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

Healthcare Provider Update: Textron, an aerospace and defense company, primarily uses UnitedHealthcare as its healthcare provider for employee health plans. In 2026, healthcare costs are anticipated to rise significantly, with many Affordable Care Act (ACA) marketplace insurers projecting premium increases. A combination of factors-including the potential expiration of enhanced federal premium subsidies-could lead to out-of-pocket costs skyrocketing for millions of consumers. For instance, without these subsidies, many individuals may face premium hikes of over 75%. States like New York and Arkansas are expecting the most severe increases, with some premiums rising by up to 66.4%. This trend underscores the rising burden of healthcare costs, making it imperative for consumers to strategize their healthcare expenditures ahead of 2026. Click here to learn more

'Textron 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, Textron 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 Textron 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 Textron 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 Textron 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 Textron 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.

How does the retirement process at Textron Systems begin for employees, and what initial actions should they consider taking leading up to their retirement date? What are the key timelines and steps involved in initiating their retirement plan with Textron Systems, and how can these impact their retirement benefits?

Retirement Process Initiation: Employees planning retirement with Textron Systems should start by preparing 180 days before their desired retirement date. This involves confirming eligibility for the pension plan, ensuring it is within 180 days of their pension benefit commencement date, and reviewing their current pension benefit options on Fidelity's website. The retirement election process begins by contacting the Fidelity Benefits Service Center to request the necessary forms 45 to 90 days before the desired benefit start date(Textron Systems_Getting…).

What are the eligibility criteria for retiring employees under the Textron retirement plan, specifically regarding service hours and plan details? Furthermore, how do any past employment records with AVCO Corporation influence retiree benefits under Textron Systems?

Eligibility Criteria and AVCO Corporation Influence: Employees become eligible for the Textron Retirement Plan by completing at least 1,000 compensated hours per year. If the employee worked for AVCO Corporation before the merger with Textron, they may have additional retirement benefits, such as federal tax exclusions on part of their pension, if they kept their contributions in the AVCO Retirement Plan(Textron Systems_Getting…)(Textron Systems_Getting…).

How are the various pension benefit options structured within the Textron Systems retirement program, and what considerations should employees keep in mind when choosing between these options? Additionally, what happens if an employee wishes to change their payment option after retirement?

Pension Benefit Options: Textron Systems offers multiple pension payment options, including Single Life Annuity, Joint and Survivor Annuities, and Year Certain and Continuous Annuities. The chosen option is crucial, as it impacts retirement income and cannot be changed once the pension payments begin. Employees should consider their financial situation and consult a financial advisor before making a decision(Textron Systems_Getting…).

What documentation is necessary for Textron Systems employees to gather and submit in order to collect their pension benefits? How does the provision of accurate and complete data affect the processing of their retirement applications with Textron Systems?

Required Documentation: Employees must gather specific documents, such as birth certificates (for both the employee and spouse if applicable), marriage certificates, and a voided check for direct deposit. Providing accurate and complete information helps avoid delays in the retirement application process(Textron Systems_Getting…).

What tax implications should Textron Systems employees be aware of concerning their pension benefits, particularly in relation to IRS regulations? Additionally, how can employees explore the possibility of non-taxable portions of their retirement income?

Tax Implications: Pension payments are generally considered taxable income by the IRS and the state, except in some cases for former AVCO Corporation employees. Employees should consult a tax advisor for more specific information regarding potential tax exclusions(Textron Systems_Getting…).

In what ways does Textron Systems provide for the continuation of health insurance for spouses of retiring employees, particularly if the spouse is under 65? What specific documentation is required, and how does this process differ from regular health insurance enrollment?

Health Insurance for Spouses: If a retiring employee’s spouse is under 65, Textron Systems requires a letter from a Textron HR representative to verify prior coverage under the company's medical plan. This differs from regular enrollment, as the new insurer may require proof of prior coverage(Textron Systems_Getting…).

How does the decision to retire before the age of 65 affect an individualâ€™s pension benefits within the Textron retirement plan? What specific reductions and conditions should potential retirees consider when making this decision?

Retirement Before Age 65: Retiring before age 65 results in a permanent reduction in pension benefits. Typically, the reduction is 5% per year under the age of 65, though some employees may be eligible for an unreduced pension based on certain age and service requirements(Textron Systems_Getting…).

What strategies can Textron Systems employees adopt to prepare for their transition into retirement in a way that ensures a smoother process? How can employees manage emotional and practical aspects of retirement to facilitate this major life change?

Retirement Transition Strategies: Employees are encouraged to start retirement planning well in advance to ensure a smooth transition. Engaging with financial planners, addressing emotional and practical aspects, and having clear goals can help manage the complexities of retirement(Textron Systems_Getting…).

What steps should employees take if they experience difficulties accessing their retirement benefits through Fidelityâ€™s services as coordinated by Textron Systems? In what ways does Textron Systems support employees in resolving such issues?

Accessing Benefits Through Fidelity: If employees face difficulties accessing their retirement benefits through Fidelity, they should contact Fidelity’s Benefits Service Center. Textron Systems provides support through coordinators who help resolve such issues(Textron Systems_Getting…).

How can Textron Systems employees reach out for additional information about their retirement process and benefits packages? What are the specific contact details for reaching a retirement benefits coordinator at Textron, and what resources does the company offer to assist employees in their retirement planning?

Contacting Retirement Coordinators: Employees can reach out to the Fidelity Benefits Service Center at 1-866-698-9847 for assistance with their retirement benefits. Fidelity’s website, www.netbenefits.fidelity.com, is also available for reviewing pension options and benefits(Textron Systems_Getting…)(Textron Systems_Getting…).