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Healthcare Provider Update: Healthcare Provider for Occidental Petroleum Occidental Petroleum collaborates with Lyra Health to provide enhanced mental health benefits. This partnership offers employees access to cost-free mental and emotional healthcare, focusing on making effective services convenient and accessible. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs for employees at Occidental Petroleum are expected to rise significantly due to various market pressures. A recent forecast indicates an overall increase of approximately 8.5% in healthcare spending, driven by rising hospital and health system operating costs, along with increased demand for behavioral health services. Additionally, if enhanced federal premium subsidies for ACA marketplace plans are allowed to expire, many employees could face drastic hikes in their out-of-pocket costs. This scenario underscores the need for proactive planning and strategic adjustments in employee healthcare benefits amid a shifting economic landscape. Click here to learn more
For Occidental Petroleum employees nearing Retirement, understanding emotional factors such as psychological ownership and loss aversion may help with making smarter decisions about when to claim Social Security, and helping with a financially secure retirement, 'says [Advisor Name], of The Retirement Group, a division of Wealth Enhancement Group.
Taking into account psychological as well as health influences, Occidental Petroleum workers can make better Social Security claiming decisions to maximize Retirement benefits and long-term financial security, 'says [Advisor Name], a representative of The Retirement Group, a division of Wealth Enhancement Group.
In this article we will discuss:
1. The psychological factors that influence early Social Security claimants.
2. Financial effects of early versus delayed claiming on lifetime retirement income.
3. Role of financial planners and policymakers in helping retirees make sound claiming decisions.
Many Occidental Petroleum workers make a tough decision about Social Security benefits. Though financial planners typically suggest putting off benefits as long as possible to maximize retirement income, many retirees choose to claim benefits early. So this is what has been called, and a new study explores the psychological factors underlying such choice.
The research by Suzanne Shu of Cornell University and John Payne of Duke University finds psychological ownership and loss aversion to be two critical psychological traits driving insurance claims decisions.
Psychological ownership involves feeling that something is one's own. Occidental Petroleum employees who believed they earned their Social Security benefits were more likely to choose early claiming, the study found. They feared not getting all of their contributions if they died earlier than the average life expectancy because they considered themselves owners of their benefits.
The second is loss aversion — fear of losses more than desire gains. Moreover, higher loss aversion among Occidental Petroleum employees increased the odds that they would file early for Social Security benefits because they feared not getting all of them.
Occidental Petroleum employees must understand early claims have serious financial consequences. The work showed that early claiming could cut the present value of a worker's lifetime discretionary expenditure by USD 182,370 compared with what would be optimal under other conditions.
The researchers found educational materials and conversations with financial planners that address the financial costs of having these psychological traits might help retirees make more rational claiming decisions. However, a straightforward data presentation demonstrating the added value of deferring claims had no effect. It may be because prospective recipients focus on the possibility of dying before the average life expectancy, which causes loss aversion and early claiming.
Consider a single male 62 years old who will receive USD 1,789 a month at full retirement age (67) as an example of how delaying claiming could affect him. He will be ahead of a late claimant if he claims early at age 62 and lives to age 70. But if he dies at age 90, late filing is more than USD 130,000 more advantageous.
The study raises important questions for upcoming and current retirees. Though some will point to natural tendencies toward psychological ownership and loss aversion, policymakers and financial planners must understand how these personality traits influence the decision to apply for Social Security.
Occidental Petroleum employees nearing retirement need to know the consequences of early claiming. Consider your health situation and family life expectancy if you decide this. Early claims may be reasonable in some cases if ill health or shorter life expectancies are significant factors.Retirees who have taken their benefits can always rethink their decision later. If your health and finances permit, you may be able to maximize your retirement income through delayed claiming.
Policies and financial planners can help directly address these psychological traits. Educative materials must help retirees understand their claiming options, how early versus delayed claiming might affect them and how planning for an extended retirement might help them. Furthermore, financial advisors could have candid conversations about how claiming decisions affect people emotionally and assist retired people in making educated decisions tailored to their situation.
As you near retirement, plan to claim Social Security benefits now. Making educated decisions can improve your retirement standard. You can decipher the Social Security claiming maze and enjoy a financially secure retirement with the right knowledge and direction.
A study in the Journal of Financial Planning in June 2023 estimated that retirees who wait to claim Social Security benefits until Age 70 could see an average 24% increase in their monthly benefit payments compared to those who claim at Full Retirement age (FRA). Such a huge jump could dramatically raise the retirement standard of living among our 60+ target audience of Occidental Petroleum retirees and baby boomers. Waiting until age 70 could offer a way to maximize Social Security and improve retirement savings.
Discover how psychological ownership and loss aversion influence insurance claims. Understand what you can do — early beneficiaries can trim USD 182,370 of lifetime discretionary spending. Delaying benefits by 24% from the Full Retirement Age means benefits would increase by 24% over what you would get if you claimed at the Full Retirement Age. If you are a current retiree or an employee about to retire, do not delay securing a comfortable retirement. How to navigate the Social Security application maze & make informed financial decisions.
Choosing when to claim Social Security benefits is like planning a cross-country road trip. Imagine you have two routes to choose from: One is short and uncertain, the other long but smoother and scenic. Early claiming is like taking the shortest route to your destination — it gets you there faster, but you miss out on the sights along the way. Delayed claims are like taking the longer route — you have to wait — but the journey is more rewarding and financially secure. As a mature traveler would do, so should our 60-year-old audience of Occidental Petroleum employees approaching retirement and current retirees — consider your options, go for it — and make an informed decision that leads to a satisfying retirement.
Added Fact:
And aside from the psychological factors discussed in the article, Occidental Petroleum workers should also consider their own health and longevity before they begin receiving Social Security benefits. For healthy people with a long tradition of longevity, delaying benefits until later ages such as 70 can result in a larger lifetime income. While some psychological factors such as loss aversion may influence the decision, the potential financial benefits of delaying benefits should be balanced against individual health considerations as they may affect retirees' financial security.
Added Analogy:
Deciding when to start collecting Social Security benefits is like choosing the right time to harvest a tree you've grown up with for years. Imagine you are an orchardist tending a fruit tree in your garden. You know that if you picked the fruit too early it may not be at its peak sweetness and size and you would not have enjoyed the full bounty. Or wait too long and the fruit will be overripe and will just plop to the ground. And just like that, the timing of Social Security benefit claims is delicate. Taking advantage of too early claims may leave benefits on the tree, and waiting too long may mean missing out. You must assess whether your financial orchard is ready for harvesting — and not just the fruit itself — but you too. Doing so lets you enjoy the fruits of your labor in retirement.
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Sources:
1. Shu, Suzanne B., and John W. Payne. Social Security Claiming Intentions: Psychological Ownership, Loss Aversion, and Information Displays . National Bureau of Economic Research, 2023, nber.org .
2. Shu, Suzanne B., John W. Payne, and Naoko Sagara. The Psychology of SSA Claiming Decisions . Center for Retirement Research at Boston College, 2014, crr.bc.edu .
3. Lynch, Michael. 'A Case for Procrastination: Why Waiting to File for Social Security Benefits Pays Off.' Hartford Funds , 2023, hartfordfunds.com .
4. Payne, John W. 'The Psychology Behind Claiming Social Security Too Early.' Duke Fuqua Insights , 2024, fuqua.duke.edu .
5. Collinson, Chris. 'Waiting until Age 70 to Claim Social Security Gets You a Lot More Money.' MarketWatch , 2024, marketwatch.com .
What are the key provisions of the Occidental Petroleum Corporation Retirement Plan that employees should understand to maximize their benefits, and how does the company structure its contributions relative to employees' earnings? As employees of Occidental Petroleum Corporation consider their retirement planning, it's vital to grasp how the company's contributions function, particularly concerning the wage base and annual earnings limits.
Key Provisions of the Occidental Petroleum Corporation Retirement Plan: The Occidental Petroleum Corporation Retirement Plan is fully funded by the company, with contributions based on an employee's annual earnings. The company contributes 7% of annual earnings up to the Social Security wage base ($137,700 in 2020) and 12% on earnings above the wage base. This structure is designed to help employees build substantial retirement savings. The plan's benefit limits align with IRS regulations, and employees should be aware of how these contributions are applied based on annual earnings limits to maximize their benefits(Occidental_Petroleum_Co…).
How can Occidental Petroleum Corporation employees manage their investment options within the Retirement Plan, and what resources does the company provide to help them make informed decisions? The investment options available through the Occidental Petroleum Corporation Retirement Plan serve as a significant tool for employees wishing to tailor their retirement savings according to their financial goals and risk tolerance. Understanding these options can be complex and requires an in-depth exploration of available funds, associated risks, and projected performance.
Managing Investment Options: Occidental Petroleum employees have control over how contributions to their Retirement Plan are invested. The plan offers various investment funds, including bond and stock market index funds, and target date funds. Employees can manage their investment elections through the online platform, oxy.voya.com, which also provides fund performance data and advice resources, such as Online Advice and Professional Management services, to assist employees in making informed decisions(Occidental_Petroleum_Co…).
In what ways do vesting schedules impact employees' retirement benefits at Occidental Petroleum Corporation, and what rights do employees have under the Employee Retirement Income Security Act (ERISA) regarding these benefits? Navigating the vesting schedule can make a profound difference in the go-forward retirement landscape for employees. Occidental Petroleum Corporation offers a structured approach to vesting, impacting when benefits are owned outright, and understanding the implications of ERISA for retirement planning is essential for all employees.
Impact of Vesting Schedules: Occidental Petroleum's Retirement Plan vests fully after three years of service. Employees are always fully vested in any Rollover accounts. Vesting schedules impact when employees can fully claim their retirement benefits, with protections under ERISA that guarantee the right to earned benefits. Employees who leave before vesting forfeit the nonvested portion of the company’s contributions(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
What are the distribution options available for employees of Occidental Petroleum Corporation when they reach retirement age, and how do these options affect their financial planning? The variety of distribution options at Occidental Petroleum Corporation can create a much more personalized retirement plan, allowing employees to consider how best to receive their benefits while factoring in tax implications and future income needs.
Distribution Options at Retirement: Employees reaching retirement age (60) have multiple distribution options from the Retirement Plan, including lump sum payments and annuity options. These choices impact financial planning, as each option has different tax and income implications, allowing employees to tailor their benefits to their future financial needs(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
How does Occidental Petroleum Corporation support employees who experience disability, and what provisions are in place for continuing retirement contributions during such periods? Understanding the support structure provided by the company, specifically in relation to short-term and long-term disability, is crucial for employees who may find themselves in unexpected circumstances. It’s important for them to know whether retirement contributions will continue during their disability or if they might need to make adjustments to their financial planning.
Disability and Retirement Contributions: Occidental Petroleum continues to contribute to the Retirement Plan if an employee is receiving short-term disability benefits. The contributions are based on the employee's actual pay during the disability period. This provision ensures that retirement savings can continue during times of temporary disability, supporting long-term financial planning(Occidental_Petroleum_Co…).
How can employees at Occidental Petroleum Corporation ensure their beneficiary designations remain current and what are the implications of these designations for estate planning? The process of maintaining accurate beneficiary designations is critical for the smooth transition of retirement benefits, and employees must be aware of how changes in personal circumstances can impact these designations.
Beneficiary Designations: Employees should regularly update their beneficiary designations to ensure their retirement benefits are directed as desired upon their death. Changes in personal circumstances such as marriage, divorce, or the death of a previously designated beneficiary should prompt an update. Failure to do so may result in unintended allocations(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
What are the specific eligibility requirements for the Occidental Petroleum Corporation Retirement Plan, and how do these requirements differ for various employee categories, such as full-time versus part-time employees? Recognizing the nuances of eligibility criteria within the retirement plan is essential for employees to understand when they can begin to participate and what contributions may apply, especially if they transition between roles.
Eligibility Requirements: Full-time and part-time non-union employees and some union-represented employees are eligible to participate in the plan. Contributions begin automatically on the first day of the month of employment or eligibility. Understanding the specific eligibility requirements, especially for employees transitioning between full-time and part-time roles, ensures accurate participation and benefit accumulation(Occidental_Petroleum_Co…).
How can employees reach out to Occidental Petroleum Corporation for assistance regarding their Retirement Plan benefits, and what are the best practices for ensuring their inquiries are addressed promptly? Effective communication with the company is key during the retirement planning process. Employees should know how to navigate company channels to maximize their understanding of benefits available to them.
Contacting Occidental Petroleum for Assistance: Employees can manage their retirement plan and address inquiries through the Oxy Retirement Service Center and the oxy.voya.com platform. Best practices for ensuring prompt responses include using the appropriate online tools and staying informed about plan updates and changes(Occidental_Petroleum_Co…).
What are the tax implications of distributions from the Occidental Petroleum Corporation Retirement Plan, and how can employees plan accordingly to minimize their tax burden during retirement? Having a comprehensive understanding of how taxes will impact withdrawals is crucial for employees as they strategize their retirement income, and these tax considerations can play a significant role in long-term financial planning.
Tax Implications of Distributions: Distributions from the Occidental Petroleum Retirement Plan are subject to standard federal and state taxes, including required minimum distributions (RMDs) starting at age 72. Employees should consider consulting a tax advisor to minimize tax burdens and maximize retirement income by understanding the specific tax consequences of various distribution options(Occidental_Petroleum_Co…).
How does Occidental Petroleum Corporation's retirement plan structure address the needs of employees transitioning from active service to retirement, particularly in terms of investment performance and management of existing accounts? As employees consider retirement, they should be well-informed about how the company manages contributions already made, ensuring that their investment strategy aligns with their anticipated retirement lifestyle and goals.
Transition from Active Service to Retirement: Occidental Petroleum supports employees transitioning to retirement by continuing contributions and offering a range of investment options that align with long-term financial goals. This structure allows employees to manage their investments effectively during retirement, ensuring that the plan remains aligned with their financial objectives(Occidental_Petroleum_Co…).
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