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Healthcare Provider Update: Healthcare Provider for ConocoPhillips ConocoPhillips provides its employees with access to various healthcare plans through third-party providers, primarily offering services via large insurers such as Blue Cross Blue Shield and UnitedHealthcare. These plans typically include comprehensive medical, vision, and dental coverage tailored to meet the diverse needs of its workforce. Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, ConocoPhillips employees can expect significant premium hikes in 2026, driven by a perfect storm of factors impacting the Affordable Care Act (ACA) marketplace. With anticipated increases exceeding 60% in some states and the potential expiration of federal premium subsidies, many employees could face out-of-pocket costs soaring by up to 75%, compounding the financial pressure. The ongoing upward trend in medical costs, coupled with employers' shifts in cost-sharing strategies, may further challenge employees as they navigate rising healthcare expenses. Planning ahead and understanding these dynamics is crucial for effective budgeting and healthcare management in the coming years. Click here to learn more
'With the 2026 Social Security COLA set to increase income for many ConocoPhillips employees in retirement, thoughtful coordination of benefits and withdrawals is essential, as rising income can also elevate tax exposure.' —Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.
'While the Social Security COLA boost may offer added income for ConocoPhillips employees entering retirement, it’s important to plan carefully, as higher benefits can also raise taxable income over time.'—Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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How the 2026 Social Security cost-of-living adjustment (COLA) impacts ConocoPhillips retirees.
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Tax implications of higher Social Security benefits and ways to manage them.
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Timing strategies for Social Security benefits and available deductions for retirees.
What ConocoPhillips Retirees Need to Know About Social Security COLA 2026
The Social Security cost-of-living adjustment (COLA) for 2026 is set at 2.8%, slightly higher than the previous year’s 2.5% increase. 1 This annual COLA, announced by the Social Security Administration (SSA) in October and applied to January benefits, helps retirees maintain purchasing power during inflationary periods. For ConocoPhillips employees nearing or in retirement, this adjustment can play a key role in income planning.
According to the Bureau of Labor Statistics, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)—which determines COLA—increased 3% over the 12 months ending September 2025. 2
While this is lower than the 8.7% increase in 2023, 3 it may still offer meaningful relief to ConocoPhillips retirees experiencing higher living expenses.
How Higher Benefits Could Affect Taxes
As Social Security benefits rise, your combined (or “provisional”) income may increase, which can cause a greater portion of your benefits to be taxed. Combined income includes wages, pensions, interest, dividends, taxable withdrawals from traditional 401(k)s or IRAs, non-taxable interest, and half of your Social Security benefits.
For single filers with income below $25,000 and joint filers below $32,000, Social Security benefits are not taxed. Between $25,000 and $34,000 for single filers and $32,000 and $44,000 for joint filers, up to 50% of benefits may be taxable. Income above those ranges can result in up to 85% of benefits being taxable. 3 These income thresholds are not adjusted for inflation, which means ConocoPhillips retirees may experience increased taxation over time as income rises.
Withdrawals from traditional ConocoPhillips retirement plans, such as 401(k)s and IRAs, are treated as ordinary income and can increase the taxable portion of Social Security benefits. Thoughtful timing of withdrawals may help manage tax exposure.
Strategies to Manage Tax Impact
If rising taxes are a concern, the following strategies may help:
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Balance withdrawals across account types. Coordinating distributions from tax-deferred, taxable, and Roth accounts may help you meet required minimum distribution (RMD) rules while managing your tax bracket.
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Use taxable accounts strategically. Only capital gains—not your initial investment—are taxable.
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Consider tax-free withdrawals. Qualified distributions from Roth IRAs, Roth 401(k)s, or Health Savings Accounts (HSAs) are not included in taxable income and do not affect Social Security taxation.
New Senior Tax Deduction: 2025–2028
Beginning in 2025, a new senior deduction of $6,000 per person ($12,000 for joint filers) will be available to taxpayers age 65 and older. This deduction phases out at $75,000 adjusted gross income (AGI) for single filers and $150,000 for joint filers.
This deduction is in addition to the age-65+ standard deduction increase of $2,000 for single filers and $1,600 per eligible spouse for joint filers in 2025. ConocoPhillips retirees may wish to include this in long-term tax planning.
Timing Your Social Security Benefits
Delaying Social Security until full retirement age (67) or up to age 70 generally results in higher lifetime benefits. Benefits increase by about 8% for each year you delay claiming between your full retirement age and age 70.
For ConocoPhillips retirees, delaying benefits may provide additional flexibility in coordinating income from pensions, savings, or retiree medical accounts.
Social Security provides inflation-adjusted income for life, which may contribute to financial stability when aligned with corporate retirement benefits.
Keep the Big Picture in Mind
While the 2026 COLA helps counter rising costs, it can also raise taxable income for some retirees. Thoughtful planning around withdrawals, deductions, and timing of benefits can help manage long-term taxes. Because tax laws are complex, developing a multi-year strategy with a financial advisor is recommended.
The Retirement Group can help ConocoPhillips employees explore Social Security strategies, tax-focused withdrawal planning, and retirement income coordination. For more information, call The Retirement Group at (800) 900-5867 .
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Sources:
1. Social Security Administration. Social Security Announces 2.8 Percent Benefit Increase for 2026 . U.S. Government, 24 Oct. 2025, https://www.ssa.gov/news/en/press/releases/2025-10-24.html .
2. Bureau of Labor Statistics. ' Consumer Price Index Summary ,' September 2025.
3. Markowitz, Andy. “Why Social Security COLAs Can Increase Your Taxes.” AARP , 6 Feb. 2024, updated 10 Feb. 2025, https://www.aarp.org/social-security/benefits-taxes-cola/ .
How does the retirement process at ConocoPhillips provide guidance to employees in selecting the most beneficial form of payment? In what ways can employees utilize available resources to maximize their understanding of the pension options offered by ConocoPhillips?
The retirement process at ConocoPhillips provides employees with various resources to guide them in selecting the most beneficial form of pension payment. Employees can access the "How to Choose the Best Form of Payment" link on Your Benefits Resources™ (YBR) to learn more about their options and determine what works best for their financial situation(ConocoPhillips_Your_Ret…).
What steps must be completed by employees at ConocoPhillips to ensure they initiate their retirement process accurately and avoid any delays? How crucial is the timing of these steps in determining the Benefit Commencement Date (BCD)?
Employees at ConocoPhillips must initiate the retirement process by requesting their pension paperwork 60-90 days before their Benefit Commencement Date (BCD). Timing is crucial, as missing deadlines may delay the BCD and associated payments. Completing all steps on time ensures that the retirement process flows smoothly(ConocoPhillips_Your_Ret…).
Given the complexities associated with the lump-sum pension payment option at ConocoPhillips, what considerations should employees take into account before electing this choice? How does the current interest rate at the Benefit Commencement Date impact the lump-sum amount?
Before electing a lump-sum pension payment, ConocoPhillips employees should consider the current interest rate at their BCD, as it directly affects the lump-sum amount. A higher interest rate typically reduces the lump-sum payment, making timing and rate awareness critical(ConocoPhillips_Your_Ret…).
In what ways can ConocoPhillips employees ensure their Pension Election Authorization form is completed correctly to facilitate timely pension payments? What are the implications of not adhering to the required notarized consent for married participants?
Ensuring the correct completion of the Pension Election Authorization form is vital for timely pension payments. For married participants, notarized spousal consent is required, and failure to provide this could result in delays or issues with payment processing(ConocoPhillips_Your_Ret…).
How does choosing direct deposit for pension payments at ConocoPhillips streamline the retirement process for employees? What should employees know about setup and changes regarding direct deposit after initiating their pension benefits?
Choosing direct deposit for pension payments simplifies the process for employees at ConocoPhillips, as it enables automatic payments to their bank account. Employees can set up direct deposit during their retirement process or update it at a later time(ConocoPhillips_Your_Ret…).
For employees considering rolling over their lump-sum pension payment from ConocoPhillips, what procedures should they follow to ensure compliance with IRS regulations and to avoid tax penalties? How can effective planning influence the success of this rollover?
Employees electing to roll over their lump-sum pension payment must follow specific IRS regulations to avoid tax penalties. Effective planning, such as obtaining rollover paperwork and adhering to IRS rules, ensures compliance and smooth fund transfer(ConocoPhillips_Your_Ret…).
What resources does ConocoPhillips provide for employees to calculate and project their retirement income? How can these tools empower employees to make informed decisions regarding their future financial security?
ConocoPhillips provides employees with tools such as the "Project Retirement Income" feature on YBR, empowering them to calculate and project their retirement income. These resources help employees make informed decisions about their financial future(ConocoPhillips_Your_Ret…).
How do deadlines play a pivotal role in the benefits process for retiring employees at ConocoPhillips, and what specific dates must be adhered to in order to avoid payment delays? Can you provide examples of consequences resulting from missed deadlines?
Deadlines are critical in ConocoPhillips' retirement process, as missing them can delay pension payments. For example, requesting pension paperwork after the 15th of the month can delay the BCD by a month, affecting the pension payout date(ConocoPhillips_Your_Ret…).
What are the added advantages for employees at ConocoPhillips who actively seek assistance or information from the Benefits Center during their retirement planning? How can this proactive approach enhance their overall retirement experience?
Employees who seek assistance from the Benefits Center during their retirement planning benefit from personalized guidance. This proactive approach ensures that they fully understand their options and deadlines, enhancing their overall retirement experience(ConocoPhillips_Your_Ret…).
How can employees at ConocoPhillips contact the Benefits Center to receive personalized assistance in navigating their retirement options? What specific resources and support can they expect when reaching out for help?
ConocoPhillips employees can contact the Benefits Center by calling 800-622-5501 or accessing YBR online. The Benefits Center provides personalized assistance and guidance, helping employees navigate their pension options effectively(ConocoPhillips_Your_Ret…).
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