The Path to Retirement for Cigna Employees: What Will Your Journey Look Like?

What Does Retirement Look Like to You?

Imagine your last day of work at Cigna. You say goodbye to your co-workers, turn in your key, and maybe even enjoy a few celebrations in honor of a lifetime of hard work. Now imagine your life one month into your retirement from Cigna. Will you be mapping out your next adventure, or strategizing how to maintain your lifestyle?

Where you end up in retirement after leaving Cigna depends a lot on the route you took to get there. There was a time when most Americans traveled the same path to retirement. A steady pension from their employers combined with a stable Social Security fund and, often, some personal savings helped most Americans reach the retirement they worked hard for. Today, that road is inaccessible to many people as pensions are dying off and the longevity of Social Security has come under question.

Further complicating the journey are some roadblocks that have been thrown up by recent economic factors and a trend toward longer life expectancy. Americans are living longer than ever before. According to the Social Security Administration, those reaching age 65 can expect to live at least another 20 years,[6] meaning their retirement income will have to stretch over a longer period than in the past. Congress is considering a SECURE Act 2.0 which could change retirement planning. If passed, the required minimum distribution (RMD) age will increase again. Retirees could begin delaying RMDs from age 72 to 73 in 2022. [7]

Create a Smooth Path

No single path to retirement will be right for everyone, but there are some things people can consider to help themselves make the most of their retirement savings and income opportunities. They include:

Delaying your retirement date from Cigna to give yourself extra earning years and fewer years you’ll have to draw on your assets.

Taking advantage of any Cigna-sponsored retirement savings programs. If Cigna provides a “match” on your contributions, make sure you’re contributing at least up to the match amount.

Recognizing that you’ll need a plan for meeting your healthcare needs that doesn’t rely solely on Medicare. Knowing whether Cigna offers retiree health benefits, and, if so, what they are. If not, you might want to consider exploring other options to help cover potentially increasing healthcare costs.

Understanding the requirements and potential tax penalties associated with withdrawals from qualified retirement savings accounts. Also, be aware of the possible impacts your total retirement income can have on your tax bracket in retirement.

Identifying sources of lifetime income. Social Security is one, and you’ll want to be sure you’re making the most of your benefits by having a plan in place for when to begin receiving distributions. Another option is an annuity, which can provide guaranteed lifetime income.

Take advantage of catch-up contributions if you are age 50 or older. The catch-up contribution limit is $6,500 in 2022 and it can help you save money on taxes and reach your retirement goal.

If you have any questions about your Cigna retiree health care benefits, you can reach out to your Cigna HR Department.

*Guarantees are backed by the financial strength and claims-paying ability of the issuing insurer. Annuities may be subject to restrictions, limitations or early withdrawal fees. Annuities are not bank or FDIC insured.

Consider Working With a Financial Professional

With the responsibility of planning for retirement income falling more heavily on the individual than ever before, it’s important to have a retirement income strategy you feel confident in. But there’s so much to consider and understand, making it easy to get overwhelmed. That’s why Cigna employees, should consider working with a financial professional who is familiar with strategies that may help their assets last throughout their lifetime.

Our firm has worked with countless Cigna professionals and can help identify the questions you need to ask as you prepare for your Cigna retirement. We will also educate you on things to consider as you weigh different retirement income vehicles and strategies. You’ve worked hard to build your retirement savings. We can provide guidance for aligning your retirement assets to help build the retirement lifestyle you’ve dreamed of.

About The Retirement Group

The Retirement Group is a nationwide group of financial advisors who work together as a team.

We focus entirely on retirement planning and the design of retirement portfolios for transitioning Cigna corporate employees. Each representative of the group has been hand-selected by The Retirement Group in select cities of the United States. Each advisor was selected based on their pension expertise, experience in financial planning, and portfolio construction knowledge.

TRG takes a teamwork approach in providing the best possible solutions for our Cigna clients’ concerns. The Team has a conservative investment philosophy and diversifies client portfolios with laddered bonds, CDs, mutual funds, ETFs, Annuities, Stocks, and other investments to help achieve their goals. The team addresses Retirement, Pension, Tax, Asset Allocation, Estate, and Elder Care issues. This document utilizes various research tools and techniques. A variety of assumptions and judgmental elements are inevitably inherent in any attempt to estimate future results and, consequently, such results should be viewed as tentative estimations. Changes in the law, investment climate, interest rates, and personal circumstances will have profound effects on both the accuracy of our estimations and the suitability of our recommendations. The need for ongoing sensitivity to change and for constant re-examination and alteration of the plan is thus apparent.

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Therefore, we encourage you to have your plan updated a few months before your potential retirement date as well as an annual review. It should be emphasized that neither The Retirement Group, LLC nor any of its employees can engage in the practice of law or accounting and that nothing in this document should be taken as an effort to do so. We look forward to working with tax and/or legal professionals you may select to discuss the relevant ramifications of our recommendations.

Throughout your retirement years we will continue to update you on issues affecting your retirement through our complimentary and proprietary newsletters, workshops and regular updates. You may always reach us at (800) 900-5867.