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 Ecolab 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 Ecolab 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 Ecolab 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 Ecolab , 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.

Those projections become more concrete when you map them against what Ecolab's benefits structure actually provides. For decisions around retirement planning, the retirement benefits you've already earned are the foundation everything else builds on.

The company offers retirement benefit programs including savings plan options with employer contributions, designed to help employees prepare for a secure financial future. Pair those retirement details with your healthcare picture and you can see the full scope of what you're working with. Health plan premiums, HSA balances, retiree medical eligibility, and the cost of bridging to Medicare at 65 all feed into the same income plan that should drive your retirement planning decisions.

A financial advisor who understands Ecolab's plan structure can help you model how these benefits coordinate with your other income sources, so your retirement planning decisions reflect your actual numbers rather than rules of thumb.