Navigating Your Retirement Options: A Comprehensive Guide for Johnson & Johnson Employees on 401(k), Social Security, and Pension Choices

Healthcare Provider Update: Healthcare Provider for Johnson & Johnson Johnson & Johnson (J&J) utilizes a variety of healthcare providers to support its extensive operations in pharmaceuticals, medical devices, and consumer health products. Their comprehensive approach encompasses various healthcare systems and insurance models, focusing on partnerships with leading hospitals, outpatient clinics, and specialty care providers across the globe. They also engage in numerous initiatives to improve healthcare access and outcomes, emphasizing collaboration with community health organizations and local providers. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are poised to rise dramatically, significantly impacting Johnson & Johnson's market dynamics. Factors contributing to this surge include expected spikes in Affordable Care Act (ACA) premiums, with some states anticipating increases exceeding 60%, alongside the potential expiration of enhanced federal subsidies. The Kaiser Family Foundation projects that without continued aid, more than 22 million ACA marketplace enrollees could face an out-of-pocket premium hike of over 75%. Consequently, these rises may strain consumer budgets and influence the healthcare landscape in which companies like Johnson & Johnson operate, as affordability challenges could drive a decrease in enrollment and engagement with health services. Click here to learn more

I am aware many of you are at a significant cross-road in life….. either voluntarily or involuntarily, may be leaving Johnson & Johnson

There are several options that you may come across, along with a list of questions you may have when that time comes.

With varying topics to go over when you're retiring, communicating with an adviser who can recommend you solid advice on how to proceed for life after Johnson & Johnson has many benefits. As a retiree, you will need to prepare for the collection on pension, 401K, and social security. With the guidance of a financial adviser, you will be able to understand how to choose the best route for your cash-balance pension, 401K, individual IRA, etc.

• Should I keep my options open as a Johnson & Johnson re-hire?
• Should I leave my money in the Johnson & Johnson 401K plan? Why or why not?
• What are the benefits to an individual IRA? 
• If I roll the money over, will I need to pay taxes?
• How can I get more money into a Roth IRA or at least get Roth-IRA style tax benefits?
• What are some steps I can take to maximize my retirement income?
• How can I stabilize my retirement income, and be sure it doesn’t run out?
• Should I take my cash balance pension, or leave it in the Johnson & Johnson Pension Plan? And why?
• What do I need to know about Social Security?
• How best can I protect my spouse but not decrease my Pension Payout via the survivor benefit?

What's tough about these is that every situation is unique and quite different. Simply put, there is no “one size fits all” plan. There is truly no way to tell if your current financial guidance is really the best. As folks pay for planning services (fees based), their willingness to seek a 2nd opinion evaporates as they have already placed an initial investment in. They won't want to spend additional money to get a 2nd opinion which will inhibit them from comparing the advice they receive.

Good planning — or any planning — will always be better than none. But, an effective plan isn’t simply developed and then placed on auto pilot. You need to continuously reassess your decisions and direction.

Articles you may find interesting:

This theory is particularly relevant during big “transitions” in life. These would include getting a new job, leaving a job, retiring, the death of a loved one, kids leaving home, etc.

We understand these topics can be confusing and extensive. If you currently don’t have anyone to help run down your options, tax implications, and pros and cons of either your existing strategy OR if you simply just need a “2nd opinion” on your existing plan or planner, please let me know here so that I can reach out to current clients or referrals to assist you.

Your finances will inevitably be squeezed without the certainty of a regular income and any form of financial assistance can lower stress levels. Run a cash flow projection and budget before you leave the company to determine how to leave. Get a free consultation from an adviser who have years of experience servicing Johnson & Johnson employees.

The first step is to run a cash flow to determine an adequate income. The cash flow will assist you in determining how to take severance. When receiving a pension, a cash flow will determine how much money you need to make to supplement the monthly retirement annuity. Take into mind, for a lot of people, it is recommended relocating for a year or two to reach your Mod-75. For more information on the Mod-75, take a look here. One of the costliest mistakes many people make is not relocating.

After running a cash flow, begin to construct your budget. First, make a list of your major household expenses (mortgage, rent payments, utility bills, etc.). Next, jot down all of your assets and sources of income (severance pay, unemployment benefits, savings, food stamps, and so on). Lastly, adapt your budget to fit with your new circumstances.

Trim any unnecessary outgoings, develop a plan for spending less, and consider contacting creditors to refinance your mortgage or reschedule any repayment plans. (You may be able to take a mortgage “payment holiday” in the short term.)

Knowing how much time your resources will allow you for job hunting can help you to keep stress and anxiety in check. After all, having time can be the difference between rushing to take the first mediocre job you can find, and finding a satisfying job that you’ll love. With a guide of a financial advisor, see if your severance can give you extended time to look for another job.

You may also need to consider taking on temporary or freelance work to bring in short-term cash. Keep this in mind, and look into it in the first few days after your departure.

We understand that this can be an emotional time, but remember, there's always light at the end of the tunnel.