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

The Five Biggest Stealth Costs in Retirement for Southwest Gas Holdings Employees

Healthcare Provider Update: Healthcare Provider for Southwest Gas Holdings Southwest Gas Holdings provides healthcare benefits through a variety of insurers, primarily utilizing Aetna for their healthcare plans. This partnership enables employees to access a broad network of healthcare services. Expected Healthcare Cost Increases in 2026 As we approach 2026, healthcare costs are anticipated to soar, significantly impacting those affiliated with Southwest Gas Holdings. This expected surge stems from factors such as the expiration of enhanced federal subsidies for Affordable Care Act (ACA) plans, which could lead to a staggering increase of over 75% in out-of-pocket premiums for many enrollees. Moreover, aggressive rate hikes from major insurers, combined with rising medical costs, suggest that employees and retirees may face a challenging financial landscape in the coming year. Proactive management of health benefits and planning will be crucial for individuals navigating these increasing costs. Click here to learn more

'Southwest Gas Holdings employees must remain vigilant about hidden costs in retirement, as unexpected expenses like health care, taxes, and inflation can have a real impact on their long-term financial well-being. Proactive planning and budgeting for these stealth expenses can provide much-needed peace of mind as they enter retirement.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Southwest Gas Holdings retirees often underestimate the impact of inflation and unexpected medical costs on their retirement savings. By planning for these stealth expenses and adjusting their budgets accordingly, they may avoid unnecessary financial strain and maintain a comfortable lifestyle throughout retirement.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

The five most common stealth expenses in retirement, including health care, taxes, emergencies, family-related expenses, and inflation.
The impact of inflation and unexpected costs on Southwest Gas Holdings retirees.
Strategies to reduce the burden of stealth expenses through proactive planning and saving.

Many Southwest Gas Holdings employees concentrate on budgeting and income management while making retirement plans. While this is crucial, planning for hidden or stealth costs—unexpected expenses that can occur and negatively impact finances—is often overlooked. Even with a well-thought-out budget, retirees may find themselves caught off guard by these expenses, leading to unnecessary stress.

Unexpected expenses are a significant factor in 43% of retirees feeling more financially worried than before retirement, according to a recent study by TheSeniorList.com. ¹ Many Southwest Gas Holdings retirees realize that they are unprepared for the hidden costs that emerge once they leave employment, despite saving substantial amounts for retirement. While $1.26 million is considered an ideal amount to retire comfortably, ² many Southwest Gas Holdings employees haven’t reached this target, making them vulnerable to unanticipated costs that could derail their financial plans.

“Southwest Gas Holdings retirees and pre-retirees recognize the imperative to plan for unforeseen financial events, but they often struggle to put aside sufficient funds to do so,” says Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement. The current high rate of inflation is making it more challenging for investments and savings to keep up with rising prices, exacerbating the issue. Notably, 20% of retirees and 35% of pre-retirees say they experienced a financial shock that caused them to lose more than 25% of their assets, according to the Retirement Risk Survey conducted by the Society of Actuaries (SOA) Research Institute. ³ This underscores the importance of addressing hidden expenses in retirement.

To help prevent financial strain, Southwest Gas Holdings retirees should prepare for and anticipate the five most common stealth expenses listed below.

Health Care Expenses

Southwest Gas Holdings retirees are often surprised by the full cost of health care, despite it being a known expense. Unexpected medical expenses, especially for serious or chronic conditions, can become a significant financial burden. 'Putting numbers around the potential cost of unexpected medical crisis is notoriously challenging, and even chronic health issues are hard to estimate, especially if they last longer than expected,' says Patrick Ray, a financial advisor at The Retirement Group, a division of Wealth Enhancement. The price of medical care might vary greatly. A hospital stay of two nights could cost about $20,000, but a longer stay or a serious illness could easily exceed $100,000. ⁴

Even for those with insurance, medical bills are a common source of hidden costs. Southwest Gas Holdings retirees may need to cover a significant portion of medical expenses due to escalating insurance premiums, co-pays, and deductibles. By confirming they have adequate insurance coverage, including supplemental insurance for unforeseen medical costs, retirees can manage these expenses more effectively. Home insurance can also provide additional financial support for unexpected costs, such as an injury on the property.

Taxes

Taxes do not disappear in retirement, despite what many retirees may assume. Many Southwest Gas Holdings retirees believe they won’t need to pay taxes once they stop working. However, this is rarely the case, especially for those with multiple income sources. 'Although many retirees no longer earn a salary, they still receive income from an array of sources, such as employer-sponsored plans, savings and investments, and Social Security,' says Kevin Won, a financial advisor with The Retirement Group.

Depending on its source, retirement income may be taxed differently. For example, distributions from retirement accounts like IRAs and 401ks are taxable, and Social Security benefits may be taxed if a retiree's income surpasses certain thresholds. Taxes on investment income can complicate retirement planning. Southwest Gas Holdings retirees can save on taxes by using strategic asset placement and planning.

Emergencies

Emergencies are an inevitable aspect of life, and their unpredictability makes them especially challenging to prepare for. These emergencies can include anything from car repairs and home maintenance to unanticipated legal or family medical expenses. Neva Bradley, a financial advisor at The Retirement Group, emphasizes the importance of putting money aside for these situations. On a fixed income, she explains, 'retirees who don't put funds aside for emergencies risk facing unexpected expenses that could reduce their monthly income, making it harder to cover necessary costs.'

Southwest Gas Holdings retirees can manage these unexpected costs by maintaining a separate emergency savings fund. It is important to set aside a percentage of funds specifically for emergencies, so retirees can cover expenses without having to dip into their primary retirement savings or return to work.

Family Emergencies

Financial emergencies involving family members can also be a significant hidden expense in retirement. Many retirees, including those at Southwest Gas Holdings, want to help their adult children or grandchildren during difficult times. Helping adult children in a crisis or contributing to grandchildren’s college tuition could cost up to $20,000 per year or more for tuition alone.

Major family events, such as the death of a spouse, can also create high expenses. For instance, typical funerals cost between $7,000 and $12,000, ⁵ and there may also be legal fees to settle the estate, which can range from $5,000 to $10,000 or more. ⁶ Financial advisor Kevin Won stresses the importance of planning for these expenses. “Retirees who want to help family members through tough times should think through how they plan to cover those costs,” he says.

Costs Associated with Inflation

Inflation is one of the most common and unpredictable expenses in retirement. Many Southwest Gas Holdings retirees aren’t prepared for their purchasing power to slowly decrease. Inflation can significantly erode the value of retirement funds, making it harder to maintain your desired lifestyle. 'Inflation isn't something you can control, but it is something you can plan for,' says Kevin Won. This begins by understanding how inflation could erode your purchasing power over time. For instance, investments of $50,000 annually today would notionally need to grow to $90,000 in 20 years to maintain the same purchasing power.

Inflation impacts every aspect of life, from housing and health care to food and transportation. Inflation and the cost of living were cited by 28% of retirees as the most unexpected aspect of their retirement planning, slightly surpassing the 27% who mentioned medical and health care costs, according to the SeniorList survey. Southwest Gas Holdings retirees living in older homes or regions susceptible to natural disasters may also face additional costs for repairs or insurance.

Three Strategies to Reduce Retirement Stealth Expenses

Fortunately, Southwest Gas Holdings retirees can take steps to prepare for and reduce the burden of these hidden costs.

Create a 'Stealth' Annual Budget

One practical approach is to create an annual budget specifically for stealth expenses. By planning in advance, Southwest Gas Holdings retirees can minimize the stress of dealing with unforeseen bills, which many mistakenly treat as emergencies. Neva Bradley advises, 'Budget for these expenses annually.' Regular retirement budgeting should include costs such as car updates or appliance replacements.

Delay Retirement

Delaying retirement by even a few months or years can help enhance a retiree's financial situation. Continuing to work allows retirees to save more, avoid early withdrawals from retirement accounts, and let investments grow. Neva Bradley recommends that Southwest Gas Holdings retirees 'push back retirement for as long as practical' to strengthen their financial position.

Put the Money Away Early

One of the most effective ways to prepare for unforeseen expenses is to start saving for retirement as early as possible. Paul Bergeron from The Retirement Group suggests using health savings accounts (HSAs) to save for future medical costs. 'Health care costs are on the rise and often exceed what retirees anticipate. An HSA can help,' he notes. Even without an HSA, Southwest Gas Holdings retirees should prioritize saving for medical expenses to cover co-pays, co-insurance, and uncovered health care costs that can quickly add up.

In Conclusion

Hidden costs, such as health care, taxes, emergencies, family-related expenses, and inflation, can significantly affect Southwest Gas Holdings retirees’ financial well-being. While these expenses are often unforeseen, retirees can take proactive steps to plan for them. By budgeting for unexpected costs annually, delaying retirement, and saving strategically, Southwest Gas Holdings retirees can alleviate the financial strain brought on by stealth expenses and craft a comfortable retirement.

The soaring expense of long-term care, often not fully covered by health insurance, is a major concern for retirees. Those who are currently 65 have almost a 70% chance of needing some type of long-term care services in the future. ⁷ Planning ahead for these costs, whether through insurance or savings, is crucial for safeguarding retirement income.

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Sources:

1. TheSeniorList. ' Surprise Retirement Costs: What Seniors Need to Know To Protect Their Savings ,' by Amie Clark. 8 Oct. 2024.

2. CNBC. ' The 'magic number' to retire comfortably fell to $1.26 million--but people are less confident they can reach it ,' by Jessica Dickler. 21 Apr. 2025.

3. Society of Actuaries. “ Retirement Risk Survey Finds Financial Shocks .” Society of Actuaries, 19 Dec. 2024.

4. International Citizens Insurance. ' How Must Does Healthcare Cost in the U.S.? ' 2025.

5. Trust & Will. ' Funeral Costs 101 .' 2025.

6. Trustate. ' Estate Expenses - Who Pays What? ' 2025.

7. Administration for Community Living. ' How Much Care Will You Need? ' 18 Feb. 2020.

Other Resources:

Kiplinger. “The Five Biggest Stealth Costs in Retirement.” Kiplinger, 26 May 2025.

How does the Southwest Carpenters Pension Plan accommodate changes in benefits for employees who have been affected by the COVID-19 pandemic, and what specific provisions have been implemented to ensure continuity of pension credit during such interruptions? Employees of the Southwest Carpenters Pension Plan are particularly encouraged to review how these provisions may impact their retirement plans and benefits, especially given the unprecedented circumstances of the pandemic.

The Southwest Carpenters Pension Plan accommodated changes due to COVID-19 by extending various deadlines for participants, such as the 12-month deadline to apply for pension credit for periods of disability, and other deadlines regarding claims and appeals. These extensions were applied from March 1, 2020, to a period of up to one year after the original deadline or 60 days after the end of the COVID-19 national emergency, ensuring continuity of pension credit during the pandemic interruptions(Southwest Carpenters Pe…).

What enhancements to pension benefit calculations have been introduced for the years following January 1, 2021, under the Southwest Carpenters Pension Plan, and how do these changes affect participants working more than 1,800 hours? This question emphasizes the implications of increased benefit accrual rates and the actual processes employees must follow to calculate their pensions effectively.

Enhancements to pension benefit calculations effective January 1, 2021, under the Southwest Carpenters Pension Plan include an increase in the monthly benefit accrual rate for participants working 1,800 hours or more. The rate increased from $100 to $200, and for those working more than 1,800 hours, a maximum benefit accrual rate of $244.44 was introduced(Southwest Carpenters Pe…).

In the context of the Southwest Carpenters Pension Plan, could you explain the eligibility criteria for receiving a Service Pension and how employees can accumulate the necessary Pension Credits more quickly? This consideration is vital for members who wish to understand the retirement options available to them and the strategies they might employ in their careers to maximize their benefits under the Southwest Carpenters Pension Plan.

Employees of the Southwest Carpenters Pension Plan are eligible for a Service Pension after earning 30 years of Pension Credit. Additional Service Pension Eligibility Credit was introduced, allowing employees working over 1,800 hours annually to accumulate credits more quickly, up to a maximum of 2,200 hours(Southwest Carpenters Pe…).

How do temporary disability benefits interact with the accumulation of Pension Credits within the Southwest Carpenters Pension Plan? Specifically, employees may have questions about how their working history and service time might be affected should they take leave for health-related reasons, highlighting the intricate balance between pay and benefits during challenging times.

Temporary disability benefits under the Southwest Carpenters Pension Plan allow participants to accumulate Pension Credits during non-working periods if they are on short-term disability or receiving workers' compensation. Pension Credits can be granted for up to 1,200 hours annually, depending on the nature of the disability and employment history(Southwest Carpenters Pe…).

What are the implications of the revised definitions under the Required Beginning Date as specified by the Southwest Carpenters Pension Plan, particularly in compliance with the SECURE Act (Setting Every Community Up for Retirement Enhancement Act)? Employees should understand how these legislative changes affect their retirement strategies, especially in light of penalties for failing to comply with mandatory commencement dates.

The Required Beginning Date for the Southwest Carpenters Pension Plan was revised to comply with the SECURE Act. Participants born on or after July 1, 1949, must begin receiving benefits by April 1 of the calendar year following the year they turn 72. Failure to comply with this could result in a 50% excise tax(Southwest Carpenters Pe…).

How can employees of the Southwest Carpenters Pension Plan navigate the process for applying for pension credit during periods of Temporary Disability, and what specific documentation is required? This inquiry encourages a deeper understanding of protocol surrounding disability applications and the associated benefits that participants are entitled to under the Plan.

Employees applying for pension credit during periods of Temporary Disability must submit a written application within one year of the onset of the disability, and provide documentation such as state-approved short-term disability certification or workers' compensation benefits(Southwest Carpenters Pe…).

What are the implications of the retroactive increases to the Southwest Carpenters Pension Plan benefits aimed at participants who accrued credit during the years 2011 to 2020, and how can affected employees determine their eligibility for said increases? Employees often seek clarification on how historical contributions can manifest in current benefits.

Retroactive increases to the Southwest Carpenters Pension Plan benefits for the years 2011 to 2020 apply to participants who worked at least 1,000 hours in 2020 or under specific collective bargaining agreements. A 50% increase in benefit accrual rates was applied to these years, and eligible employees can determine their eligibility based on their hours worked(Southwest Carpenters Pe…).

What role does the Southwest Carpenters Administrative Office play in assisting employees who have questions regarding modifiability in their pension plans, and what are the best methods for contacting them for assistance? This question highlights the importance of communication within the organization concerning employee inquiries and issue resolution.

The Southwest Carpenters Administrative Office assists employees with questions regarding modifications to their pension plans. Participants can contact them at (213) 386-8590 or (800) 293-1370 for personalized assistance(Southwest Carpenters Pe…).

Can you detail the factors influencing the Benefit Accrual Rate for participants of the Southwest Carpenters Pension Plan for the calendar years after 2021, and how might employees calculate their expected pension benefits? Participants will want to understand the nuances of how their benefits are computed to make informed decisions regarding their retirement planning.

The Benefit Accrual Rate for participants of the Southwest Carpenters Pension Plan after 2021 increased to $200 for 1,800 hours worked, with higher accrual rates for additional hours. Employees can calculate their benefits by multiplying their benefit accrual rate by the applicable benefit factor(Southwest Carpenters Pe…).

In the event of legal actions regarding benefits under ERISA against the Southwest Carpenters Pension Plan, what venue restrictions apply, and what does this mean for participants seeking resolution in disputes? Employees need to be informed of the legal frameworks governing their benefits and understand their rights and the procedures that affect their claims within the Southwest Carpenters Pension Plan.

Legal actions regarding benefits under ERISA against the Southwest Carpenters Pension Plan must be filed in Federal District Court in Los Angeles County, California. This venue restriction defines the jurisdiction where participants must file claims(Southwest Carpenters Pe…).