New Update: Rising Oil Costs are Affecting Retirement Plans. Will you be impacted?
6 Retirement Myths Every Jones Lang LaSalle Employee Should Not Fall For!
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Oil market turbulence continues to ripple through the broader economy, with crude swinging between $50 and $120 per barrel and annualized volatility near 80%. Operating costs for commercial properties and the macro channel of interest rates and cap rate compression create meaningful exposure to sustained oil price volatility. Retirement savings strategies at Jones Lang LaSalle should account for how energy price cycles influence inflation, interest rates, and market returns over the long horizons that retirement planning requires. In this environment, a financial advisor can help you assess your exposure to oil-driven economic effects and build appropriately diversified strategies.
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 Jones Lang LaSalle 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 Jones Lang LaSalle 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 Jones Lang LaSalle 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 Jones Lang LaSalle , 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 Jones Lang LaSalle 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 Jones Lang LaSalle, 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, Jones Lang LaSalle retirement benefits are not set in stone. They are subject to change. For example, the significant changes made to Jones Lang LaSalle’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: Jones Lang LaSalle stock is a good investment
Something Jones Lang LaSalle 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 Jones Lang LaSalle pension and 401(k) plan (if Jones Lang LaSalle 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 Jones Lang LaSalle 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 Jones Lang LaSalle 401(k) account (If Jones Lang LaSalle 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 Jones Lang LaSalle, you may leave some or all of your savings in your Jones Lang LaSalle 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 Jones Lang LaSalle. Jones Lang LaSalle 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, Jones Lang LaSalle 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 Jones Lang LaSalle 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 401(k) plan offered by Jones Lang LaSalle?
The 401(k) plan at Jones Lang LaSalle is a retirement savings plan that allows employees to save a portion of their salary on a pre-tax basis, helping them build a nest egg for retirement.
Does Jones Lang LaSalle match employee contributions to the 401(k) plan?
Yes, Jones Lang LaSalle offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.
How can employees at Jones Lang LaSalle enroll in the 401(k) plan?
Employees can enroll in the 401(k) plan at Jones Lang LaSalle by accessing the benefits portal or contacting the HR department for assistance.
What types of investment options are available in the Jones Lang LaSalle 401(k) plan?
The Jones Lang LaSalle 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.
When can employees at Jones Lang LaSalle start contributing to their 401(k) plan?
Employees at Jones Lang LaSalle can typically start contributing to their 401(k) plan after completing their initial eligibility period, which is outlined in the employee handbook.
Is there a vesting schedule for the employer match in the Jones Lang LaSalle 401(k) plan?
Yes, Jones Lang LaSalle has a vesting schedule for the employer match, which means employees must work for a certain period to fully own the matched contributions.
Can employees take loans against their 401(k) savings at Jones Lang LaSalle?
Yes, employees can take loans against their 401(k) savings at Jones Lang LaSalle, subject to specific terms and conditions outlined in the plan documents.
What happens to the 401(k) plan if an employee leaves Jones Lang LaSalle?
If an employee leaves Jones Lang LaSalle, they have several options for their 401(k) plan, including rolling it over to an IRA or a new employer's plan, or cashing it out.
How often can employees change their contribution rate to the Jones Lang LaSalle 401(k) plan?
Employees at Jones Lang LaSalle can change their contribution rate to the 401(k) plan at designated times throughout the year, as specified in the plan guidelines.
Are there any fees associated with the 401(k) plan at Jones Lang LaSalle?
Yes, there may be fees associated with the 401(k) plan at Jones Lang LaSalle, which are disclosed in the plan documents and can vary based on investment choices.
For more information you can reach the plan administrator for Jones Lang LaSalle at , ; or by calling them at .
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