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Discover the Top 5 Advantages of Continuing to Work in Retirement for AES Employees

Healthcare Provider Update: Offers health, dental, vision, life insurance, disability coverage, FSAs, HSAs, 401(k) with match, and wellness programs. Also includes legal services and education assistance. As ACA premiums rise, AESs flexible plan options and employer-sponsored coverage help employees avoid the financial burden of marketplace plans. Click here to learn more

In the past, retirement has been portrayed as an ending, a grand exit from your years in the workplace. But the rules are shifting. Labor force participation among those aged 65-74 is predicted to reach 32 percent by 2022, up from just 20 percent in 2002.(1) As the Boomer generation ages, more people are viewing retirement as an opportunity to enjoy the rewards of work in a whole new way. Read on to discover some of the benefits you can enjoy after you retire from AES.

1. Mental Benefits

Working during your AES retirement can help maintain mental agility as you learn new skills. Staying engaged in work helps build 'mental muscle,' which can lessen the risk of developing dementia and Alzheimers(2) and ward off the signs of aging.

2.. Physical Benefits

Staying active during your AES retirement years is crucial for continued health. Whether you choose to work full-time or volunteer a few days a week, engaging in some form of work will keep your body moving, and give you opportunities to stay balanced, strong, and healthy.

3. Financial Benefits

Besides the obvious extra income, working during your AES retirement may allow you to delay taking Social Security benefits. For every year you wait to take Social Security, your benefits can increase by an average of 8 percent annually.(3) Finding a strategy that works for you can truly pay off.

4. Emotional Benefits

Studies have shown that a sense of purpose has been found to lengthen lifespan and quality of life.4 Working on something you care about, starting a new business, or mentoring others in the workplace can ward off depression and provide a healthy sense of fulfillment and direction in your years or retirement from AES.

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5. Social Benefits

One of the risks associated with retirement is increased isolation, which in terms of its impact on your health, has been equated with smoking nearly a pack of cigarettes a day.5 Working with others reduces this risk, giving you a chance to build connections and enjoy meaningful interactions.

Sources

1. AARP.org, February/March 2015

2. Forbes, 2017

3. Social Security Administration, 2017

4. Association for Psychological Science, 2017

What is the AES 401(k) Savings Plan?

The AES 401(k) Savings Plan is a retirement savings plan that allows AES employees to save a portion of their salary on a pre-tax or Roth after-tax basis.

How does the AES 401(k) plan work?

Employees can contribute a percentage of their salary to the AES 401(k) plan, and AES may match a portion of those contributions, helping employees grow their retirement savings.

What is the maximum contribution limit for the AES 401(k) plan?

The maximum contribution limit for the AES 401(k) plan is determined by the IRS and may change annually. Employees should check the latest IRS guidelines for the current limit.

Does AES offer matching contributions to the 401(k) plan?

Yes, AES offers matching contributions to the 401(k) plan, which can help employees increase their retirement savings.

When can I enroll in the AES 401(k) Savings Plan?

Employees can typically enroll in the AES 401(k) Savings Plan during the initial onboarding process or during the annual open enrollment period.

How do I change my contribution percentage for the AES 401(k) plan?

You can change your contribution percentage for the AES 401(k) plan by accessing the employee benefits portal or contacting the HR department for assistance.

What investment options are available in the AES 401(k) plan?

The AES 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles, allowing employees to choose based on their risk tolerance.

Can I take a loan from my AES 401(k) plan?

Yes, AES allows employees to take loans from their 401(k) accounts under certain conditions. Employees should review the plan's loan policy for details.

What happens to my AES 401(k) if I leave the company?

If you leave AES, you have several options regarding your 401(k), including rolling it over to an IRA or a new employer’s plan, cashing it out, or leaving it in the AES plan if permitted.

Is there a vesting schedule for AES's matching contributions?

Yes, AES has a vesting schedule for matching contributions, meaning you must work for a certain period before you fully own the employer contributions made to your account.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

AES announced a significant restructuring effort in 2024 aimed at streamlining operations and improving efficiency. This includes potential layoffs and adjustments to employee benefits.

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For more information you can reach the plan administrator for AES at 4300 Wilson Boulevard, 11th Floor, Arlington, VA 22203; or by calling them at (703) 522-1315.