Understanding Risk Tolerance: A Guide for AECOM Employees Navigating Retirement Changes

Healthcare Provider Update: Healthcare Provider for AECOM AECOM employees are primarily covered through its benefit partnership with UnitedHealthcare. This relationship provides comprehensive health insurance options to the workforce, including various plan structures designed to meet diverse healthcare needs. Potential Healthcare Cost Increases in 2026 In 2026, AECOM employees may face substantial healthcare cost increases as many large companies, including AECOM, prepare to adjust their benefit structures in response to rising medical costs. The Affordable Care Act marketplace is projected to see premium hikes exceeding 60% in some states, primarily reflecting the loss of enhanced federal subsidies. This situation has the potential to significantly raise out-of-pocket expenses for employees as employers may shift more costs onto their workforce; over half are likely to increase deductibles or out-of-pocket limits. Employees need to strategically navigate their options and familiarize themselves with upcoming benefit changes to mitigate the impact of these financial pressures. Click here to learn more

The world of investing is very subjective--the investment plan that’s right for you depends largely upon the level of comfort that you have when it comes to risk. We'd like our clients from AECOM to remember that you can’t completely avoid risk when it comes to investing, but it's possible for you to manage it.

There are two aspects of risk tolerance for AECOM employees to consider: (1) the capacity of your investment plan itself to absorb losses, and (2) how comfortable you are personally with risk. The first aspect can be quantified--the more flexibility your investment plan has when it comes to potential loss, the more risk your plan can tolerate. For example, as we’ve discussed, a long investment time horizon may allow you to take on more risk than a short time horizon.

'You can’t completely avoid risk when it comes to investing, but it is possible for you to manage it..'

The second aspect, how comfortable you are personally with risk, is more of an emotional measure, and depends on many factors, including your objectives, life stage, personality, and investment experience. Some investors are comfortable with a high degree of risk, while others can tolerate only minimal risk. Individual risk tolerance is an important factor for AECOM employees in deciding which individual investments are appropriate for them, as well as how their investment dollars should be allocated among different investment classes.

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Investors are typically grouped into three categories for purposes of discussing risk tolerance: aggressive (those who have a high degree of risk tolerance); moderate (those willing to accept some degree of risk), and conservative (those who are risk averse).