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

How Tri Pointe Homes Employees Can Navigate the Impact of Inflation on Their Pension Choices

Healthcare Provider Update: Healthcare Provider for Tri Pointe Homes Tri Pointe Homes employees typically have access to a variety of healthcare options, with the Retirement Group, a division of Wealth Enhancement, recognized as a key partner in providing guidance for health care planning and retirement strategies. Potential Healthcare Cost Increases for 2026 Anticipated healthcare costs for employees of Tri Pointe Homes are expected to rise significantly in 2026 due to upcoming changes in the Affordable Care Act (ACA). Without renewed federal premium subsidies, average out-of-pocket expenses may soar by over 75%, impacting nearly all marketplace enrollees. This surge, driven by heightened medical costs and substantial insurer rate hikes averaging up to 66% in certain states, could strain the budgets of many, particularly those on fixed incomes or nearing retirement. Employees are encouraged to proactively reassess their healthcare strategies to navigate these looming financial challenges effectively. Click here to learn more

Rising interest rates also play a large role in the decision of whether Tri Pointe Homes employees should take their pension as an annuity or a one-time lump sum payment. As inflation continues to rise, the Fed has responded by gradually increasing interest rates, which decreases the value of future pension payments as well as the lump sum value. This is because the future pension payments are worth less today as the dollar devalues and the higher investment return drives the total present value of the payments down. To show this mathematically, imagine an individual with pension payments of $48,000 annually ($4,000 monthly), a 20-year time horizon, and a 5% interest rate

The present value of all of these payments is worth $598,186, which should roughly be the value of the lump sum payment. With a single percentage increase in interest rates from 5% to 6%, the new present value of the payments is reduced to $550,556, just under an 8% decrease over the old present value. Evidently, rising interest rates negatively affect the present value of future payments so given Federal Reserve Chairman Jerome Powell’s mention of 2-3 more interest rate hikes this year, the decision of whether to take a lump sum now or later could have a big impact on your retirement from Tri Pointe Homes.

'Taking your pension as a lump sum and knowing how to manage your funds to last for your retirement requires hard work.'

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In practicality, taking your pension as a lump sum and knowing how to manage your funds to last for your years of retirement from Tri Pointe Homes requires hard work. Figuring out how much to withdraw, when to withdraw, and how much you can spend each year are just a few of the many decisions that are needed to be thought out in order to maximize the benefit of taking your pension as a lump sum. If you don’t take the time to think out these decisions, you could find yourself running out of funds during your years of retirement from Tri Pointe Homes.

For our Tri Pointe Homes clients who would prefer the safety of a guaranteed stream of income for the rest of their lives, taking the annuity over the lump sum may be the better option for you. With taking your pension as an annuity though, there is no certainty that the company paying your pension will remain in business for the duration of your retirement so you run the risk of receiving smaller pension payments from the PBGC (Pension Benefit Guaranty Corporation) in the event that Tri Pointe Homes goes under. Both options have their pros and cons and in the end up to you to decide which suits your personal financial situation and lifestyle.

If you are interested in more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/effects-of-inflation-e-brochure

What type of retirement plan does Tri Pointe Homes offer to its employees?

Tri Pointe Homes offers a 401(k) retirement savings plan to help employees save for their future.

How can employees of Tri Pointe Homes enroll in the 401(k) plan?

Employees of Tri Pointe Homes can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.

Does Tri Pointe Homes provide a matching contribution for the 401(k) plan?

Yes, Tri Pointe Homes offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the vesting schedule for the 401(k) match at Tri Pointe Homes?

The vesting schedule for the 401(k) match at Tri Pointe Homes typically follows a standard timeline, which employees can review in the plan documents provided by HR.

Can employees of Tri Pointe Homes take loans against their 401(k) savings?

Yes, employees of Tri Pointe Homes may have the option to take loans against their 401(k) savings, subject to the terms and conditions of the plan.

What investment options are available in the Tri Pointe Homes 401(k) plan?

The Tri Pointe Homes 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

How often can employees of Tri Pointe Homes change their 401(k) contributions?

Employees of Tri Pointe Homes can change their 401(k) contribution amounts at any time, subject to the plan’s guidelines.

Is there a minimum contribution requirement for the 401(k) plan at Tri Pointe Homes?

Yes, Tri Pointe Homes may have a minimum contribution requirement for the 401(k) plan, which employees should verify in the plan documents.

What is the eligibility criteria for participating in the 401(k) plan at Tri Pointe Homes?

Employees of Tri Pointe Homes typically become eligible to participate in the 401(k) plan after completing a certain period of service, as outlined in the plan details.

How can employees access their 401(k) account information at Tri Pointe Homes?

Employees can access their 401(k) account information through the online portal provided by the plan administrator or by contacting the HR department at Tri Pointe Homes.