New Update: Rising Oil Costs are Affecting Retirement Plans. Will you be impacted?
6 Retirement Myths Every Humana Employee Should Not Fall For!
/General/General%209.png?width=1280&height=853&name=General%209.png)
Oil prices between $50 and $120 per barrel with 80% annualized volatility have created ripple effects throughout the economy over the past six months. Facility energy costs, ambulance fleet fuel, and medical supply chain logistics connect healthcare service providers to sustained oil price movements. Retirement savings strategies at Humana 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 Humana 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 Humana 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 Humana 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 Humana , 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 Humana 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 Humana, 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, Humana retirement benefits are not set in stone. They are subject to change. For example, the significant changes made to Humana’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: Humana stock is a good investment
Something Humana 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 Humana pension and 401(k) plan (if Humana 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 Humana 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 Humana 401(k) account (If Humana 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 Humana, you may leave some or all of your savings in your Humana 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 Humana. Without a traditional pension, your 401(k) - alongside Social Security - forms the foundation of your retirement income at Humana. Humana may offer a 401(k) employer match - review your Summary Plan Description for current match rate and vesting details. Your overall withdrawal strategy, account sequence, and Roth conversion opportunities leading up to and into retirement deserve careful, personalized analysis given the income-sequencing implications.
On the healthcare side, Humana does not offer continued medical coverage to retirees, which means coverage through the company ends when employment does. Planning for the cost of health insurance during any gap between your retirement date and Medicare eligibility at age 65 is a critical step - marketplace coverage, COBRA continuation, or a spouse's employer plan are common options. Building an accurate estimate of bridge-coverage costs into your retirement income projection prevents underestimating one of the largest variable expenses retirees face. Connecting your specific Humana 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 purpose of Humana's 401(k) Savings Plan?
The purpose of Humana's 401(k) Savings Plan is to help employees save for retirement by allowing them to contribute a portion of their salary to a tax-advantaged account.
How can employees enroll in Humana's 401(k) Savings Plan?
Employees can enroll in Humana's 401(k) Savings Plan through the company’s benefits portal during the open enrollment period or within 30 days of their hire date.
Does Humana offer a matching contribution for its 401(k) Savings Plan?
Yes, Humana provides a matching contribution to the 401(k) Savings Plan, which helps employees boost their retirement savings.
What types of investment options are available in Humana's 401(k) Savings Plan?
Humana's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles tailored to different risk tolerances.
Can employees change their contribution percentage in Humana's 401(k) Savings Plan?
Yes, employees can change their contribution percentage at any time through Humana’s benefits portal.
What is the minimum contribution required to participate in Humana's 401(k) Savings Plan?
The minimum contribution required to participate in Humana's 401(k) Savings Plan is typically set at 1% of an employee’s salary, but employees can choose to contribute more.
When can employees access their funds in Humana's 401(k) Savings Plan?
Employees can access their funds in Humana's 401(k) Savings Plan upon reaching retirement age, or in cases of financial hardship, as defined by the plan.
Are there any fees associated with Humana's 401(k) Savings Plan?
Yes, there may be administrative fees and investment-related fees associated with Humana's 401(k) Savings Plan, which are outlined in the plan documents.
How does Humana educate employees about the 401(k) Savings Plan?
Humana provides educational resources, including workshops, webinars, and one-on-one consultations, to help employees understand and maximize their 401(k) Savings Plan benefits.
Can employees roll over funds from another retirement account into Humana's 401(k) Savings Plan?
Yes, employees can roll over funds from other qualified retirement accounts into Humana's 401(k) Savings Plan.
For more information you can reach the plan administrator for Humana at , ; or by calling them at .
Help shape our next stories
Choose the topics you’d love to read more about. Your input helps us focus on content that matters to you.