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

Kraft Retirement Planning: Preparing for Rising Health Care Costs and Longer Lifespans

Healthcare Provider Update: Healthcare Provider for Kraft Kraft Heinz Company primarily offers its employees a healthcare plan through the Aon Health Solutions, which oversees benefits and health resources for the company. As a sizable employer, Kraft provides a variety of health plans, typically including comprehensive medical, dental, and vision coverage. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are anticipated to surge significantly for Kraft employees, paralleling broader trends across the Affordable Care Act (ACA) marketplace. With health insurance premiums projected to increase by an average of 18%-and in some states exceeding 60% due to the potential expiration of enhanced federal premium subsidies-many workers could face a financial burden. This perfect storm of rising medical costs and shifting insurance policies signals an increase in out-of-pocket expenses, revealing the critical need for strategic planning among employees to manage their healthcare finances effectively. Click here to learn more

'With longer life expectancies and 25–35 year retirement horizons becoming more common, Kraft 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, Kraft 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:

How increasing longevity is reshaping retirement timelines for Kraft employees.
Structural shifts in pensions, inflation, health care, and Social Security.
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 Kraft 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 Kraft 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 Kraft 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 Kraft 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 Kraft 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 Kraft 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 Kraft 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 Kraft employees may include:

- Social Security
- Pension income
- Investment withdrawals
- Part-time work
- 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 Kraft employees, phased retirement or part-time work may ease the transition and extend earning years.

The Bottom Line for Kraft 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 Kraft 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 .'

How does the pension plan offered by Kraft Foods Global, Inc. compare to standard retirement plans in terms of employer contribution allocation, and what specific policies should employees be aware of when considering their retirement options through Kraft Foods Global, Inc.?

Kraft Foods Global, Inc. Pension Plan vs. Standard Retirement Plans: The pension plan offered by Kraft Foods Global, Inc. operates as a defined benefit plan, which allocates employer contributions based on years of service and compensation, ensuring steady retirement income based on a formula. This contrasts with standard retirement plans like 401(k)s, where contributions are often employee-driven and subject to market performance. Employees should understand that the guaranteed nature of a pension provides long-term stability, but they must consider the plan’s specific terms regarding eligibility, vesting, and distribution options.

In what ways do the eligibility requirements for contributions to the retirement plans at Kraft Foods Global, Inc. align with IRS regulations for 2024, and what should employees know about these rules when planning their retirement funds?

Eligibility and IRS Regulations for 2024: The eligibility requirements for Kraft Foods Global, Inc.’s retirement plan align with IRS regulations by requiring one year of service for plan participation, with no minimum age requirement. This is typical for defined benefit plans and is in line with IRS standards for qualified plans. Employees planning their retirement funds should ensure they meet the service requirements and understand that contributions are employer-funded rather than employee-driven, unlike other retirement plans that follow IRS contribution limits(Kraft Foods Global Inc_…).

Considering the defined benefit plan structure of Kraft Foods Global, Inc., how are distributions processed at retirement, and what potential tax implications should employees consider when deciding between a lump sum or annuity option upon retirement?

Distribution Options and Tax Implications: Kraft Foods Global, Inc.’s defined benefit plan offers both lump sum and annuity options for retirement distributions. Employees must carefully consider tax implications: lump sums may be subject to immediate taxation, while annuity payments spread income over time, potentially offering tax advantages. Employees should evaluate their financial needs and tax situation to choose the most suitable option for their retirement(Kraft Foods Global Inc_…).

How does Kraft Foods Global, Inc. ensure the stability and sustainability of its retirement funds, known as the retirement plan funding levels, and what measures are in place to protect employees' interests in case of economic downturns?

Retirement Plan Stability and Economic Downturns: Kraft Foods Global, Inc. ensures the stability and sustainability of its retirement funds through a well-funded pension plan, with funding levels reported at over 100%. This level of funding offers protection against economic downturns, safeguarding employee interests. The company also maintains a significant fidelity bond, providing additional security for plan participants in case of adverse financial events(Kraft Foods Global Inc_…).

What resources are available to employees of Kraft Foods Global, Inc. for financial planning assistance related to their retirement, and how can knowledge of these resources influence their decisions regarding retirement savings and benefits?

Financial Planning Resources: Employees of Kraft Foods Global, Inc. have access to various resources, such as retirement plan summaries and consultations with financial planners. These tools can help employees make informed decisions regarding their retirement savings and benefits, potentially influencing their strategies for maximizing contributions and taking advantage of plan features like early retirement options(Kraft Foods Global Inc_…).

How should employees at Kraft Foods Global, Inc. approach the process for requesting a distribution from their retirement plan, and what specific information is required to expedite this process effectively?

Requesting a Distribution: Employees at Kraft Foods Global, Inc. must contact the plan administrator to request a distribution. Providing accurate personal information, retirement dates, and preferred payment methods is essential to expedite the process. It’s crucial to ensure that all documentation is complete to avoid delays(Kraft Foods Global Inc_…).

How does the participation in the additional retirement plans offered by Kraft Foods Global, Inc., such as the Thrift Investment Plan, benefit employees in the context of overall retirement savings and IRS contribution limits for 2024?

Additional Retirement Plans and IRS Contribution Limits: Participation in Kraft Foods Global, Inc.’s Thrift Investment Plan allows employees to enhance their retirement savings while adhering to IRS contribution limits for 2024. This plan complements the pension plan by offering a defined contribution option, giving employees the chance to maximize their overall retirement savings through a combination of employer contributions and personal investments(Kraft Foods Global Inc_…).

What communication channels does Kraft Foods Global, Inc. provide for employees to ask questions or seek clarification regarding their retirement benefits, and what should employees include in their inquiries to receive detailed answers?

Communication Channels for Retirement Benefits: Kraft Foods Global, Inc. provides clear communication channels through its HR department and plan administrators, where employees can ask detailed questions about their retirement benefits. It’s advisable for employees to include specific details in their inquiries, such as their years of service and expected retirement dates, to receive thorough responses(Kraft Foods Global Inc_…).

How do the overall retirement plan offerings at Kraft Foods Global, Inc. facilitate long-term financial security for employees compared to industry standards, and what unique features should employees leverage to maximize their retirement savings?

Maximizing Long-Term Financial Security: The retirement plan offerings at Kraft Foods Global, Inc. focus on long-term financial security by providing guaranteed income through its defined benefit structure. Compared to industry standards, this approach offers employees a more predictable and stable source of retirement income. Employees should leverage features like early retirement options and understand their full benefit potential to optimize their financial outcomes(Kraft Foods Global Inc_…).

What strategies should employees at Kraft Foods Global, Inc. employ to ensure they remain informed about ongoing changes in retirement planning regulations and plan offerings as they approach retirement, especially in light of any adjustments to IRS rules or company policies?

Staying Informed on Retirement Plan Changes: Employees should stay informed about ongoing changes in retirement planning regulations and company policies by regularly reviewing updates from Kraft Foods Global, Inc. and keeping track of IRS adjustments. Attending company-provided financial planning seminars and consulting with financial advisors can help ensure that employees are well-prepared for retirement, especially as IRS rules or plan offerings evolve(Kraft Foods Global Inc_…).

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

Kraft Heinz offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan features company matching contributions and various investment options, including target-date funds and mutual funds. Kraft Heinz provides financial planning resources and tools to help employees manage their retirement savings.

Kraft Heinz is undergoing a major restructuring in 2024, including layoffs and changes to its employee benefits to improve cost efficiency. The company continues to focus on its core food and beverage businesses. Understanding these changes is crucial in today's economic and business landscape, as they impact the company's strategic priorities and financial health.

Kraft Heinz includes RSUs in its employee compensation packages, which vest over a specific period and convert into shares. Stock options are also provided, enabling employees to purchase shares at a predetermined price.