<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=314834185700910&amp;ev=PageView&amp;noscript=1">

New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Learn More

9 Facts About Retirement for PG&E Employees

image-table

Healthcare Provider Update: Healthcare Provider for Pacific Gas & Electric The primary healthcare provider for employees of Pacific Gas and Electric (PG&E) is often covered under large insurance carriers that offer comprehensive plans, including offerings from Blue Cross Blue Shield and UnitedHealthcare; the exact provider may vary depending on the employee's specific plan and regional options available. Projected Healthcare Cost Increases in 2026 As we look ahead to 2026, healthcare costs are anticipated to rise significantly due to a combination of factors. Insurers are reporting average premium increases that could exceed 20%, driven largely by ongoing inflation in healthcare services and the potential expiration of enhanced subsidies provided under the Affordable Care Act. This perfect storm of rising medical costs and diminished financial support could shock many consumers, with estimates suggesting that out-of-pocket premiums might surge by as much as 75% for individuals reliant on marketplace plans. As such, both employees and employers within PG&E should prepare for heightened expenses, taking proactive steps now to mitigate potential financial impacts. Click here to learn more

'PG&E employees have to be aware of the changing retirement landscape and adjust their strategies to ensure financial security into old age,' says Tyson Mavar, of The Retirement Group, a division of Wealth Enhancement Group. Planning ahead and getting professional help may also improve your retirement readiness, 'she said.

As the demographic shift increases the number of retirees, PG&E employees need to plan for the future, 'says Wesley Boudreaux of The Retirement Group, a division of Wealth Enhancement Group. Stepping up now will help secure an enjoyable retirement, 'she said.

In this article we will discuss:

1. The idea of retirement age: Perception and Reality. Find out how standard retirement age is perceived among PG&E personnel and its history.

2. Demographic Shifts & Their Impacts: Look at major demographic changes as baby boomers enter retirement age and the growing share of the population they represent.

3. Retirement Financial and Health Considerations: Talk about retirement readiness, dependency on Social Security and health stats affecting lifestyle choices.

For PG&E personnel, retirement has many meanings. Others will travel and visit relatives. Some will see it as a time to start a new business or a charitable endeavor. But whatever your plan is, nine things about retirement might surprise you.

Some in PG&E consider 65 the standard retirement age. Key influencers on that age were Germany, which set its retirement age at 70 and lowered it to 65.

Between now and the end of next decade, another 10,000 baby boomers will turn 65 every day. About one person every 8 seconds.

People over 65 are expected to make up more than one in four Americans by 2060.

Social Security was first earned by Ernest Ackerman. The Cleveland streetcar motorman received a 17¢ lump-sum payment in March 1937. Ackerman worked 1 day on Social Security. He earned USD 5 for the day and paid a nickel in payroll taxes. His lump-sum payout was 3.5% of wages.

67 percent of retirees say they feel confident they can live comfortably in retirement. PG&E companies should recognize that statistic and plan for retirement.

And people over 65 account for 34% of all prescription and 30% of all over the counter medication use.

About nine out of 10 adults over age 65 say they have taken at least one prescription drug in the last 30 days.

59 percent of PG&E retirees relied on Social Security for major income. The average monthly Social Security benefit in January 2019 was USD 1,461. Centenarians - in 1980 there were 32,000 of them. Today we have more than 86,248 people, 79% of them women.

Over 4 hours a day are spent watching TV among seniors over age 65.

PG&E employees might ponder why these statistics and trends point to one conclusion: the 65 and older age group will grow in size and influence in the future. Have you arranged health care? Are you confident with your investments? In the event you are unsure of your options, you may need to craft a solid future strategy.

Articles you may find interesting:

Loading...

Sources:

  1. Soldofsky, Robert M. 'On Determining the Optimal Retirement Age.'  JSTOR , vol. 72, no. 4, July-Aug. 1986, pp. 17-21. JSTOR,  www.jstor.org/stable/40251322 .

  2. Soniak, Matt. 'Why is the Retirement Age 65?'  Mental Floss , 7 Jan. 2015,  www.mentalfloss.com/article/60958/why-retirement-age-65 .

  3. 'German Pension Entitlements & Retirement Age.'  Welcome Center Germany www.welcome-center-germany.com/german-pension-entitlements-and-retirement-age/ .

  4. Börsch-Supan, Axel, et al. 'They Will Definitely Need Us, When We Are 64: Old-Age Provision in Germany.'  Intereconomics , vol. 54, no. 3, May-June 2019, pp. 170-174.  Intereconomics www.intereconomics.eu/contents/year/2019/number/3/article/they-will-definitely-need-us-when-we-are-64-old-age-provision-in-germany.html .

  5. 'Germany Faces Challenges as Population Ages.'  The Local , 23 Sept. 2020,  www.thelocal.de/20200923/germany-faces-challenges-as-population-ages .

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
PG&E offers two types of pension plans: the Final Pay Pension for employees hired before 2013 and the Cash Balance Pension for those hired after 2012. The Cash Balance Pension Plan credits a percentage of the employee's salary annually to an account that grows with interest. Additionally, PG&E contributes to a 401(k) plan with matching contributions, enhancing the retirement savings of its employees.
Wildfire Mitigation and Safety: PG&E is implementing a comprehensive wildfire mitigation plan, which includes laying off about 2,500 employees to improve operational efficiency (Source: Wall Street Journal). Strategic Focus: The company is focusing on grid safety and reliability. Financial Performance: PG&E reported a 7% increase in net income for Q2 2023, reflecting the success of its safety initiatives (Source: PG&E).
PG&E offers RSUs that vest over time, providing shares upon vesting. Stock options are also available, allowing employees to purchase shares at a fixed price.
New call-to-action

Additional Articles

Check Out Articles for PG&E employees

Loading...

For more information you can reach the plan administrator for PG&E at p.o. box 5546 Concord, CA 94524; or by calling them at 925-349-2517.

https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/news-and-outreach/documents/pao/pphs/2022/fact-sheet--pge-ty-2023-grc-revised-on-april-5-2022.pdf - Page 5, https://docs.cpuc.ca.gov/PublishedDocs/SupDoc/A2106021/4046/403094527.pdf - Page 12, https://www.pge.com/documents/retirement-plan-2022.pdf - Page 15, https://www.pge.com/documents/retirement-plan-2023.pdf - Page 8, https://www.pge.com/documents/retirement-plan-2024.pdf - Page 22, https://www.pge.com/documents/401k-plan-2022.pdf - Page 28, https://www.pge.com/documents/401k-plan-2023.pdf - Page 20, https://www.pge.com/documents/401k-plan-2024.pdf - Page 14, https://www.pge.com/documents/rsu-plan-2022.pdf - Page 17, https://www.pge.com/documents/rsu-plan-2023.pdf - Page 23

*Please see disclaimer for more information

Relevant Articles

Check Out Articles for PG&E employees