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

Preparing to Retire from Hershey Within Five Years? Start with This Smart Checklist

Healthcare Provider Update: Healthcare Provider for Hershey: The Hershey Company utilizes a comprehensive employee health plan primarily administered by Aetna. This partnership allows Hershey employees and their families access to a wide range of healthcare services, focusing on preventive care, wellness programs, and comprehensive coverage. Healthcare Cost Increases for Hershey in 2026: In 2026, Hershey and its employees may face significant increases in healthcare costs, reflecting broader trends within the healthcare landscape. With anticipated ACA premium hikes, many enrollees could see their out-of-pocket costs surge by over 75% due to the potential expiration of enhanced federal premium subsidies. Factors such as rising medical costs, increased utilization of services, and aggressive rate adjustments from insurers contribute to this impending financial pressure, compelling individuals and families to reassess their healthcare choices and budgeting strategies for the upcoming year. Click here to learn more

'Hershey employees should prioritize proactive retirement planning by carefully evaluating their spending, adjusting their portfolio risk, and factoring in health care costs, all of which can support a more stable and fulfilling retirement journey.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'By taking a hands-on approach to retirement planning, Hershey employees can steer clear of common pitfalls and prepare for the financial demands of retirement, from health care costs to sustainable income strategies.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

The importance of proactive retirement planning for Hershey employees.
Key steps to take within five years of retirement, including reviewing benefits and spending.
Strategies for managing health care costs and adjusting investment portfolios as retirement approaches.

Planning for retirement requires careful consideration, particularly as your retirement date approaches. Automatic payroll deductions through Hershey benefits programs may have made investing feel seamless, but effective retirement planning requires a hands-on strategy. Getting ahead of the curve allows you to refine your retirement plan to align with your objectives.

If you plan to retire from Hershey within the next five years, begin taking these five key steps now:

1. Rethink the Function of Employment in Retirement

It’s important to assess whether you plan to continue working in some capacity during retirement. Consulting or part-time work might help ease the transition and provide supplemental income, but it shouldn’t be the core of your strategy. For Hershey professionals, unexpected life changes or health issues may make continued work uncertain. Planning for retirement with financial independence—without relying on future earnings—creates a foundation for a smoother experience.

2. Monitor and Comprehend Your Spending

Understanding your current spending is crucial for estimating what you might need later. As a Hershey employee, your spending habits could shift post-retirement—especially regarding health care, housing, and lifestyle choices. Evaluating your needs now provides insight into whether you’re on track to meet your retirement objectives. By revisiting your budget and savings patterns today, you can reduce the likelihood of surprises later on.

3. Examine Your Benefits from Social Security

Social Security plays a key role in retirement for many Americans. Begin by checking your information on the Social Security Administration’s website to model different claiming scenarios. For Hershey employees, understanding the timing of when to begin collecting benefits—such as delaying until full retirement age—could substantially impact your monthly payments. Including this in your plan will help create a more effective retirement income strategy.

4. Evaluate Your Retirement Funds

Take a close look at your Hershey retirement accounts and personal savings. Review how much you’ve saved, how your portfolio is allocated, and what income sources you expect to draw from. Subtract your estimated Social Security income from your expected living expenses to calculate how much you’ll need to withdraw. Depending on your financial needs, you may need to adjust your spending, increase contributions, or delay your retirement date.

5. Reduce the Risk in Your Portfolio

As you near retirement, consider shifting your investment portfolio toward less volatile assets. Hershey employees who experience a market downturn early in retirement could face long-term impacts. Lowering exposure to riskier assets may give you more flexibility during market dips. This adjustment can help you preserve principal and draw income from more stable sources in your early retirement years.

Starting early on these five steps can lead to a smoother and more confident transition into retirement. Hershey professionals who commit to reviewing and refining their plans now may be better positioned to shape the retirement lifestyle they envision. Proactive planning offers greater clarity into your future finances and more control over your timeline.

Medical expenses are a major factor to incorporate into your retirement planning. According to a 2023 Fidelity Investments report, a 65-year-old couple retiring today is expected to spend an average of $315,000 on health care throughout retirement. Hershey retirees should factor this into their savings plans. Allocating funds for future health care needs can help cover both routine and unexpected medical costs, reducing financial pressure later on.

If you're expecting to retire from Hershey in the next five years, this checklist provides a structured roadmap to follow. From reviewing your Social Security benefits and investment allocations to preparing for health care costs, these steps are designed to help you maintain financial balance. Evaluating spending, reconsidering the role of post-retirement work, and shifting toward lower-risk investments can help you face retirement with more confidence and fewer surprises.

Think of preparing for retirement like planning a cross-country trip. You wouldn’t hit the road without checking your car, mapping your route, and making sure you have enough fuel. Likewise, Hershey employees shouldn’t head into retirement without reviewing finances, factoring in health care, and organizing their resources. With these steps in place, you're better equipped for the journey ahead—and ready to enjoy the ride.

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Articles you may find interesting:

Sources:

1. 'The Unexpected Cost That Could Ruin Your Retirement.' Investopedia, 4 June 2025.

2. Sloan, Jim. 'I'm a Wealth Manager: This Is How to Reduce One of the Biggest Risks to Your Retirement.' Kiplinger, 2 June 2025.

3. 'Retirees: Tune Out the Noise When Filing for Social Security.' Barron's, 2 June 2025.

4. 'How Often Should You Review Your 401(k) To Maximize Returns?' Investopedia, 4 June 2025.

5. '5 Ways to Track Your Budget in the Years Before You Retire.' Kiplinger, 4 June 2025.

What is the Hershey 401(k) plan?

The Hershey 401(k) plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or post-tax basis.

How does Hershey match employee contributions to the 401(k) plan?

Hershey offers a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions, up to a certain limit.

When can employees at Hershey enroll in the 401(k) plan?

Employees at Hershey can enroll in the 401(k) plan during their initial onboarding period or during specific open enrollment periods throughout the year.

What investment options are available in Hershey's 401(k) plan?

Hershey's 401(k) plan provides a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their retirement savings.

Can employees at Hershey take loans against their 401(k) savings?

Yes, Hershey allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

What is the vesting schedule for Hershey's 401(k) matching contributions?

The vesting schedule for Hershey's 401(k) matching contributions typically follows a graduated schedule, meaning employees earn ownership of the match over a specified period of service.

How can Hershey employees access their 401(k) account information?

Hershey employees can access their 401(k) account information through the company's employee benefits portal or by contacting the plan administrator.

What happens to a Hershey employee's 401(k) if they leave the company?

If a Hershey employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Hershey plan if eligible.

Are there any fees associated with Hershey's 401(k) plan?

Yes, there may be fees associated with Hershey's 401(k) plan, such as administrative fees or investment management fees, which are disclosed in the plan documents.

How does Hershey educate employees about the 401(k) plan?

Hershey provides educational resources, workshops, and one-on-one consultations to help employees understand their 401(k) options and make informed decisions.

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

Hershey Employee Pension Plan: Name of Plan: Hershey Company Pension Plan. Pension Formula: Hershey's pension formula typically involves a defined benefit formula based on years of service and final average salary. However, specific details about the formula can be complex and may require accessing detailed plan documents. Years of Service and Age Qualification: Generally, eligibility for the pension plan requires a certain number of years of service and reaching a specific age. The details can vary depending on the plan's provisions for different employee groups. Qualification Criteria: Typically, employees must reach a specific age (often 55 or older) and have a minimum number of years of service (such as 5 or 10 years) to qualify for full pension benefits. Hershey 401(k) Plan: Name of Plan: Hershey 401(k) Savings Plan. Qualification for Plan: Employees are usually eligible to participate in the 401(k) plan from their date of hire. Contributions are made through payroll deductions, and Hershey may offer matching contributions based on the employee’s contribution rate. Contribution Limits: The plan generally follows IRS limits for employee contributions and employer matching contributions.

Hershey announced a series of organizational changes aimed at streamlining operations and improving efficiency. This includes a reduction in workforce as part of a broader restructuring effort. The company stated that these measures are necessary to adapt to changing market conditions and to position itself for future growth. The layoffs and restructuring are a response to the current economic climate, which demands greater agility and cost management. Given the evolving economic and political landscape, staying informed about these changes is crucial for understanding their impact on the company's strategic direction and employee relations.

Stock Options: Hershey offers stock options as part of its employee compensation packages. The options are typically granted to senior executives and key employees based on performance metrics and tenure. (Source: Hershey 2022 Annual Report, p. 58) RSUs: Restricted Stock Units are granted to employees as a form of long-term incentive. RSUs at Hershey are usually awarded to senior management and high-potential employees, vesting over a period of time. (Source: Hershey 2023 Proxy Statement, p. 34) Eligibility: Hershey's stock options and RSUs are generally available to senior executives, directors, and sometimes high-performing employees. These incentives are designed to align employee interests with company performance. (Source: Hershey 2024 Form 10-K, p. 45)

Employee Reviews: Employees have noted positive aspects of Hershey’s health benefits, including the comprehensive nature of their health coverage and wellness programs. However, there have been occasional comments about the high costs associated with some of the plans. Recent Changes: There has been no significant news about major changes to Hershey’s health benefits from employee reviews on Glassdoor.