to consider not only the financial fitness, but also the emotional and psychological fitness of leaving the workforce and entering the world of retirement,' advises Michael Corgiat of The Retirement Group, a division of Wealth Enhancement Group. 'Taking a proactive stance towards retirement planning can significantly increase the quality and duration of your retirement.'

'Brent Wolf of The Retirement Group, a division of Wealth Enhancement Group, stresses that it is crucial for Unisys Corporation employees to comprehend the dynamics of social security timing, pension benefits, and personal savings strategies. He recommends starting these assessments early to make decisions that lead to a better retirement income and longevity.'

In this article, we will discuss:

Workforce Trends: This paper will focus on the current trend of workers aged 60 and above who decide to remain in the labour market after the conventional retirement age for financial and personal reasons.
Retirement Planning: Some of the issues and strategies for people retiring from Unisys Corporation companies, including when to claim Social Security benefits, how to manage health care costs, and when to move from savings to investments.
Phased Retirement Options: The advantages of phased retirement programs that enable aging workers to work part-time and draw their pension benefits, thus easing the transition to retirement.

In a study done by the Transamerica Center for Retirement Studies in 2020, the Transamerica Center for Retirement Studies found that a large number of workers aged 60 or above have plans to work even after reaching their retirement ages. Some of the reasons included: the need for engagement and the need for more income. The study also established that 56% of workers aged 60 or higher had plans to work in retirement. This trend has implications for retirement planning and understanding how factors like healthcare costs and expected income determine the retirement age. Knowledge of the options and benefits that are available for people who remain employed during retirement can also help individuals make informed decisions regarding their retirement timing.

Retirement: A State of Mind

Do not underestimate the psychological factors that determine the age at which one should retire. Many people enjoy the opportunity to start anew. Some people delay retirement or go back to work to keep feeling useful. You will also have to change your attitude – from saving, to investing for income, and managing several income sources.

This is a multi-step process that will involve making decisions and calculations. You will also have to estimate your probable expenses, your retirement income, and how many years your retirement funds may have to last. It is also important that our Unisys Corporation customers take into consideration their life expectancy and health, when they would like to start receiving Social Security or pension benefits, and when they would like to start withdrawing from their retirement accounts.

These may be otherwise unrelated factors in a comprehensive plan for retirement income, and each of them may affect the others in some way.

Thinking About Early Retirement?

This means that early retirement from Unisys Corporation means fewer working years and more savings. Moreover, the earlier you retire from Unisys Corporation, the more years your retirement funds will have to support you. If you plan correctly, you may be retired for quite some time. According to the National Vital Statistics Report, the average lifespan today is more than 30 years longer than it was a century ago.

Your retirement savings will last longer and inflation will reduce your buying power. If the average inflation rate is 3% per year, as it has been since 1914, then a fixed annual income will be worth 50% of its purchasing power over about 23 years. You will probably require an annual rise in your retirement income to keep up with the cost of living when considering inflation. This should be taken into consideration when calculating how many years you believe you will be in retirement (or how many years you can afford to be in retirement).

Current Life Expectancy Estimates

Men	Women
At birth	76.2	81.2
At age 65	83.1	85.7

If you need it in another format or style, just let me know how you'd like it adjusted!

Source: NCHS Data Brief, Number 355, January 2020

There are some other things that Unisys Corporation clients should also know. For instance, if you expect to receive pension payments, early retirement may reduce them. Why? It is because the highest accumulation of benefits is usually in the last few years of your employment when you are likely to earn most. Early retirement may reduce the monthly benefits that you receive. It will also affect your Social Security benefits.

Also, you should note that if you plan to retire from Unisys Corporation before the age of 59 ½ and withdraw your 401(k) or IRA funds, then you are likely to incur a 10% early withdrawal penalty in addition to any ordinary income tax on the distribution (however, there are certain exemptions, including disability payments and 401(k) distributions after age 55 and termination of employment).

Finally, Medicare benefits are only available to those who are 65 years and above. If you are not eligible for retiree health benefits from Unisys Corporation or accept a job that offers health insurance, then you will need to find out how much you stand to pay for insurance or health care, at least until you are eligible for Medicare.

Postponing Retirement

Deferring your Unisys Corporation retirement allows you to keep on contributing to your retirement plans. This is especially good for you if you are contributing to tax deferred accounts and Unisys Corporation is contributing to your account as well. For instance, if you work for Unisys Corporation for 10 years longer, from age 65 instead of 55, and save $20,000 a year at an 8% rate of return, you could add $312,909 to your retirement fund. This example is hypothetical and does not represent the actual performance of any particular investment. Although you may no longer be adding to your retirement account, delaying retirement simply delays the time when you must begin taking distributions. This could enhance the ability of your nest egg to last throughout your lifetime.

You are given more time to transition by delaying your retirement from Unisys Corporation. If you anticipate transitioning from your full-time job to a small business or a new career once you “retire,” you might be able to get ready for a new life by taking nights classes or trying out your new role on a part-time basis. You can get a taste of what your post retirement work life will be like by phasing into your plans while you are still with Unisys Corporation. This is particularly important before relying on a new venture for retirement income, which can help you determine how much you can expect to earn from it. In addition, you will learn if it is something that you really want to do before investing what could be a large portion of your retirement funds into it.

Phased Retirement: The Best of Both Worlds

Some employers have started to offer phased retirement programs that allow you to collect all or part of your pension while still working part-time for the same employer.

As the baby boomers age, more people are interested in phased retirement programs. In the past, private sector pension law put pressure on employees to retire early. Classic pension plans usually did not permit payment of benefits before the employee ceased employment or reached the plan’s normal retirement age, which was usually 65. This often led employees who wanted to reduce their working hours but were not yet old enough to retire normally to accept early retirement and find another job (often at a competitor) and collect both a pension and a salary from their first employer.

Pension plans are now permitted to provide benefits to employees at age 62 if the employee is still employed and has not met the plan’s normal retirement age. Both the employee and the employer can benefit from a phased retirement strategy: The employee can work fewer hours and ease into retirement more gradually, while the employer can keep a seasoned employee. Phased retirement is not a required option for employers, but if Unisys Corporation does offer it, you should consider how it might affect your plans.

Key Decision Points	Age	Don’t forget...
Eligible to tap tax-deferred savings without penalty for early withdrawal	59 ½	Federal income taxes will be due on contributions and earnings made prior to taxation.
Eligible for early Social Security benefits	62	Taking retirement benefits before age 65 reduces monthly payments.
Eligible for Medicare	65	-

Check Your Assumptions

The sooner you start to think about the timing of your retirement from Unisys Corporation, the more opportunities you will have to make changes that will help to make those years be all that you want them to be. You may need to rethink some of your assumptions or decisions you have made so far if you are contemplating a phased retirement. As you move from Unisys Corporation into retirement, you will need to keep an eye on your retirement income plan to make sure that your initial assumptions are still good, that no new laws or regulations have affected your situation, and that your savings and investments are performing as they should.

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Conclusion

Investing in retirement can be compared to planting a tree. Just like a tree, a retirement investment needs time, patience, and care to grow and provide benefits in the future. It takes the right kind of environment – a diversified portfolio, for instance, and the advice of a financial adviser to thrive and weather the inevitable storms. However, like a tree, it can provide shade, shelter and beauty, and a well-planned retirement investment can provide security, comfort and a sense of fulfillment in later years.

Sources:

1. Collinson, Catherine. 'Workers Are Saving for Retirement Despite Challenges Amid the Pandemic.' Transamerica Center for Retirement Studies, 2021. Transamerica Institute. www.transamericainstitute.org .

2. Collinson, Catherine. 'The Road Ahead: Addressing Pandemic-Related Setbacks and Strengthening the U.S. Retirement System.' 22nd Annual Retirement Survey, 2021. Transamerica Institute. www.transamericainstitute.org .

3. Collinson, Catherine. '20th Annual Retirement Survey.' Transamerica Center for Retirement Studies, 2020. Transamerica Center. www.transamericacenter.net .

4. Collinson, Catherine. 'Four Generations of Workers Are Preparing for Retirement Amid an Uncertain Future.' Transamerica Institute, 2020. Transamerica Institute. www.transamericainstitute.org .

5. Collinson, Catherine. 'Employed Workers Are Saving for Retirement, but Many Are Not Saving Enough.' Transamerica Institute, 2021. Transamerica Institute. www.transamericainstitute.org .

What specific retirement options are available to employees of Unisys, and how do these options vary in terms of financial benefits, including considerations for early retirement vs. normal retirement age? In the context of the Unisys Pension Plan, what implications do these options have on long-term financial planning for employees at Unisys?

Retirement Options at Unisys: The Unisys Pension Plan provides options for normal, early, and unreduced retirement. Normal retirement is at age 65, and early retirement is available between ages 55 and 65, though benefits may be reduced for early retirement. Employees with at least 20 years of vesting service can retire without reductions from age 62. These options influence long-term financial planning as choosing early retirement may result in reduced benefits due to longer payout periods(Unisys_Corporation_Summ…).

How are pay credits calculated under the Unisys Pension Plan, and what factors might influence an employee's monthly pay credit pertaining to their Retirement Accumulation Account? Moreover, what are the potential impacts on retirement benefits if employees experience changes in their eligible pay during employment at Unisys?

Pay Credits Calculation: Pay credits under the Unisys Pension Plan were calculated at 4% of an employee’s eligible monthly pay from January 1, 2003, through December 31, 2006. Interest credits continue to accrue after this period until benefits are distributed. Changes in an employee’s eligible pay during employment will affect the total pay credits, thus impacting their retirement accumulation account(Unisys_Corporation_Summ…).

Can you explain the differences between credited service, eligibility service, and vesting service as defined by Unisys? What importance do these distinctions have on an employee's ability to access their retirement benefits, and how does each type of service contribute to the overall calculation of an employee's pension under the Unisys plan?

Service Types at Unisys: Credited service refers to the period used to calculate pension benefits, vesting service determines eligibility for receiving benefits, and eligibility service is the time required to become a participant in the plan. These distinctions are critical because credited service directly affects the benefit calculation, while vesting and eligibility service ensure employees qualify for benefits(Unisys_Corporation_Summ…).

What steps must Unisys employees take to initiate their pension benefits, and what specific information will they need to provide during the application process to ensure a smooth transition into retirement? Additionally, how does Unisys support employees in navigating this process, and what potential delays should employees be aware of?

Initiating Pension Benefits: To initiate pension benefits, employees must contact the Unisys Benefits Service Center and apply for their benefits. They must provide personal and employment details, including retirement age and chosen payout method (lump sum or annuity). Unisys supports employees through this process via their benefits service center, but delays can occur due to incomplete information or processing times(Unisys_Corporation_Summ…).

In what ways does the Unisys Pension Plan ensure protection for employees' benefits under federal law, particularly through the Pension Benefit Guaranty Corporation (PBGC)? How does this insurance work in practice, and what types of benefits are specifically covered or not covered by the PBGC for Unisys employees?

PBGC Insurance: Unisys Pension Plan benefits are protected under the Pension Benefit Guaranty Corporation (PBGC), ensuring employees receive guaranteed benefits even if the plan is terminated. However, certain benefits, such as non-qualified plans or supplemental executive retirement plans, may not be covered under PBGC(Unisys_Corporation_Summ…).

How might changes or amendments to the Unisys Pension Plan affect existing and future employees? In particular, what provisions does Unisys have in place to communicate significant changes in the plan to its employees, and what rights do employees have under ERISA if they disagree with these changes?

Impact of Plan Amendments: Any amendments to the Unisys Pension Plan could affect both existing and future employees. Unisys communicates significant changes through written notifications. Employees have rights under ERISA, including the right to challenge plan changes if they disagree with amendments that negatively affect their benefits(Unisys_Corporation_Summ…).

What considerations should employees of Unisys keep in mind regarding their benefits if they are nearing retirement age? Additionally, how can employees effectively prepare for potential changes to their health or work circumstances that could impact their retirement planning, given the options provided by Unisys?

Retirement Preparation: Employees nearing retirement should consider the timing of benefit elections, such as early or normal retirement. Preparing for potential health changes or shifts in work circumstances is essential, as these factors may alter retirement needs and benefit choices under the Unisys Pension Plan(Unisys_Corporation_Summ…).

What are the options available for Unisys employees who wish to designate beneficiaries for their retirement benefits, and how do these designations affect benefit distributions? Specifically, what criteria must be met for naming a contingent annuitant, and what restrictions might apply under the Unisys plan?

Beneficiary Designation: Unisys employees can designate beneficiaries for their retirement benefits. If a spouse is not the beneficiary, spousal consent may be required. A contingent annuitant can also be designated under certain restrictions, affecting the distribution of retirement benefits based on Unisys’ rules(Unisys_Corporation_Summ…).

How does the Unisys Benefits Service Center operate, and what resources are available for employees seeking information about their pension plans or retirement benefits? What are the best practices for contacting the Unisys Benefits Service Center to ensure that employees receive timely and accurate answers to their inquiries?

Unisys Benefits Service Center: The Unisys Benefits Service Center provides employees with resources for pension inquiries and applications. Best practices for contacting them include preparing all necessary personal and employment details to ensure timely and accurate responses(Unisys_Corporation_Summ…).

What are the most important elements of the Unisys Pension Plan that employees should review before retirement, and how can employees leverage the information provided in the summary plan description to optimize their retirement income? What role does employee education play in enhancing knowledge about these elements and ensuring informed decision-making about retirement benefits at Unisys?

Critical Pension Plan Elements: Employees should review their Retirement Accumulation Account, service years, and payout options before retirement. The summary plan description is a valuable resource for understanding how to maximize retirement income, and Unisys offers educational tools to help employees make informed decisions(Unisys_Corporation_Summ…).