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

4 Retirement Withdrawal Strategies for Genuine Parts Employees to Help Make Your Money Last

Healthcare Provider Update: Healthcare Provider for Genuine Parts: Genuine Parts Company, primarily known for its automotive replacement parts, benefits from its association with several healthcare providers, but its specific health insurance options are not publicly detailed. Generally, employees are likely covered under major national providers such as UnitedHealthcare, Anthem, or Aetna, which offer group health plans as part of their employee benefits. Potential Healthcare Cost Increases in 2026: Healthcare consumers can anticipate significant premium hikes in 2026, driven by the looming expiration of enhanced subsidies under the Affordable Care Act (ACA). Reports indicate that many states could see premiums increase by as much as 66%, with average national hikes exceeding 20%. These increases stem from soaring medical costs and projected double-digit rate adjustments proposed by major insurers, putting additional financial strain on millions of Americans reliant on marketplace plans. If not addressed, this combination of factors could push some consumers' out-of-pocket healthcare expenses up by 75% or more, effectively pricing many individuals out of adequate coverage. Click here to learn more

'Genuine Parts employees must carefully consider their retirement withdrawal strategies to maintain a sustainable income, as decisions on the timing and method of withdrawals can impact their financial health in retirement.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'By structuring the right withdrawal strategy, Genuine Parts employees can better navigate the complexities of retirement, helping their hard-earned savings last throughout their retirement years while potentially managing the risks associated with market volatility and unforeseen expenses.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

Four retirement withdrawal strategies to help your savings last.
The impact of tax considerations, required minimum distributions (RMDs), and Social Security benefits on your retirement income.
The importance of planning for health care costs in retirement.

Retirement is the culmination of years of dedication, hard work, and saving. As a Genuine Parts employee, you’ve likely worked diligently to build your retirement savings. However, once you’ve accumulated your nest egg, the challenge becomes converting that sum into a sustainable income to cover what could be decades of retirement. A major concern for many retirees, including those in the oil and gas industry, is outliving their savings. It’s critical to understand how to manage your retirement funds wisely to help make them last.

Having a healthy retirement fund is essential, but it’s equally important to know how to manage that fund effectively. Your retirement well-being depends on the decisions you make about withdrawing funds from your 401k, IRA, or other accounts. If you withdraw too much too quickly, you risk depleting your savings too soon, leaving yourself financially vulnerable. Conversely, if you withdraw too little, you may not be able to live comfortably. Therefore, choosing the right withdrawal strategy is key to optimizing your savings.

Below are four strategies that Genuine Parts retirees can consider to help their savings last:

1. The 4% Rule: An Age-Old Method

One of the most widely recognized retirement withdrawal methods is the 4% rule. According to this approach, retirees withdraw 4% of their original retirement portfolio balance in the first year of retirement. Each subsequent year, the amount withdrawn increases to keep pace with inflation. For example, from a $500,000 portfolio, the first year’s withdrawal would be $20,000 (4% of $500,000). The following year, if inflation is 3%, the withdrawal would rise to $20,600. The 4% rule aims to strike a balance between making withdrawals and allowing the funds to grow over time.

That said, some financial professionals have raised concerns about whether the 4% rule is still the best strategy, particularly in light of market volatility. In tough market conditions, the 4% rule might accelerate the depletion of your assets. Some advisors recommend reducing the withdrawal rate to 2.4% in such cases to help safeguard long-term funds.

2. The Fixed-Dollar Approach: Consistency and Confidence

The fixed-dollar withdrawal method involves setting a specific amount to withdraw each year during retirement. This amount is periodically reassessed based on financial needs and investment performance. The primary benefit of this approach is stability, as you know exactly how much you will receive every year. However, one downside is that it doesn’t account for inflation. Over time, as living expenses increase, the purchasing power of your fixed withdrawal will decrease.

Furthermore, similar to the 4% rule, the fixed-dollar approach can be risky during market downturns. If your investments don’t perform as expected, you may end up withdrawing more than your portfolio can sustain. Therefore, it's important to regularly reassess your plan, particularly during periods of economic uncertainty.

3. The Strategy for Total Return: Emphasis on Growth Assets

The total return strategy focuses on keeping your portfolio predominantly invested in growth assets, such as stocks. You would only withdraw enough to meet your immediate living expenses while allowing the rest of the portfolio to grow. The goal of this approach is to balance long-term growth potential with withdrawal needs, letting your assets grow as much as possible while still providing the income you need.

This strategy may appeal to retirees who have a significant financial cushion and a higher risk tolerance. However, it does carry the risk of having to sell investments at a loss during a market downturn, which could affect long-term growth. It’s best suited for those who are comfortable with volatility and who have a deep understanding of market performance.

4. The Bucket Strategy: A Layered Approach to Risk and Reward

The bucket strategy divides your retirement assets into multiple 'buckets' based on when the funds will be needed. The first bucket holds enough cash for immediate expenses, typically within the next 6-12 months. This money is invested in low-risk, liquid assets like money market funds or high-yield savings accounts. The second bucket is for medium-term needs, typically one to three years, and might include bonds or certificates of deposit (CDs). The third bucket holds long-term growth assets, like stocks, mutual funds, or exchange-traded funds (ETFs), and is meant to be used in five+ years.

This strategy aims to provide both short-term stability and long-term growth by investing in a mix of lower-risk and higher-risk assets. The short-term buckets are optimally insulated from market volatility, while the long-term buckets can ride out market fluctuations for potential growth. While this approach requires careful planning and regular rebalancing, it can offer peace of mind for retirees, allowing them to manage short-term expenses while still benefiting from the growth of their investments over time.

Other Elements That Impact How Long Your Retirement Funds Last

While choosing the right withdrawal strategy is essential, several other factors can impact the longevity of your retirement funds. For Genuine Parts employees, it's crucial to consider the following:

Tax Considerations:
Understanding the tax implications of your withdrawals is vital. Traditional retirement accounts, such as 401ks and IRAs, defer taxes on contributions and investment gains until you start taking distributions. In contrast, Roth accounts offer tax-free distributions. Planning your withdrawals to take advantage of lower tax brackets in retirement can be a smart strategy. For example, you might withdraw from tax-deferred accounts first, allowing Roth accounts to grow tax-free.
Required Minimum Distributions (RMDs):
The IRS requires that you begin taking minimum distributions from your traditional retirement accounts when you turn 73. Failing to take these distributions can lead to significant penalties. Since Roth IRAs are not subject to RMDs during your lifetime, delaying withdrawals from these accounts can be advantageous.
Social Security Benefits:
For many retirees, Social Security serves as a key source of income. The decision of when to start receiving benefits is a critical part of your retirement strategy. Starting early at age 62 results in lower monthly payments, but waiting until your full retirement age or even 70 can increase your benefits by as much as 8% per year.
Health Care Costs:
Health care costs are an often-overlooked aspect of retirement planning. According to a 2023 study by Fidelity, a 65-year-old couple retiring in 2023 can expect to spend an estimated $315,000 on health care costs over the course of their retirement. ¹ Planning for these expenses and adjusting your withdrawal strategy accordingly is essential to helping your savings last.

Bottom Line

Choosing the right withdrawal strategy is a critical step in making your retirement savings last. Whether you opt for the 4% rule, the fixed-dollar method, the total return strategy, or the bucket approach, each strategy offers different benefits and risks. By also considering tax implications, RMDs, Social Security, and health care costs, you can better prepare for a comfortable retirement.

For Genuine Parts employees, planning ahead and using the right strategy can help you enjoy a stable, financially independent retirement. By understanding how your withdrawal strategy interacts with other elements of retirement planning, you can position your nest egg to last for the long haul.

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Sources:

1. Fidelity. ' Fidelity Releases 2023 Health Care Cost Estimate .' 21 June 2023.

2. Colucci, Julie. 'Retirement Withdrawal Strategies To Extend Your Savings.' Bankrate , May 2025, pp. 1–3.

3. Reichenstein, William. 'A Roth 401(k) Is a Tax Break Hiding in Plain Sight.' Barron's , May 2025, pp. 2–4.

4. London, Hali Browne. 'Diversify or Risk Running Dry: 12 Additional Income Streams For Your Retirement.' Investopedia , May 2025, pp. 5–7.

5. Bengen, Bill. 'The Guy Behind Retirement's 4% Rule Now Thinks That's Way Too Low.' MarketWatch , May 2025, pp. 3–5.

6. Allianz Life Insurance. 'Ditch the Fear: A Guide to Embracing Retirement Preparedness.' Kiplinger , May 2025, pp. 1–2.

What benefits does the GPC Pension Plan provide to employees of Genuine Parts Company, and how are these benefits calculated for both Group 1 and Group 2 employees? In the context of Genuine Parts Company, what are the critical factors that determine the pension benefits for employees and how have recent changes to the plan affected these calculations?

The benefits of the GPC Pension Plan for Genuine Parts Company employees are calculated based on the employee’s Final Average Monthly Earnings (FAME) and years of Credited Service. For Group 1 employees, benefits are frozen as of December 31, 2013, with the FAME calculated from the five highest-paid years within the last ten years of service before that date. For Group 2 employees, benefits are similarly frozen as of December 31, 2008, and the same calculation of FAME is applied using the highest earnings before that freeze date(Genuine Parts Company_P…).

How do the eligibility requirements of the GPC Pension Plan differ between Group 1 and Group 2 employees at Genuine Parts Company? Additionally, what specific service requirements must employees meet to qualify for the benefits under each group, particularly considering the impact of employment history and rehire status on benefits?

Eligibility requirements differ between Group 1 and Group 2 employees. Group 1 includes employees with Rule of 70 status, who opted to continue participation in the plan after January 1, 2009. Group 2 employees, which include those rehired before December 31, 2013, had their Credited Service frozen earlier in 2008. Group 1 employees have Credited Service frozen as of December 31, 2013, while Group 2’s freeze date is December 31, 2008(Genuine Parts Company_P…).

What strategies can employees of Genuine Parts Company consider for optimizing their pension benefits when transitioning to retirement? Are there specific actions that employees should take prior to retirement to enhance their benefit calculations under the GPC Pension Plan, particularly in relation to Credited Service and Final Average Monthly Earnings?

To optimize pension benefits, Genuine Parts Company employees should focus on maximizing Credited Service and Final Average Monthly Earnings (FAME). Ensuring a full work history before the freeze date (2013 for Group 1, 2008 for Group 2) can enhance the benefit calculation. Employees can also review their Social Security benefit estimates, which are considered in calculating their pension(Genuine Parts Company_P…).

How does the vesting process work for employees participating in the GPC Pension Plan at Genuine Parts Company, and what implications does it have for those contemplating early retirement? Furthermore, how does the ability to vest at different service intervals specifically impact the retirement planning of employees?

The vesting process for the GPC Pension Plan requires employees to accumulate vesting service years, which continues even after the freeze date. Employees are automatically fully vested after seven years of service, or if they worked at least one hour after December 31, 2013. Vesting ensures the right to the earned pension benefits, which may affect retirement planning, especially for those contemplating early retirement(Genuine Parts Company_P…).

What information should Genuine Parts Company employees know about the different forms of payment available under the GPC Pension Plan once they reach retirement age? How do options such as life annuities and lump-sum payments affect the overall financial planning for retiring employees?

Genuine Parts Company employees can choose from various forms of pension payments upon retirement, including life annuities, joint and survivor annuities, and lump-sum payments. Each option affects financial planning differently: life annuities provide steady income, while lump sums offer flexibility but require careful management to ensure long-term financial stability(Genuine Parts Company_P…).

In the event of a termination of employment, what options are available for employees of Genuine Parts Company to access their pension benefits under the GPC Pension Plan? Additionally, what are the specific procedures that employees must follow to ensure they receive their benefits in a timely manner?

In the event of termination, employees who are vested can access their pension benefits, either at their normal retirement age or earlier if they meet the eligibility criteria for early retirement. Employees must submit a request within 180 days of their termination date to receive benefits, with options for lump sum payments for amounts under $75,000(Genuine Parts Company_P…)(Genuine Parts Company_P…).

How can employees of Genuine Parts Company ensure that their beneficiaries are appropriately named under the GPC Pension Plan? What considerations should employees keep in mind when designating beneficiaries, particularly understanding consent needs for spouses and the impact of domestic relations orders?

Genuine Parts Company employees should ensure their beneficiaries are properly named, particularly if married. A spouse is the default beneficiary, but spousal consent is required if an employee designates someone else. Domestic relations orders may also affect beneficiary designations(Genuine Parts Company_P…).

What unique situations might affect the pension benefits of employees at Genuine Parts Company, and how does the plan specifically address employees on military leave or long-term disability? In these circumstances, what communication strategies should employees employ to navigate their benefits?

For employees on military leave or long-term disability, the GPC Pension Plan provides special rules for calculating benefits. These employees should maintain close communication with the Employee Service Center to ensure their benefits are appropriately adjusted(Genuine Parts Company_P…).

Regarding the reporting and update of personal information, why is it essential for employees of Genuine Parts Company to keep the GPC Employee Service Center informed about any changes in marital status or address? How can failure to report these changes potentially impact the pension benefits they receive?

Employees must keep the GPC Employee Service Center informed of any changes in marital status or address, as failure to do so could result in delayed or incorrect pension benefit payments(Genuine Parts Company_P…).

How can employees at Genuine Parts Company reach out for further clarification on the details presented in the Summary Plan Description of the GPC Pension Plan? What resources or contact points are available that could assist in navigating the complexities of the pension plan, ensuring employees can maximize their benefits effectively?

Genuine Parts Company employees can reach out to the GPC Retirement Plan Services through their toll-free number or website for clarification on the pension plan details. These resources are crucial for navigating the complexities of the pension system(Genuine Parts Company_P…).

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

Pension Plan Name of the Pension Plan: Genuine Parts Company Defined Benefit Pension Plan Years of Service and Age Qualification: Employees generally need to have at least 5 years of service to qualify for benefits. Full benefits typically begin at age 65, but early retirement options may be available with reduced benefits. Pension Formula: The pension is calculated based on a formula that takes into account the employee's years of service and average salary over the highest-paid years. 401(k) Plan Name of the 401(k) Plan: Genuine Parts Company 401(k) Plan Eligibility: Employees are eligible to participate in the 401(k) plan after completing 30 days of service. 401(k) Plan Details: The plan allows employees to contribute a portion of their salary to a tax-deferred account, with potential company matching contributions.

Restructuring and Layoffs: In early 2024, Genuine Parts announced a significant restructuring initiative aimed at streamlining operations and enhancing efficiency. This restructuring plan includes the reduction of approximately 5% of its workforce across various divisions. This move is expected to help the company better adapt to market fluctuations and optimize its operational costs. The restructuring reflects broader industry trends as companies adapt to evolving economic pressures and changing market dynamics.

Genuine Parts Company (GPC) Stock Options and RSUs in 2022 GPC offered stock options and RSUs to executives and key employees as part of their compensation package. The stock options typically included a strike price set at market value at the grant date. RSUs granted by GPC generally vested over a period of three to four years, with the exact vesting schedule specified in individual agreements. Genuine Parts Company (GPC) Stock Options and RSUs in 2023 In 2023, GPC continued to offer stock options and RSUs to their management team and senior employees. The stock options were often part of performance-based compensation. The RSUs were allocated with a focus on aligning employee incentives with company performance, typically vesting in tranches over a multi-year period. Genuine Parts Company (GPC) Stock Options and RSUs in 2024 For 2024, GPC maintained its stock option and RSU programs, enhancing the benefits for senior executives and select high-performing employees. The company adjusted the vesting criteria and performance metrics for RSUs to reflect the company's strategic goals and market conditions.

1. Official Website and Key Benefits Information Genuine Parts Company Official Website Visit: Genuine Parts Careers Review sections on employee benefits and health plans. Look for specific healthcare-related terms and acronyms. Key Terms and Acronyms: HDHP: High Deductible Health Plan HSA: Health Savings Account EAP: Employee Assistance Program FSA: Flexible Spending Account PPO: Preferred Provider Organization HMO: Health Maintenance Organization Recent Updates: Genuine Parts Company offers comprehensive health benefits, including medical, dental, and vision plans. They also provide wellness programs and access to telemedicine services. 2. Reliable Sources and Recent Employee Healthcare News a. Glassdoor Search for Genuine Parts Company’s benefits reviews. Look for employee feedback on healthcare coverage and recent changes. b. Indeed Check employee reviews and Q&A sections for insights into health benefits. c. LinkedIn Explore company posts and employee discussions about health benefits. d. BenefitsPro Look for articles or reports on Genuine Parts Company’s health benefits updates and changes. e. Business Insider Search for news articles related to recent changes in health benefits or related employee programs at Genuine Parts. 3. Summary of Findings Healthcare Plans: Genuine Parts offers a range of health insurance options including PPO and HDHP plans, with contributions to HSAs and FSAs. They also provide access to preventive care and wellness programs. Recent Changes: Recent updates to their health benefits have included enhancements to telemedicine services and expanded mental health support through EAP programs. Employee Feedback: Employees generally appreciate the comprehensive coverage but have noted that premium costs and deductibles can be high.