New Update: Rising Oil Costs are Affecting Retirement Plans. Will you be impacted?
6 Retirement Myths Every International Paper Employee Should Not Fall For!
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Oil market turbulence continues to ripple through the broader economy, with a closing futures price of $82.40 for WTI and $88.53 for Brent as of August 14, 2026 and annualized volatility near 80%. Even for companies outside the energy sector, sustained crude price volatility affects the economic environment through inflation, borrowing costs, and consumer spending patterns. International Paper employees with diversified retirement portfolios likely hold energy sector exposure through index funds and target-date strategies, meaning oil price swings can affect account balances in ways that are not immediately obvious. International Paper employees building long-term savings should recognize that oil-driven economic conditions can affect both the growth of their portfolios and the purchasing power of their eventual retirement income. In this environment, a financial advisor can help you assess your exposure to oil-driven economic effects and build appropriately diversified strategies.
Source: Yahoo Finance
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 International Paper employees may have heard. Our goal is to help you start building the retirement of your dreams today.
What pension decisions must International Paper employees make?
International Paper pension recipients must decide between receiving monthly payouts or converting their pension into a lump-sum benefit rolled into an IRA.
Myth #1: If I receive a pension, I do not have to make any decisions regarding my pension.
If International Paper 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 International Paper 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.
How does Social Security factor into International Paper retirement planning?
Social Security serves as a primary retirement income source, and benefit amounts depend significantly on the age when claiming begins.
Myth #2: If I receive a pension from International Paper , 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.
Recent International Paper coverage centers on developments that may matter to employees and retirement plan participants: Wall Street's Most Accurate Analysts Spotlight On 3 Materials Stocks Delivering High-Dividend Yields.
Source: Currents API / Google News
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 International Paper 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 International Paper, 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, International Paper retirement benefits are not set in stone. They are subject to change. For example, the significant changes made to International Paper’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: International Paper stock is a good investment
Something International Paper 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 International Paper pension and 401(k) plan (if International Paper 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 International Paper 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 International Paper 401(k) account (If International Paper 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 International Paper, you may leave some or all of your savings in your International Paper 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.
Closing that savings gap starts with fully understanding what International Paper already contributes on your behalf. When you're weighing retirement planning, the specifics of your employer's retirement plan change the math in ways that generic advice can't capture.
Employees have access to retirement savings programs with company contributions, along with healthcare benefits that complement their overall compensation package. And your healthcare benefits deserve equal attention. The health plan tier you choose, whether an HSA-eligible option could save you money long term, and what happens to your medical coverage when you leave International Paper are all connected to how retirement planning plays out in practice.
Taking the time to review your International Paper benefits in the context of retirement planning, rather than treating them as separate decisions, is how you avoid the gaps that catch most employees off guard.
What is the primary purpose of the 401(k) plan offered by International Paper?
The primary purpose of the 401(k) plan at International Paper is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax basis.
Who is eligible to participate in the International Paper 401(k) plan?
All eligible employees of International Paper, typically those who meet certain age and service requirements, can participate in the 401(k) plan.
How does International Paper match employee contributions to the 401(k) plan?
International Paper provides a matching contribution to the 401(k) plan, which is a percentage of the employee's contributions, up to a specified limit.
Can employees of International Paper change their contribution percentage to the 401(k) plan?
Yes, employees of International Paper can change their contribution percentage at any time, subject to plan rules.
What investment options are available in the International Paper 401(k) plan?
The International Paper 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
Is there a vesting schedule for the employer match in the International Paper 401(k) plan?
Yes, International Paper has a vesting schedule for the employer match, meaning employees must work for a certain period before they fully own the matched contributions.
How can employees of International Paper access their 401(k) account information?
Employees can access their 401(k) account information through the International Paper employee portal or by contacting the plan administrator.
Are loans available from the International Paper 401(k) plan?
Yes, employees may have the option to take loans from their International Paper 401(k) plan, subject to specific terms and conditions.
What happens to an employee's 401(k) account when they leave International Paper?
When an employee leaves International Paper, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the International Paper plan if allowed.
Does International Paper offer financial education resources for employees regarding the 401(k) plan?
Yes, International Paper provides financial education resources and tools to help employees make informed decisions about their 401(k) savings.
For more information you can reach the plan administrator for International Paper at , ; or by calling them at .
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