New Update: Rising Oil Costs are Affecting Retirement Plans. Will you be impacted?
6 Retirement Myths Every Belden Employee Should Not Fall For!
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Oil prices between $50 and $120 per barrel with 80% annualized volatility have created ripple effects throughout the economy over the past six months. Persistent oil volatility creates a macro backdrop of uncertainty that affects corporate planning, consumer confidence, and investment returns across all sectors. For Belden employees, this environment means that energy holdings within 401(k) index funds, inflation-adjusted benefit calculations, and even real estate values can shift with crude price movements. Retirement savings strategies at Belden should account for how energy price cycles influence inflation, interest rates, and market returns over the long horizons that retirement planning requires. Professional guidance can help you navigate the indirect effects of oil volatility on your retirement planning and ensure your strategy accounts for these dynamics.
During our 30+ years helping retirees, the majority have been very excited to start the planning process. However, some have been surprised to find out our recommendations differ from what they have heard elsewhere.
This is because there’s a lot of misinformation swirling around. As a fiduciary, we are legally obligated to serve your best interests at all times. So, we can tell you achieving the retirement you desire is not going to happen if you’re sidetracked by myths and false information.
That's why we aim to debunk the top six retirement myths that Belden employees may have heard. Our goal is to help you start building the retirement of your dreams today.
Myth #1: If I receive a pension, I do not have to make any decisions regarding my pension.
If Belden offers you a defined-benefit plan, your pension is primarily the responsibility of the company. However, that doesn’t mean you just wait for a check in the mail once you retire. You have major decisions to make.
If offered a pension, employees can potentially elect to receive a monthly payout like a traditional pension or they could convert their pension into a one-time lump-sum benefit, which can be subsequently rolled over into an Individual Retirement Account (IRA) and then controlled by the retiree.
So, monthly or lump-sum pension?
Each payout has its own set of pros and cons. Deciding which option is most appropriate for you involves many factors. Deciding which option is most appropriate for you involves many factors. It is best done with the help of a professional, who can incorporate all aspects of your financial life – Social Security, 401(k), real estate, and inheritance into your decision.
Further, married Belden employees may have survivor benefit options to consider. At retirement, it is possible that you have multiple survivor options to choose from for the monthly pension, but these are only available for a qualified spouse.
Myth #2: If I receive a pension from Belden , Social Security becomes less important.
Social Security will likely be one of your primary sources of retirement income. And just like your pension, you should carefully consider how best to use it based on your personal needs.
The size of your Social Security benefit is greatly determined by your age when you claim. You can receive your full Social Security retirement benefit upon reaching your Full Retirement Age, which is age 66 or 67, depending on your date of birth. But you can claim a permanently reduced benefit as early as age 62. Delaying Social Security until age 70 entitles you to a higher benefit of up to 8% per year. A benefit at age 70 will be 76-77% higher than the payout if you start at age 62.
Ultimately, factors such as your other income sources, marital status and health should guide your decision, not just when you can get the biggest Social Security paycheck.
Myth #3: When I retire from Belden doesn’t matter
No, no, no. When you retire has a major effect on the quality of your retirement.
For one, years of service is one of the primary factors in your pension calculation. Generally, the longer you work at Belden, the higher your pension. Your pension is also impacted by interest rates, which fluctuate. When rates are lowered, lump-sum pension payouts are increased, and vice versa.
Plus, Belden retirement benefits are not set in stone. They are subject to change. For example, the significant changes made to Belden’s pension calculation, health care subsidies and retiree health insurance.
You may find that it is more financially advantageous to retire sooner or later than your desired retirement date.
Myth #4: Belden stock is a good investment
Something Belden employees should be aware of is that we commonly see employees invest an excessive amount of their 401(k) in their company’s stock. While it can be rewarding to own a piece of a respected company, it may be risky from a retirement planning perspective.
Firstly, most of your financial life becomes dependent on the performance of one company. That includes your current income and retirement income from the Belden pension and 401(k) plan (if Belden offers these to you). Such a high concentration of your financial well-being in a single company is risky. Secondly, a single stock can be riskier and more volatile than a mutual fund or the broader stock market. Therefore, the greater amount of Belden stock you have in your 401(k), the more you can expect your investment return to fluctuate.
It’s more appropriate to diversify the investment choices in your Belden 401(k) account (If Belden offers you a 401K). That means selling your company stock and investing in mutual funds. The right mix of funds depends on your specific needs, goals and level of risk you’re comfortable with.
Myth #5: It’s better to leave my 401(k) with my company.
Upon leaving Belden, you may leave some or all of your savings in your Belden 401(k) account (If this is offered to you). However, there are a variety of benefits to rolling over your 401(k) to an Individual Retirement Account (IRA). These include greater investment choices, greater withdrawal flexibility, more withholding options, and professional management by an advisor of your choosing.
When done properly, no tax applies to the rollover. One area of your 401(k) that provides no flexibility is tax withholdings.Every withdrawal is subject to a mandatory 20% federal tax plus applicable state taxes.
Myth #6: Medicare will cover my medical expenses
One of the biggest expenses for most people in retirement is health care. Taking the time to review your options can help you plan accordingly and avoid large out-of-pocket costs that could derail your retirement.
Once you turn 65 you are Medicare-eligible You and your Medicare-eligible dependents are required to enroll in Medicare Part A (hospital benefits) and Part B (doctor benefits). These two parts cover about 80% of health care benefits for individuals, so it’s important to consider your supplemental coverage options.
That same shift from growing assets to drawing them down applies directly to the pension decisions in front of you at Belden. Belden maintains an active defined benefit pension plan, meaning eligible employees continue to accrue benefits based on years of service and compensation. If you are eligible for a lump sum payout, IRS Section 417(e) segment rates determine how the future annuity stream converts to a present-value payment - rising rates compress the lump sum, so monitoring the plan's stability period and lookback month is critical before you lock in your election date. The choice between a single-life annuity, a joint-and-survivor option, or a lump sum (where available) is generally irrevocable once made, and timing that decision relative to interest rate conditions can meaningfully affect your retirement income picture.
On the healthcare side, Belden provides continued medical coverage to eligible retirees, which can bridge the gap between retirement and Medicare eligibility at age 65 or serve as a supplement to Medicare thereafter. Confirming the service and age requirements for retiree coverage, and understanding your premium contribution, is an important step in building an accurate healthcare cost projection. Coordinating Belden's retiree coverage with Medicare Part B and Part D enrollment timing can also reduce duplication and avoid late-enrollment penalties. Connecting your specific Belden benefits situation to a comprehensive retirement income plan - and understanding how each component interacts - gives you the most complete picture of what retirement will look like.
What is the primary purpose of Belden's 401(k) Savings Plan?
The primary purpose of Belden's 401(k) Savings Plan is to help employees save for retirement by allowing them to contribute a portion of their salary on a tax-deferred basis.
How can employees enroll in Belden's 401(k) Savings Plan?
Employees can enroll in Belden's 401(k) Savings Plan by accessing the benefits portal or contacting the HR department for guidance on the enrollment process.
What types of contributions can employees make to Belden's 401(k) Savings Plan?
Employees can make pre-tax contributions, Roth (after-tax) contributions, and may also be eligible for employer matching contributions in Belden's 401(k) Savings Plan.
Is there a company match for contributions made to Belden's 401(k) Savings Plan?
Yes, Belden offers a company match for employee contributions to the 401(k) Savings Plan, which helps employees increase their retirement savings.
What is the vesting schedule for employer contributions in Belden's 401(k) Savings Plan?
The vesting schedule for employer contributions in Belden's 401(k) Savings Plan typically follows a graded vesting schedule, which means employees earn ownership of the contributions over a specified period.
Can employees change their contribution percentage at Belden?
Yes, employees can change their contribution percentage to Belden's 401(k) Savings Plan at any time, usually through the benefits portal or by contacting HR.
What investment options are available in Belden's 401(k) Savings Plan?
Belden's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.
At what age can employees begin to withdraw from Belden's 401(k) Savings Plan without penalties?
Employees can begin to withdraw from Belden's 401(k) Savings Plan without penalties at age 59½, provided they meet other plan requirements.
What happens to an employee's 401(k) balance if they leave Belden?
If an employee leaves Belden, they can choose to roll over their 401(k) balance to another retirement account, withdraw the funds, or leave the balance in the plan if allowed.
Does Belden's 401(k) Savings Plan allow loans against the account?
Yes, Belden's 401(k) Savings Plan may allow employees to take loans against their account balance, subject to specific terms and conditions outlined in the plan documents.
For more information you can reach the plan administrator for Belden at 1 North Brentwood Blvd St. Louis, MO 63105; or by calling them at +1 314-854-8000.
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