Navigating Market Crosscurrents: What Recent Trends May Mean for PG&E Employees

Healthcare Provider Update: Healthcare Provider for Pacific Gas & Electric The primary healthcare provider for employees of Pacific Gas and Electric (PG&E) is often covered under large insurance carriers that offer comprehensive plans, including offerings from Blue Cross Blue Shield and UnitedHealthcare; the exact provider may vary depending on the employee's specific plan and regional options available. Projected Healthcare Cost Increases in 2026 As we look ahead to 2026, healthcare costs are anticipated to rise significantly due to a combination of factors. Insurers are reporting average premium increases that could exceed 20%, driven largely by ongoing inflation in healthcare services and the potential expiration of enhanced subsidies provided under the Affordable Care Act. This perfect storm of rising medical costs and diminished financial support could shock many consumers, with estimates suggesting that out-of-pocket premiums might surge by as much as 75% for individuals reliant on marketplace plans. As such, both employees and employers within PG&E should prepare for heightened expenses, taking proactive steps now to mitigate potential financial impacts. Click here to learn more

“Periods of shifting interest rates, inflation pressures, and global market movements underscore the importance for PG&E employees to regularly revisit how these factors may fit into long-term retirement planning conversations,” — Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

“Understanding how evolving market conditions, interest rates, and economic trends interact over time can help PG&E employees frame more informed retirement planning discussions,” — Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will look at:

1. Recent U.S. equity market performance and key Federal Reserve policy actions during the fourth quarter of 2025.

2. Ongoing economic conditions, including inflation trends, interest rates, and consumer sentiment.

3. How market, currency, and economic developments can play a role in retirement planning considerations for PG&E employees.

U.S. equity markets finished the fourth quarter of 2025 higher than Q3, with the S&P 500 Index rising 2.7% for the quarter, ¹  marking an 18% year-over-year increase. ²  Notable outperformers included health care, financial, industrial, and utility stocks. ²  For their part, value stocks outperformed growth stocks for the quarter, with the Russell 1000 Value Index rising 3.8% compared with a 1.1% increase for the Russell 1000 Growth Index. ¹

Despite these positive returns, ongoing job market concerns and persistent inflation prompted the Federal Reserve to continue lowering interest rates. ³  For PG&E employees nearing retirement, this could affect fixed income yields.

That said, long-term interest rates stayed relatively high for the year. 30-year U.S. Treasury yields were around 4.83% toward late 2025, and 10-year yields hovered near 4.2% at the end of the fourth quarter. ⁴  These movements reflected influences from labor market conditions, policy adjustments, and inflation conditions that may enter into planning considerations for PG&E employees.

Economic and Inflation Conditions

Inflation remained above the Federal Reserve’s 2% benchmark target over much of 2025, ⁵  with housing and services costs continuing to show resistance to downward movement. After a prolonged period of subdued inflation for goods, tariffs contributed upward pressure on certain prices in the second half of 2025, ⁶  adding another dynamic that many people watch closely as part of how broader economic trends shift.

Consumer sentiment in the U.S. weakened notably in the second half of 2025 based on widely followed surveys. ⁷  While higher-income households supported a degree of spending strength, overall consumer spending trended downward in the fourth quarter, with indicators suggesting a fall in planned discretionary spending. For many PG&E employees, these trends can create uncertainty around retirement readiness.

Currency and Asset Markets

Most major asset classes finished 2025 with positive results. Precious metals such as gold delivered notably strong performance, while equities outside the U.S. also recorded gains in the fourth quarter and for the full year ¹ —developments often considered by PG&E employees reviewing global market conditions.

In currency markets, the U.S. dollar weakened over the calendar year, ⁸  with numerous financial commentaries pointing to declining dollar strength against a broad set of currencies throughout 2025. Periods of dollar weakness have coincided historically with comparatively stronger performance for many non-U.S. equities, a pattern that may be of interest to employees evaluating broad market exposure.

Support for Retirement Planning Considerations

Market dynamics, inflation trends, interest rates, and currency movements all play roles in retirement income planning, constructing portfolios, and decisions with long-term horizon implications. Understanding how these different forces interact can be especially relevant for PG&E employees approaching or shifting into retirement.

The Retirement Group can help you better understand how changing market conditions may influence your retirement planning choices. To speak with a representative, call (800) 900-5867.

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Sources:

1. Mesirow.  4Q 2025 Market Summary . Mesirow Financial, 2026. Accessed 3 Feb. 2026. 

2. Schroders. ' Quarterly markets review - Q4 2025 .' Jan. 6, 2026.

3. U.S. Bank. ' Federal Reserve calibrates interest rate policy amid softer hiring and lingering inflation .' Jan. 30, 2026.

4. YCharts. ' 30 Year Treasury Rate .' 2026.

5. Federal Open Market Committee.  Federal Reserve Issues FOMC Statement . Federal Reserve, 29 Oct. 2025,  www.federalreserve.gov/monetarypolicy/files/monetary20251029a1.pdf . Accessed 3 Feb. 2026. 

6. Board of Governors of the Federal Reserve System. ' The Slow Climb: How Tariffs Gradually Raised Retail Prices in 2025 ,' by Sinem Hacioglu-Hoke et al. Mar 5, 2026.

7. Bloomberg. ' US Consumer Sentiment Declines to Near Lowest on Record .' Nov. 7, 2025.

8. The Guardian. ' US dollar sinks to its lowest level in four years ,' by Joanna Partridge. Jan. 28, 2026.