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Target Employees Confront the Hidden Cost of Family Support on Retirement Security

'Target employees should recognize that sustained family support can quietly drain their long-term retirement income, making it important to set clear financial boundaries and prioritize retirement contributions as part of their savings plans.' — Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Target employees often underestimate how ongoing family assistance can impact their retirement outlook, which is why they should develop a disciplined plan that balances generosity with the need to maintain long-term financial resilience.' — Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How family financial support can quietly erode retirement savings.
The emotional and generational pressures that may shape financial decisions.
Practical strategies to balance generosity with long-term stability.

Retirement planning for Target employees can be subtly undermined by family obligations, calling for a deeper level of awareness and preparation.

By continuing to support family members—often at the expense of their own future plans—individuals may put long-term retirement strength at risk. The drive to help loved ones, whether aging parents, adult children, or grandchildren, is rarely built into retirement projections. Yet, this growing trend represents a frequently underestimated threat to a lasting retirement income for Target workers and others.

The Unnoticed Depletion of Retirement Funds

According to the 2025 Protected Retirement Income and Planning (PRIP) Study by the Alliance for Lifetime Income, 17% of Americans support adult children over age 26, 10% assist grandchildren, 7% help parents or in-laws, and 9% aid other relatives. ¹ More than half admit these transfers negatively affect their retirement funds. ¹

This pattern reflects a national tendency to place emotional or moral duty above personal portfolio preservation. Only 15% of respondents said they would cut back on family support to prolong their retirement funds, while 54% would return to work and 58% would accept a more modest lifestyle. ¹ Brent Wolf, CFP®, reports having seen retirees delay medical care or home repairs to help their families—acts of generosity that can become financially unsustainable, even among Target employees accustomed to disciplined planning.

The Blind Spot in Generational Perspectives

Generation X, often called the “sandwich generation”, faces unique pressures, balancing aging parents’ demands alongside supporting adult children. Without defined benefit pensions, many depend solely on personal savings, making diverted funds especially damaging. Target employees under similar pressures may benefit from guidance that realistically incorporates these family demands into retirement roadmaps.

Setting Up Long-Term Limits

Supporting family isn’t automatically harmful—but it must come with boundaries. Differentiating between essential needs (e.g., medical emergencies) and nonessentials (e.g., discretionary travel) can help retirees allocate resources more wisely. Establishing a “family assistance budget” lets one give consistently without stretching one’s retirement plan too thin. For Target workers familiar with structured planning, folding this into their broader retirement approach can help maintain both generosity and durability.

Put Retirement Planning Before Generosity

“Pay yourself first” remains a guiding principle. As a general rule of thumb, regular contributions to retirement vehicles—401(k)s, IRAs, Roth accounts—should take priority over discretionary family financial help. Advisors may also suggest tax-efficient giving vehicles—such as 529 plans or direct payments of medical expenses—to help ease the burden on your long-term capital. With less access to defined benefit plans today than in the past, Target workers could benefit from structured income streams (such as annuities, systematic withdrawals, and Social Security sequencing) to prevent family support from draining essential retirement income.

Emotional Finance Requires Clarity and Empathy

Retirement planning isn’t purely quantitative—it involves emotion. Advisors who consider the human dimensions of money decisions can help you develop more robust approaches. As Brent Wolf notes, the aim isn’t to discourage you from helping family but to map out ways for it to happen without jeopardizing your own future. Open dialogue, periodic family support reviews, and scenario “stress-tests” can help Target retirees maintain peace of mind while preserving sustainable income.

Providing for family in retirement is like trying to water multiple gardens with one hose—the more you distribute, the less each patch receives. Without careful parameters, retirement funds may run dry before personal needs are met. Target retirees, like everyone else, must reconcile generosity with prudence so that their financial gardens continue to flourish over time.

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Sources:

1. Alliance for Lifetime Income by LIMRA. ' 2025 Protected Retirement Income and Planning (PRIP) Study .' 24 Sept. 2025.

Other Resources:

1. Smith, Matthew, and Christin Kuretich. Informal Caregiving: Measuring the Cost and Reducing the Burden . Society of Actuaries Research Institute, Apr. 2023. pp. 4-7, 27-31.

2. Board of Governors of the Federal Reserve. Economic Well-Being of U.S. Households in 2024: Results from the Survey of Household Economics and Decisionmaking (SHED) . U.S. Federal Reserve, 28 May 2025. pp. 4-5, 8-11.

What are the key benefits provided by Target Corporation's Personal Pension Account and Traditional Plan for employees approaching retirement, and how do these plans ensure financial security during retirement years? Understanding the synergy between these two plans is essential for retirees, as they work together alongside Social Security and personal savings to replace a portion of an employee's paycheck after retirement.

Key Benefits of the Personal Pension Account and Traditional Plan: Target Corporation's pension plan includes two components: the Personal Pension Account and the Traditional Plan. These plans work in tandem to replace a portion of an employee's paycheck during retirement. The Personal Pension Account provides pay credits and interest that accumulate over time, while the Traditional Plan uses a final average pay formula. Together with Social Security and personal savings, these plans help ensure financial security in retirement(Target Corporation_Dece…).

How can employees elect different payment options, such as the Single Life Annuity or the Joint and Survivor Annuities, within Target Corporation's pension plans? It is crucial for employees to grasp not only the financial implications of these choices but also the necessary spousal consent required when designating a joint annuitant, particularly if the chosen joint annuitant is not the employee's spouse.

Payment Options and Spousal Consent: Employees can elect different payment options, including the Single Life Annuity, which provides the highest monthly benefit and ceases at the retiree’s death, or the Joint and Survivor Annuity, which continues payments to a surviving spouse. To elect a non-spouse as a joint annuitant, spousal consent is required, and this must be notarized to ensure compliance with plan rules(Target Corporation_Dece…).

In what circumstances might benefits not be paid under the Traditional Plan, and what steps can employees take to ensure they remain eligible for their pension benefits upon termination of employment? Target Corporation's policy outlines several scenarios where benefits could be denied, making it necessary for employees to be proactive in understanding their rights and responsibilities concerning plan participation.

Circumstances for Denial of Benefits under the Traditional Plan: Benefits under the Traditional Plan may not be paid if an employee leaves before becoming vested (less than three years of service). Employees should ensure they meet the vesting requirements and maintain eligibility by avoiding termination before they reach the minimum service period(Target Corporation_Dece…).

What procedures should employees follow to report changes in marital status, address, or beneficiaries to ensure compliance with the requirements of Target Corporation's pension plan? Employees must understand the importance of timely reporting these changes to avoid potential issues with their retirement benefits and ensure that their pension plan information remains up-to-date.

Reporting Changes in Marital Status or Beneficiaries: Employees must promptly report changes in marital status, address, or beneficiaries to Target's Benefits Center to ensure their pension records remain up-to-date. Failing to do so can lead to delays or issues in processing pension benefits(Target Corporation_Dece…).

How does Target Corporation determine the final average pay used to calculate retirement benefits under its pension plans, and what factors may affect this calculation? Employees nearing retirement should be fully informed about how their compensation is considered in determining their pension benefits, including aspects such as bonuses and overtime that may influence their final average pay calculation.

Final Average Pay Calculation: Target Corporation calculates final average pay based on the five highest years of earnings out of the last 10 years of service. This includes regular pay, overtime, bonuses, and commissions but excludes items like workers' compensation or long-term disability payments(Target Corporation_Dece…).

How can employees begin the process of rolling over their Target 401(k) accounts into the Pension Plan, and what advantages does this Pension Purchase Program offer? Understanding this rollover option is vital for maximizing retirement benefits, as it can provide employees with a stable income stream while avoiding unnecessary fees typically associated with purchasing annuities outside the plan.

Rolling Over 401(k) into the Pension Plan: Employees can roll over their 401(k) accounts into the Pension Plan using the Pension Purchase Program. This option offers several advantages, including avoiding fees associated with purchasing annuities outside the plan and receiving a stable income stream during retirement(Target Corporation_Dece…).

What are the implications of a participant's age and joint annuitant's age on the payment amounts under the various Joint and Survivor Annuity options at Target Corporation? Employees should be aware of how age differences can impact their pension payouts, as the specific percentages payable under these options may vary based on the ages of both the participant and their designated joint annuitant.

Effect of Participant and Joint Annuitant’s Age on Payments: The Joint and Survivor Annuity options are influenced by the ages of both the participant and the joint annuitant. The younger the joint annuitant, the lower the monthly payout due to actuarial adjustments. Employees should consider these factors when selecting an annuity option(Target Corporation_Dece…).

How are retirement benefits managed during potential plan terminations or amendments at Target Corporation, and what protections are in place for employees in these scenarios? Employees should be well-informed regarding their rights in the event of changes to the pension plan, including how benefits would be distributed and under what circumstances they may remain fully vested.

Plan Terminations or Amendments: In case of plan terminations or amendments, vested benefits are protected, and employees will receive their earned pension. If the plan is amended or terminated, Target ensures that vested benefits are distributed according to the plan's terms(Target Corporation_Dece…).

For employees retiring or leaving Target Corporation, what options are available with respect to unused vacation time and how might this be factored into pension calculations? Understanding how accrued time off translates into benefits could have a significant impact on an employee's financial positioning upon retirement.

Unused Vacation Time and Pension Calculations: Unused vacation time does not directly affect pension benefits but can be included in eligible earnings calculations that determine final average pay. Employees nearing retirement should consult with Target’s Benefits Center to understand how unused time may impact their overall benefits(Target Corporation_Dece…).

How can employees contact Target Corporation for assistance with their retirement benefits to address any questions or concerns they may have about their pension plans? Accessing the right resources and support is essential for employees to navigate their retirement benefits effectively. They can reach out to the Target Benefits Center at 800-828-5850 for more specific inquiries related to their personal circumstances. These questions aim to enhance employees' understanding of their retirement benefits, ensuring they are well-prepared for their transition into retirement.

Contacting Target for Pension Assistance: Employees can contact the Target Benefits Center at 800-828-5850 for assistance with their retirement and pension plans. This center provides support with any questions related to pension options, payments, and administrative requirements(Target Corporation_Dece…).

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For more information you can reach the plan administrator for Target at 10 South Dearborn Street 48th Floor Chicago, IL 60603; or by calling them at 1-800-440-0680.