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Healthcare Provider Update: FedEx's healthcare provider is primarily Cigna, which partners with the company to offer health insurance solutions to its employees through a range of plans, including High Deductible Health Plans paired with Health Savings Accounts. In 2026, FedEx employees may face significant healthcare cost increases, mirroring a broader trend across the nation. With the expected elimination of enhanced ACA premium subsidies, some workers could see their out-of-pocket premium costs surge by over 75%. Coupled with the anticipated double-digit rate hikes from major insurers and rising medical expenses, the financial burden on employees is poised to escalate sharply, potentially impacting their overall healthcare affordability. Click here to learn more
'With longer life expectancies and 25–35 year retirement horizons becoming more common, FedEx employees should regularly revisit their income, Social Security timing, and withdrawal strategies to build flexibility into their plans and account for inflation, health care costs, and market cycles,' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.
'As retirement timelines stretch to 25–35 years, FedEx employees should view longevity, inflation, and sequence-of-returns risk not as abstract concepts but as planning variables that require flexibility, disciplined income coordination, and periodic review,' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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How increasing longevity is reshaping retirement timelines for FedEx employees.
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Structural shifts in pensions, inflation, health care, and Social Security.
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Practical strategies to adapt retirement income planning for 25–35 year retirements.
by Neva Bradley, CFP®, Wealth Enhancement
For many years, retirement planning often assumed a post-career life of a few decades, with retirement occurring around age 65. For long-tenured FedEx employees, that traditional model may no longer fully reflect today’s realities.
Longevity data underscores the importance of flexibility in planning.
In 2024, average life expectancy in the United States at birth was 79 years, with women living 81.4 years and men 76.5 years, according to the Centers for Disease Control and Prevention (CDC). 1
These figures reflect national birth averages.
However, planning solely around averages can be misleading. By definition, roughly half of individuals will live beyond the midpoint. Depending on retirement age and personal longevity, retirement for many FedEx employees may extend 25 to 35 years.
That extended time horizon may increase exposure to key retirement risks.
Revisiting Retirement Assumptions
Today’s retirement landscape looks different than it did for previous generations of FedEx employees.
- Defined benefit pensions are considerably less common in the private sector. As of September 2025, only about 14% of private sector workers have access to a defined benefit plan, according to the Bureau of Labor Statistics. 2
- Over extended periods, medical costs have generally risen faster than overall consumer prices. 3 While Medicare provides meaningful coverage, it does not include most long-term care services or many dental services.
- In June 2022, inflation reached 9.1% year over year—the largest 12-month increase since 1981, according to the Bureau of Labor Statistics. 4 While headline inflation has since waned, even modest shifts in inflation, health care expenses, and market performance can materially affect outcomes over multi-decade retirements.
For FedEx employees planning a retirement that could span three decades, these factors deserve careful evaluation.
Understanding Longevity Risk
Longevity risk refers to the possibility of outliving one’s financial resources.
The longer retirement lasts, the greater the exposure to market cycles, inflation, and health care costs. Sequence-of-returns risk— the impact of market declines early in retirement while withdrawals are occurring—can significantly influence long-term portfolio durability.
Retirement strategies for FedEx employees should account for these variables, particularly given potentially long retirement timelines.
How Retirement Planning Can Adapt
1. Plan for a Range of Ages
Rather than planning to a single life expectancy figure, stress-testing retirement scenarios to age 90 or 95 can add resilience. For FedEx households, building in flexibility helps account for longer lifespans.
2. Reevaluate Withdrawal Strategies
While the traditional 4% guideline was based on a 30-year retirement horizon, it failed to take inflationary pressures and sequence-of-return risk into account. Withdrawal strategies that consider spending flexibility during varying market conditions may support long-term sustainability.
3. Consider Social Security Timing
Delaying Social Security beyond full retirement age increases benefits through delayed retirement credits up to age 70. 5 For some FedEx employees concerned about longevity risk, higher lifetime income from Social Security may strengthen long-term cash flow stability
4. Maintain Balanced Allocation
While risk management remains essential, maintaining exposure to growth-oriented assets may help retirement savings keep pace with inflation across extended retirement periods.
5. Layer Multiple Income Sources
Retirement income for FedEx employees may include:
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- Social Security
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- Pension income
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- Investment withdrawals
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- Part-time work
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- Annuity income
Diversifying income streams can help reduce reliance on any single source.
If You’re Already Retired
Adjustments remain possible. Reviewing spending habits, withdrawal strategies, investment positioning, and health care planning can help align financial resources with the expected duration of retirement.
Decisions such as reducing discretionary expenses or downsizing can be practical planning strategies.
If You’re Still Employed
Consistency is key. Ongoing savings, appropriate investment exposure, and planning for income flexibility can support long-term durability. For some FedEx employees, phased retirement or part-time work may ease the transition and extend earning years.
The Bottom Line for FedEx Employees
Life expectancy remains higher than historical norms, and many retirees face retirement horizons of 25 to 35 years. Over longer retirements, inflation, health care costs, market volatility, and longevity risk carry greater weight.
Modern retirement planning emphasizes flexibility—layering income sources, adjusting withdrawals, maintaining diversified growth exposure, and preparing for a range of outcomes.
The Retirement Group works with FedEx employees to stress-test retirement strategies, evaluate longevity risk, and assess income alternatives. To discuss your retirement planning needs, call The Retirement Group at (800) 900-5867.
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Sources:
1. Centers for Disease Control and Prevention, National Center for Health Statistics. ' Mortality in the United States, 2024 ,' by J. Xu, S. Murphy, K. Kochanex, E. Arias. NCHS Brief No. 548, January 2026.
2. U.S. Bureau of Labor Statistics. ' Employee Benefits in the United States .' March 2025.
3. Rakshit, Shameek, et al. “How Does Medical Inflation Compare to Inflation in the Rest of the Economy?” Peterson-KFF Health System Tracker , Kaiser Family Foundation, 2 Aug. 2024, www.healthsystemtracker.org/brief/how-does-medical-inflation-compare-to-inflation-in-the-rest-of-the-economy/ .
4. U.S. Bureau of Labor Statistics. Consumer Price Index—June 2022 . U.S. Department of Labor, 13 July 2022, www.dol.gov/newsroom/economicdata/cpi_07132022.pdf .
5. Social Security Administration. ' Delayed Retirement Credits .'
What are the implications of the Funding Target Attainment Percentage for FedEx Corporation employees, and how does it impact the security of the pension benefits offered by FedEx Corporation? This question seeks to explore the nuances of the funding target attainment percentage as reported in the annual funding notice, examining how this metric not only reflects the financial health of FedEx Corporation's pension plan but also how it affects employee confidence in future benefit payments and retirement planning.
Funding Target Attainment Percentage: The Funding Target Attainment Percentage for FedEx Corporation indicates the degree to which the pension plan is funded. A percentage of 101.33% for 2022 suggests that the plan has sufficient assets to cover its liabilities, providing security for employees' pension benefits. This high percentage likely increases employee confidence in the stability and reliability of their future pension payouts, essential for long-term retirement planning.
How does the merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan influence the benefits currently available to FedEx Corporation employees? This question aims to delve into the practical changes that may arise due to this merger, assessing whether it aligns with employee expectations regarding their pension benefits and how the transition process is managed by FedEx Corporation.
Merger of Pension Plans: The merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan appears to have been strategically managed to maintain benefit stability. Despite increasing liabilities by 5.3%, the merger was structured to ensure no negative impact on the benefit amounts payable to participants from either plan, preserving the expected pension benefits for all affected FedEx Corporation employees.
In terms of investment strategies, what measures does FedEx Corporation implement to ensure that its pension plan investments align with the long-term liabilities expected to be paid out to retirees? This question encourages an exploration of the investment policies in place, examining the asset allocations and risk management strategies that FedEx Corporation employs to ensure sustainable funding for its pension obligations, which could potentially include detailed analyses of stocks, debts, and alternative investments.
Investment Strategies: FedEx Corporation employs a diversified investment strategy across equities, fixed income, and alternative investments, aiming to meet long-term pension liabilities. This approach, which includes both active management strategies and the limited use of derivatives, is designed to generate returns that exceed market indices, thus ensuring adequate funding of pension obligations.
What options do employees of FedEx Corporation have for accessing their pension plan statements, and how frequently are these statements generated? The focus here is to understand the communication strategies employed by FedEx Corporation regarding pension benefit statements, including technological access points and the importance of these documents for employee financial planning.
Pension Plan Statements: FedEx Corporation provides annual pension plan statements through their Retirement Service Center, available electronically each fall. Employees can access their statements online or request them if notifications are not received, ensuring transparency and aiding in personal financial planning.
How are contributions to the FedEx Corporation Employees’ Pension Plan determined, and what role do excess contributions play in the plan's overall funding strategy? This question aims to educate employees about how the company balances mandatory contribution levels with potential excess contributions, exploring how these factors interact to influence the plan's solvency and employee benefits.
Contributions to the Pension Plan: Contributions to the FedEx Corporation Employees' Pension Plan are calculated to meet at least the minimum legal requirement and potentially include voluntary excess contributions. These excess contributions can help manage the plan's funding level and ensure its solvency, benefiting overall pension security for employees.
What types of benefits are guaranteed under the Pension Benefit Guaranty Corporation (PBGC) for FedEx Corporation employees, and what limitations exist that employees should be aware of? By focusing on the guaranteed benefits, this question prompts a discussion on the security of specific benefits provided by FedEx Corporation and highlights limitations, allowing employees to understand their rights fully.
PBGC Guarantee: The Pension Benefit Guaranty Corporation guarantees certain types of benefits for FedEx Corporation employees, such as pension benefits at normal retirement age and most early retirement benefits. However, there are limitations, such as exclusions for benefits without vested rights and recently increased benefits, which employees should be aware of to fully understand their pension security.
In what ways does the FedEx Corporation plan to adjust its pension funding strategy in light of changing federal laws that impact pension obligations? Employees are encouraged to consider how legislative changes influence corporate policies surrounding retirement benefits and the proactive strategies FedEx Corporation might take to remain compliant while ensuring the security of employee pensions.
Adjustments to Funding Strategy: FedEx Corporation is likely to adjust its pension funding strategy in response to legislative changes affecting pension obligations, such as those introduced by recent acts adjusting how pension liabilities are calculated. This proactive approach aims to ensure compliance with new laws while continuing to secure the financial health of the pension plan.
What are the steps that FedEx Corporation employees must take if they are considering retirement, particularly in how to navigate the pension plan and gain access to their benefits? This question aims to provide clarity on the retirement process, ensuring that employees are equipped with the necessary information regarding required documentation, timelines, and points of contact within FedEx Corporation.
Steps for Retirement Planning: Employees considering retirement should contact the FedEx Retirement Service Center to navigate their pension plan benefits. This process involves understanding necessary documentation, timelines, and available support, facilitating a smooth transition into retirement.
How does FedEx Corporation plan to manage potential funding shortfalls in the pension plan, and what mechanisms are in place for notifying plan participants should such an event occur? Employees would need to understand the proactive measures put in place by FedEx Corporation to address funding-related challenges while also knowing what this means for their benefits.
Managing Funding Shortfalls: In the event of potential funding shortfalls, FedEx Corporation has policies in place to manage such situations, including strategic contributions to mitigate shortfalls. The company maintains transparency with plan participants about funding levels and any significant changes affecting the pension plan.
For those seeking more information about their pensions and retirement options, how can FedEx Corporation employees contact relevant departments, and what resources are available for assistance? This question provides an opportunity for employees to familiarize themselves with contact points such as the FedEx Retirement Service Center, emphasizing the importance of open communication channels for addressing inquiries related to their pensions. Feel free to consult the provided document for more in-depth exploration of these topics.
Contacting for Pension Information: FedEx Corporation employees seeking more information about their pensions or retirement options can contact the FedEx Retirement Service Center. This center provides essential resources and support, ensuring employees have access to all necessary information regarding their retirement planning.
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