Healthcare Provider Update: For Entergy, the healthcare provider is typically UnitedHealthcare, which offers a range of health insurance plans to its employees and their families. As the backdrop of rising healthcare costs intensifies, Entergy may face significant healthcare cost increases in 2026. With the upcoming expiration of enhanced federal premium subsidies, millions of Americans could experience a staggering jump in monthly out-of-pocket costs-potentially exceeding 75% for those benefiting from the Affordable Care Act marketplace. Factors contributing to these surges include aggressive premium hikes from major insurers, coupled with higher medical costs attributed to inflation and increased healthcare utilization. As such, it will be imperative for Entergy and its employees to strategize and prepare for these escalating expenses to mitigate financial impacts in the coming year. Click here to learn more
'Understanding demographic trends, like the Middle-Old ratio, can offer invaluable insight for Entergy employees planning for retirement, as it highlights the potential for slower stock market growth in the future and suggests strategic adjustments to portfolios to align with shifting global economic conditions.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.
'By recognizing the impact of demographic shifts, such as the Middle-Old ratio, Entergy employees can better position their retirement portfolios to navigate upcoming market changes and demographic-driven economic shifts, helping their retirement planning to remain resilient in the face of long-term trends.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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The impact of demographic shifts, particularly the Middle-Old ratio, on stock market trends and retirement planning.
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How population changes influence market cycles and economic growth, with a focus on Entergy employees.
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Strategies for adjusting retirement portfolios based on demographic forecasts, including exposure to emerging markets.
The long-term outlook for stock markets and retirement planning is being affected by the demographic changes happening in the United States and other industrialized nations. The 'Middle-Old ratio' (M/O ratio), which analyzes the ratio of middle-aged to elderly individuals, is a key factor that investors, particularly Entergy employees, should consider when planning for the future. For those preparing their retirement plans over the next decade or more, this ratio offers a unique approach to forecasting long-term stock market trends.
The Effect of the M/O Ratio on Stock Markets
The M/O ratio is determined by dividing the number of individuals aged 40 to 49 by the number of people aged 60 to 69. This metric has shown a strong correlation with long-term stock market cycles, especially in the S&P 500. Research conducted by Alejandra Grindal, chief economist at Ned Davis Research, has revealed that shifts in the M/O ratio often coincide with significant highs and lows in the stock market. 1
For example, in 2000, when the internet bubble burst and the 1990s bull market reached its peak, the M/O ratio reached its highest point. This marked the end of an era of rapid economic growth and stock market gains. Following this peak, the ratio began to decline, mirroring the 2008 global financial crisis and the subsequent bear market. Since the middle of the 2010s, the M/O ratio has been rising, indicating that a shift may be on the horizon within the next decade.
It is essential to note that while the M/O ratio may act as an indicator for long-term market trends, it is not useful for forecasting short-term market movements. For instance, it did not signal the steep market declines in 2022. Nevertheless, it remains a valuable tool for understanding the cyclical nature of the stock market.
The Influence of Demographics on Stock Market Cycles
John Geanakoplos, a professor at Yale University, has made significant contributions to understanding the relationship between financial markets and demographics. His 2002 study highlighted that many of the boom-and-bust cycles in the stock market since World War II can be attributed to shifts in population composition, particularly the proportion of middle-aged versus elderly individuals. 2 Geanakoplos explained that stock markets tend to rise when a significant portion of the population is in their prime working years and decline when a larger share of the population is elderly and no longer contributing to the economy.
This demographic shift is driven by the relative sizes of different age groups, not just the overall population. While some may focus on population growth when forecasting economic outcomes, it is the relative sizes of the middle-aged and senior cohorts that most significantly impact stock market performance.
It is expected that the M/O ratio will continue to rise into the 2030s. However, it will begin to decline again around the mid-2030s, which may signal a slowdown in stock market growth. This long-term pattern suggests that investors, particularly those at Entergy preparing for retirement, should be ready for potentially weaker equity returns starting in the early 2030s.
Taking Demographic Trends into Account When Managing Your Retirement Portfolio
Anyone preparing for retirement, especially Entergy employees with a long investment horizon, should understand how demographic shifts influence stock markets. This information can help you adjust your portfolio to align with anticipated market conditions, particularly if you are more than ten years away from retirement. As the M/O ratio seems to be peaking, it may be time to consider reducing exposure to U.S. stocks and reallocating to other regions, such as emerging markets.
For those nearing retirement, traditional strategies like those in target-date funds often recommend gradually decreasing equity exposure. For example, Vanguard’s target-date funds suggest a 30% allocation to U.S. stocks by the time an investor turns 65. However, due to demographic trends, a more cautious approach may be needed, especially for those in their 60s who wish to limit exposure to U.S. stocks.
Investors should also reevaluate the international component of their portfolios. While Vanguard's glide path recommends a 20% allocation to non-U.S. stocks, this may need to be adjusted based on the demographic outlook of specific countries. Over the next 25 years, developed nations outside the U.S. will also experience a decline in their M/O ratios, but not as sharply as in the U.S.
In the coming decades, emerging markets, particularly in Asia and Africa, are expected to see higher M/O ratios. As a greater portion of their populations enters middle age, these regions could experience economic expansion and market growth. To capitalize on these trends, it might make sense to increase your exposure to emerging markets, especially if you are nearing or already in retirement.
Conclusion: Preparing for Population Shifts and Stock Market Changes
Demographic trends, as illustrated by the M/O ratio, may influence stock markets and retirement planning. These trends indicate that starting in the early 2030s, investors, particularly those at Entergy with long-term horizons, may want to prepare for a period of potentially slower equity growth. As the middle-aged population reaches its peak, the stock market dynamics may shift, potentially leading to reduced returns in developed nations, including the United States.
To account for these anticipated demographic changes, it may be helpful to consider lowering your exposure to U.S. stocks and increasing your investment in emerging markets, where demographic trends appear more favorable. By adjusting your portfolio to reflect these long-term patterns, you can potentially position for a future with slower market growth and shifting global economic conditions. For a more sustainable retirement, begin planning now.
As the elderly population grows, the global workforce is shrinking, which could slow economic growth. A 2023 World Economic Forum report states that aging populations are contributing to a decline in the global workforce, potentially dampening economic productivity. This trend may lead to slower stock market returns and increased inflation, especially in developed countries where the aging population is advancing more rapidly.
Retirement planning must evolve as demographic changes and stock market patterns change. Understanding the M/O ratio and its implications could help you adjust your retirement portfolio, especially when considering opportunities in emerging markets. By aligning your investments with these demographic shifts, you can better prepare for a future where market growth may slow, supporting a more sustainable retirement.
Think of the stock market as a vehicle traveling along a winding road. For years, the car has been running smoothly, driven by a powerful engine (the large working-age population). But now, the engine is aging, and the fuel (economic growth and productivity) is running low. The aging population is like the car approaching a steep incline. Investors must adjust their speed, refuel with more strategic investments, and be ready for a slower journey into retirement.
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Sources:
1. Grindal, Alejandra. 'Why America's Aging Population Will Be a Problem for Stocks and Your Retirement.' Morningstar , 2 June 2025.
2. Geanakoplos, John, Michael Magill, and Martine Quinzii. 'Demography and the Long-Run Predictability of the Stock Market.' Brookings Institution , Jan. 2004, pp. 245–311.
3. Roberts, Stan. 'Why America's Aging Population Will Be a Problem for Stocks and Your Retirement.' MarketWatch , 2 June 2025.
4. VanEck Research Team. 'Emerging Markets: Policy Uncertainty Tempers a Strong Start to 2025.' VanEck , May 2025.
5. BlackRock. 'Five Forces Shaping Retirement.' BlackRock , Feb. 2025.
How does Entergy Nuclear Operations, Inc. determine the eligibility criteria for employees participating in the pension plan, and what specific conditions must be met for an employee to qualify for benefits under Appendix G of the Plan?
Eligibility Criteria for Pension Plan: Entergy Nuclear Operations, Inc. determines pension eligibility based on Vesting Service and age. Employees generally become 100% vested after five years of service or upon reaching age 61 while employed. Special provisions may apply to employees who participated in the Vermont Yankee Plan as of July 31, 2002(Entergy_Nuclear_Operati…).
What are the specific steps and necessary documentation required for an employee of Entergy Nuclear Operations, Inc. to commence their pension benefits once they reach retirement age, and how does this process differ for those with previous employment at other participating companies?
Commencing Pension Benefits: To commence pension benefits, an employee must file an application with the Entergy Pension Resource Center (EPRC). This includes providing necessary documentation, such as proof of age and employment history. Employees who have worked for other participating companies must account for service under prior employers, which may impact the pension calculation(Entergy_Nuclear_Operati…).
In what ways does Entergy Nuclear Operations, Inc. ensure that employees understand their rights under the Employee Retirement Income Security Act (ERISA), and what resources are available for employees seeking clarification on their pension benefits?
ERISA Rights and Resources: Entergy Nuclear Operations, Inc. ensures employees understand their rights under the Employee Retirement Income Security Act (ERISA) by providing access to the plan documents and offering assistance through the Entergy Pension Resource Center. Employees can request clarification on pension benefits by contacting EPRC(Entergy_Nuclear_Operati…).
How does the non-bargaining and bargaining employee classification at Entergy Nuclear Operations, Inc. impact the pension benefits available, and what should employees consider when planning for retirement in light of these classifications?
Impact of Non-Bargaining and Bargaining Classifications: The classification between non-bargaining and bargaining employees affects pension benefits. Non-bargaining employees are covered under Appendix G of the Plan, which may provide different accrual rates and benefit options compared to bargaining employees. These classifications impact retirement planning, as different rules may apply depending on the classification(Entergy_Nuclear_Operati…).
What provisions are in place at Entergy Nuclear Operations, Inc. for beneficiaries to receive benefits upon an employee's death, and how do these benefits differ based on whether the employee had already commenced their pension?
Death Benefits for Beneficiaries: In the event of an employee's death, the Entergy pension plan provides benefits to beneficiaries. If the employee has already commenced pension payments, the form of payment selected will determine the survivor benefits. If the employee passes away before starting pension benefits, the spouse may receive pre-retirement survivor benefits(Entergy_Nuclear_Operati…).
How does Entergy Nuclear Operations, Inc. calculate the normal retirement pension, and what factors play a crucial role in determining an employee's monthly benefit under Appendix G of the Plan?
Pension Calculation Factors: The normal retirement pension at Entergy Nuclear Operations, Inc. is calculated using a formula based on Average Earnings and years of Benefit Service. The formula includes percentages of earnings, capped at certain limits, and service years to determine the monthly pension benefit under Appendix G(Entergy_Nuclear_Operati…).
What unique considerations should employees of Entergy Nuclear Operations, Inc. keep in mind regarding service credits, particularly if they have accrued time under a prior employer's defined benefit plan?
Service Credits for Prior Employers: Employees with service under a prior employer's defined benefit plan may have their service credited toward the pension plan at Entergy Nuclear Operations, Inc. This includes specific provisions for employees from companies like Vermont Yankee. Service credits from prior employers may affect both vesting and benefit calculations(Entergy_Nuclear_Operati…).
How does Entergy Nuclear Operations, Inc. handle the transition of employees who transfer from covered employment with the potential for pension benefits, and what impact does this have on their accrued service time?
Impact of Employee Transfers on Pensions: If an employee transfers from covered employment (i.e., eligible for the pension plan) to a position not covered by the plan, their Benefit Service is frozen. However, Vesting Service continues to accrue as long as the employee remains with the company, and previous service may impact final pension benefits(Entergy_Nuclear_Operati…).
What specific contact methods are available for employees of Entergy Nuclear Operations, Inc. to reach the Entergy Pension Resource Center for assistance regarding their pension benefits, and what type of inquiries can the center effectively handle?
Contacting the Entergy Pension Resource Center: Employees can contact the Entergy Pension Resource Center (EPRC) for assistance with their pension benefits via phone at 1-855-523-3772 or online at EPRC Website. Inquiries can include questions about benefits, beneficiary designations, and how to commence pension payments(Entergy_Nuclear_Operati…).
In what scenarios might an employee's pension benefits at Entergy Nuclear Operations, Inc. be suspended, and what steps can be taken to appeal or rectify such situations once they occur?
Suspension of Pension Benefits: Pension benefits may be suspended if an employee is rehired after retirement and works more than 40 hours in a month. Employees who experience benefit suspensions can have their pension recalculated upon final retirement, with offsets for any benefits previously received(Entergy_Nuclear_Operati…).