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PepsiCo Employees Confront the Fear of Running Out of Money in Retirement

Healthcare Provider Update: Healthcare Provider for PepsiCo PepsiCo's primary healthcare provider for employee health benefits is the UnitedHealthcare network, which offers a range of healthcare services and insurance plans for PepsiCo employees. Potential Healthcare Cost Increases in 2026 In 2026, PepsiCo and its employees may face notable increases in healthcare costs due to a combination of factors influencing the Affordable Care Act (ACA) marketplace. Insurance premiums are projected to rise significantly, with some states seeing hikes upwards of 60%, primarily driven by the expiration of enhanced federal premium subsidies. Additionally, the rising costs of medical services and pharmaceuticals are contributing to overall healthcare inflation, with insurers reporting anticipated increases in claims expenses. This perfect storm could potentially lead to out-of-pocket costs skyrocketing for consumers, creating substantial financial pressures. Click here to learn more

'To allay long-term financial concerns, PepsiCo employees may benefit from a comprehensive retirement strategy that addresses inflation, health care costs, and tax planning.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Proactive retirement planning—especially around inflation, health care, and shifting tax policies—can help PepsiCo employees gain clarity and reduce uncertainty in the years leading up to retirement.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

Key causes of retirement anxiety, including inflation, health care, and taxes.
Generational differences in money concerns and readiness.
The value of broad retirement planning approaches.

Retirement Anxiety is On The Rise

Employees across industries, including those at PepsiCo, have long worried about how they will fund retirement. These concerns have grown considerably in today’s economy. Nearly two out of three Americans (64%) said they worry more about outliving their resources than they do about dying, according to the Allianz Center for the Future of Retirement’s 2025 Annual Retirement Study. ¹

Main Causes of Retirement-Related Worry

The Allianz study lists several key triggers of these fears. Regarding long-term planning, 54% of respondents said inflation was their top worry. Increases in health care costs, housing, and food prices are still undermining people’s purchasing power.

Concerns around Social Security’s future and tax burdens are also high. 43% said they feared Social Security might not offer adequate support. And another 43% named high taxes as a major issue.

Generational Gaps in Money Stress

Gen X—often balancing care for both kids and aging parents—report the highest worry: 70% versus 66% of millennials and 61% of boomers. Among corporate workers, including those at PepsiCo, this dynamic underlines how family obligations can magnify retirement concerns.

The Gap Between Worry and Action

The survey shows a gap between concern and conversation: just 23% of respondents have talked about outliving their assets with a retirement specialist, down from 28% in 2024. ² That said, Americans are considering several strategies to allay these fears, ranking the following approaches as most helpful:

41% said cutting current spending to funnel more toward retirement 
44% said increasing retirement contributions 
39% said postponing retirement
While increasing contributions to retirement accounts could help address these concerns, barriers remain: daily necessities (63%), credit card debt (40%), mortgage or rent (35%) were top reasons people weren’t contributing more.

The Emotional Side of Retirement Anxiety

Retirement fears influence not just finances, but lifestyle, career choices, and family planning. Worries about independence, dignity, and quality of life often accompany fear of running short on funds.

Health care need are often underestimated too, complicating the equation. Medicare covers many basic services, but long‑term care, home assistance, and uncovered treatments can add large bills—adding uncertainty even for high‑income employees.

Broader Retirement Planning Matters

The Allianz findings emphasize planning well beyond just saving. With people living 25 to 30 years post‑work, a solid planning mindset is critical. As Kelly LaVigne, VP at Allianz Life, noted, “Americans areliving longer… your money needs to go farther. A good plan considers 25 to 30 years of retirement, not just the first ten.” ²

Key components often include:

Income strategies: setting up regular monthly disbursements from assets
Tax planning: reducing tax burdens on withdrawals
Health care planning: factoring in Medicare gaps and long‑term care
Inflation alignment: keeping income responsive to cost increases

Combined, these strategies can help build resilience, confidence, and preparedness even in uncertain times.

In Conclusion

The 2025 Allianz Retirement Study makes it clear: a majority of Americans—and PepsiCo employees among them—see the threat of running out of money as more frightening than death. Rising inflation, health care spending, and uncertainty around Social Security are central drivers. Fewer are taking direct action through planning conversations or boosted contributions.

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Yet there is opportunity. The IRS now permits catch‑up 401(k) contributions of up to $11,250 for those aged 60–63 in 2025—above the standard limit. For many, this is a practical way to fortify resources in those final working years.

A Final Thought

Think of retirement like a long sea voyage. Death may be the storm ahead, but empty savings are the leak that can sink the ship first. According to the Allianz study, 64% of Americans fear that leak more than the storm. For PepsiCo employees, the goal is to build a well-structured plan—with consistent income, planning for health costs, and tax awareness—that can keep the vessel afloat for the long haul.

Sources:

1. Allianz Life Insurance Company of North America, ' How Americans feel about retirement in 2025 ,' by the Allianz Center for the Future of Retirement ^TM , June 2025.

2. businesswire, ' Americans Are More Worried About Running Out of Money Than Death ,' April 22, 2025.

What are the key steps an employee needs to take to prepare for retirement from PepsiCo, and how do these steps ensure that they maximize their benefits and entitlements?

Preparing for Retirement: Employees preparing for retirement from PepsiCo need to understand their retirement benefits, estimate their financial needs, and officially inform PepsiCo of their decision to retire. These steps are vital to ensure they maximize their benefits, including pensions, 401(k) plans, and retiree healthcare. The PepsiCo Savings and Retirement Center at Fidelity helps guide employees through this process, ensuring they make well-informed decisions(PepsiCo_October 2022_Ge…).

In what ways can PepsiCo employees navigate the complexities of their pension options, and what considerations should they have in mind when deciding between a lump sum and annuity?

Navigating Pension Options: PepsiCo employees can choose between a lump sum or an annuity for their pension benefits. When deciding, they should consider personal circumstances, such as life expectancy and financial needs. Employees can use the NetBenefits platform to estimate pension values at different retirement dates and consult financial counselors through Healthy Money for personalized advice(PepsiCo_October 2022_Ge…).

How does the PepsiCo Retiree Health Care Program function after retirement, and what criteria must be met for an employee to effectively enroll and maintain this coverage?

Retiree Health Care Program: PepsiCo offers a Retiree Health Care Program available until employees reach age 65, after which coverage transitions to the Via Benefits marketplace. Employees must actively enroll within 31 days of retirement to maintain coverage, or defer enrollment if preferred. The Retiree Health Care Contribution Estimator helps estimate future costs(PepsiCo_October 2022_Ge…)(PepsiCo_October 2022_Ge…).

How do the Automatic Retirement Contributions (ARC) at PepsiCo enhance an employee's retirement savings strategy, and what options do employees have to manage their ARC investments?

Automatic Retirement Contributions (ARC): Employees who receive ARC can manage their investments through NetBenefits. These contributions are automatically added to their retirement savings, enhancing long-term financial security. Employees can review and adjust their investment options to align with their retirement strategy(PepsiCo_October 2022_Ge…).

For employees aging 50 and over, what catch-up contribution options does PepsiCo provide to help with their 401(k) savings, and how can they take advantage of these benefits in their retirement planning?

Catch-Up Contributions: PepsiCo employees aged 50 and above can contribute additional amounts to their 401(k) plans under the catch-up contribution option. This benefit allows employees to boost their retirement savings, helping them prepare more effectively for retirement(PepsiCo_October 2022_Ge…).

What resources are available through PepsiCo for employees looking to calculate their retirement expenses, and how do these tools help in setting realistic financial goals for retirement?

Retirement Expense Calculators: PepsiCo provides tools like the Fidelity Planning & Guidance Center, which helps employees estimate retirement expenses. This tool includes health care costs, mortgage payments, and other potential retirement expenses, enabling employees to set realistic financial goals(PepsiCo_October 2022_Ge…).

How should employees at PepsiCo approach Social Security benefits when planning for retirement, and what role does the company play in facilitating their understanding of these benefits?

Social Security Benefits: Employees approaching retirement should consider when to start Social Security benefits. PepsiCo provides guidance through Healthy Money, helping employees understand how Social Security fits into their overall retirement strategy(PepsiCo_October 2022_Ge…).

What impact does health care coverage have on retired employees' finances, and how can PepsiCo retirees effectively use the Retiree Health Care Contribution Estimator to prepare for future health costs?

Retiree Health Care Contribution Estimator: Health care can significantly impact a retiree's budget. The Retiree Health Care Contribution Estimator is a tool PepsiCo retirees can use to prepare for future health costs. It helps employees estimate their contributions and explore different plan options to manage their post-retirement health care expenses(PepsiCo_October 2022_Ge…).

How can employees get in touch with the appropriate resources to learn more about PepsiCoâ€™s retirement benefits, and what specific contact information should they keep handy during this process?

Contact Information: To learn more about PepsiCo's retirement benefits, employees should contact the PepsiCo Savings and Retirement Center at Fidelity at 1-800-632-2014. Additionally, they can access resources on NetBenefits or consult Healthy Money counselors for personalized financial guidance(PepsiCo_October 2022_Ge…).

What are the implications of interest rate fluctuations on pension benefit calculations at PepsiCo, and how should employees factor these rates into their retirement planning decisions? These questions encourage a comprehensive understanding of the various aspects of retirement planning specific to PepsiCo, as well as consideration for personal financial management.

Interest Rate Fluctuations and Pension Calculations: PepsiCo employees considering a lump sum pension payout should be aware that lump sum values are inversely related to interest rates. A higher interest rate results in a lower lump sum payout, so employees should monitor interest rate trends when planning their pension distribution(PepsiCo_October 2022_Ge…)(PepsiCo_October 2022_Ge…).

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

PepsiCo offers both defined benefit and defined contribution pension plans. The defined benefit plan provides a stable retirement income based on years of service and final average pay. The defined contribution plan includes a 401(k) option with company matching contributions, allowing employees to save for retirement through various investment options. PepsiCo also offers a Profit Sharing Plan and a Stock Bonus Plan, providing additional retirement savings opportunities.

Restructuring and Layoffs: PepsiCo is undergoing a restructuring process that includes laying off approximately 2,000 employees globally (Source: Reuters). Operational Efficiency: The company aims to save $1 billion annually through these measures. Financial Performance: PepsiCo reported a 5% increase in net revenue for Q3 2023, driven by strong demand for its beverages and snacks (Source: PepsiCo).

PepsiCo grants RSUs that vest over time, providing shares upon meeting vesting conditions. Stock options are also available, allowing employees to purchase shares at a fixed price.

PepsiCo has implemented substantial enhancements to its employee healthcare benefits, adapting to the current economic, investment, tax, and political environment. In 2022, the company introduced a robust employee well-being program based on three pillars: "Be Well," "Find Balance," and "Get Involved." The "Be Well" pillar includes fitness programs, nutrition education, and access to on-site fitness centers and virtual fitness classes. The "Find Balance" pillar focuses on mental and emotional health, providing access to virtual mental health services and a stress management app. The "Get Involved" pillar promotes community involvement and social connections, essential for holistic well-being. These initiatives aim to support employees' physical, financial, and emotional health, ensuring they can bring their best selves to work. In 2023, PepsiCo continued to expand its healthcare offerings, emphasizing mental health support and financial well-being. The company launched the "Healthy Money" program, which provides personalized financial education and resources to help employees manage finances and prepare for retirement. Additionally, PepsiCo enhanced its environmental, health, and safety (EHS) culture with the "Courage to Care" initiative, which includes comprehensive health and safety policies and procedures. These efforts reflect PepsiCo's commitment to creating a supportive and engaging work environment, which is critical for attracting and retaining top talent in a dynamic economic landscape.

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For more information you can reach the plan administrator for PepsiCo at 700 anderson rd Purchase, NY 10577; or by calling them at 914-253-2000.

https://www.pepsico.com/documents/pension-plan-2022.pdf - Page 5 https://www.pepsico.com/documents/pension-plan-2023.pdf - Page 12 https://www.pepsico.com/documents/pension-plan-2024.pdf - Page 15 https://www.pepsico.com/documents/401k-plan-2022.pdf - Page 8 https://www.pepsico.com/documents/401k-plan-2023.pdf - Page 22 https://www.pepsico.com/documents/401k-plan-2024.pdf - Page 28 https://www.pepsico.com/documents/rsu-plan-2022.pdf - Page 20 https://www.pepsico.com/documents/rsu-plan-2023.pdf - Page 14 https://www.pepsico.com/documents/rsu-plan-2024.pdf - Page 17 https://www.pepsico.com/documents/healthcare-plan-2022.pdf - Page 23