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Healthcare Provider Update: Healthcare Provider for Occidental Petroleum Occidental Petroleum collaborates with Lyra Health to provide enhanced mental health benefits. This partnership offers employees access to cost-free mental and emotional healthcare, focusing on making effective services convenient and accessible. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs for employees at Occidental Petroleum are expected to rise significantly due to various market pressures. A recent forecast indicates an overall increase of approximately 8.5% in healthcare spending, driven by rising hospital and health system operating costs, along with increased demand for behavioral health services. Additionally, if enhanced federal premium subsidies for ACA marketplace plans are allowed to expire, many employees could face drastic hikes in their out-of-pocket costs. This scenario underscores the need for proactive planning and strategic adjustments in employee healthcare benefits amid a shifting economic landscape. Click here to learn more
“Occidental Petroleum employees evaluating downsizing should view strategies like assumable mortgages not simply as real estate decisions, but as part of a coordinated retirement income and liquidity plan that weighs cash flow, long-term flexibility, and estate considerations within their broader financial picture.” – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
“Occidental Petroleum employees approaching retirement should evaluate housing transitions such as assumable mortgages through the lens of overall retirement cash flow, liquidity, and long-term planning priorities, rather than viewing the mortgage decision in isolation.” – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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How shifting mortgage rates may influence downsizing decisions for Occidental Petroleum employees.
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What an assumable mortgage is and how it works.
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Key financial and strategic considerations when evaluating a move in retirement.
by Neva Bradley, CFP®, Wealth Enhancement
If you’re a Occidental Petroleum employee and part of the Baby Boomer generation, your home may feel very different today than it did 20 years ago.
Children’s bedrooms may now serve as guest rooms. The formal dining room might only see use during the holidays. The yard may feature more maintenance than enjoyment. Even if you love the house, it may simply feel larger than you need at this stage of life.
At the same time, many younger families are living in homes that feel too small.
Mortgage rates were historically low in 2020 and 2021. In the first half of 2021, the 30-year fixed-rate mortgage averaged roughly 2.9%, with periods dipping below 3%, according to Freddie Mac. 1
More recently, average rates have been noticeably higher—something Occidental Petroleum employees considering a move have likely observed.
Because of this shift in the rate environment, many retirees may not have considered a strategy that could still be relevant today.
It’s called an assumable mortgage.
An Assumable Mortgage: What Is It?
Subject to program regulations and buyer approval, an assumable mortgage allows a buyer to take over a seller’s existing loan—including the original interest rate.
That means instead of applying for a brand-new mortgage at today’s higher rates, a buyer may be able to step into a prior low-rate loan, if the loan qualifies. For Occidental Petroleum employees planning to downsize, this can be significant.
Instead of selling your larger home, purchasing a smaller property, and taking on a new mortgage at current market rates, you may be able to sell your larger home, downsize your living space, and assume an existing lower-rate mortgage, if eligible.
That interest rate difference can meaningfully impact monthly cash flow.
Why This May Appeal to Some Retirees
For many retirees, being completely mortgage-free is not the only objective.
- They value liquidity.
- They want flexibility.
- They prefer to keep investable assets working.
Carrying a mortgage below 4%—or even below 3%—while maintaining invested capital can be a deliberate allocation decision, particularly when considering inflation and long-term return expectations. For long-tenured Occidental Petroleum employees with substantial home equity and retirement savings, this can become part of a broader strategy discussion.
Taking on a significantly higher-rate mortgage when a lower-rate option may exist is worth thoughtful evaluation in today’s environment.
Important Considerations
Not all mortgages are assumable. Certain government-backed loans, such as FHA and VA loans, may allow assumption with the lender's approval and adherence to program guidelines. 2,3 Conventional loans are often not assumable unless specifically stated in the original loan terms.
There are also two practical realities to understand.
1. The Equity Gap
If a home has appreciated significantly since 2021, when rates were lower, the remaining loan balance may be far lower than the current purchase price.
Home values rose sharply between 2020 and 2022, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index. 4
In this case, the buyer would need to cover the price difference—typically through cash or secondary financing.
For Occidental Petroleum employees who have built meaningful equity in long-held homes, this may be manageable, but it requires planning.
2. The Approval Process
Mortgage lenders must approve the buyer. The process can take longer than a traditional mortgage due to documentation and underwriting requirements.
This is not typically a last-minute strategy. It should be evaluated alongside retirement income planning, liquidity needs, estate goals, and tax considerations.
Downsizing Is About More Than Square Footage
Downsizing can affect:
- Cash flow
- Portfolio sustainability
- Proximity to family
- Lifestyle flexibility
Many retirees unlock substantial equity when selling a long-held home. That equity can potentially:
- Support retirement income
- Reduce reliance on portfolio withdrawals
- Create opportunities for gifting
- Strengthen estate planning strategies
Meanwhile, the purchasing family may gain the space they need. In certain circumstances, this can be mutually beneficial.
Paying Cash vs. Keeping a Low-Rate Mortgage
Some retirees believe paying cash for a smaller property is always the best move.
However, if a lower-rate mortgage can be assumed and long-term portfolio return expectations exceed that rate, maintaining liquidity may be a rational strategic choice. For Occidental Petroleum employees accustomed to balancing risk, capital allocation, and long-term planning in their careers, this framework often feels familiar.
This is not about increasing leverage unnecessarily. It is about balancing long-term sustainability and personal comfort with risk.
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The Broader Housing Environment
The Federal Reserve Bank of New York has studied what’s called the “mortgage rate lock-in” effect—where homeowners with low-rate mortgages hesitate to move because prevailing rates are much higher. 5 This dynamic has contributed to reduced housing turnover in recent years.
In that context, assumable mortgages can occasionally help facilitate transactions that might otherwise be difficult under higher prevailing rates.
Is This Strategy Right for You?
Before pursuing an assumable mortgage approach, consider:
- Is the property eligible?
- How much capital is required to bridge the equity gap?
- How does keeping—or paying off—a mortgage affect your overall retirement plan?
- How does this decision align with your income and estate planning strategy?
Housing decisions should not be separated from retirement planning.
At The Retirement Group, we help Occidental Petroleum employees evaluate significant financial transitions—like downsizing—within the context of their broader retirement income, tax, and legacy strategies. If you are considering a move within the next one to three years and want to determine whether this approach may fit your situation, you can call The Retirement Group at (800) 900-5867 to discuss your retirement planning needs.
Sources:
1. Freddie Mac. “Refinance Trends in the First Half of 2021.” Freddie Mac Research , 29 Oct. 2021, https://www.freddiemac.com/research/insight/20211029-refinance-trends . Accessed 16 Feb. 2026.
2. U.S. Department of Housing and Urban Development. “Are FHA-Insured Mortgages Assumable?” HUD Answers , 19 Jan. 2026, https://answers.hud.gov/FHA/s/article/Are-FHAinsured-mortgages-assumable . Accessed 16 Feb. 2026.
3. U.S. Department of Veterans Affairs. VA Home Loan Guaranty Buyer’s Guide . April 2022, https://www.benefits.va.gov/homeloans/documents/docs/VA_Buyers_Guide.pdf . Accessed 16 Feb. 2026.
4. Federal Reserve Bank of St. Louis. “S&P CoreLogic Case-Shiller U.S. National Home Price Index (CSUSHPINSA).” FRED: Federal Reserve Economic Data , updated 27 Jan. 2026, https://fred.stlouisfed.org/series/CSUSHPINSA . Accessed 16 Feb. 2026.
5. Aidala, Felix, Andreas Fuster, and Paul Goldsmith-Pinkham. “Mortgage Rate Lock-In and Homeowners’ Moving Plans.” Liberty Street Economics , Federal Reserve Bank of New York, 6 May 2024, https://libertystreeteconomics.newyorkfed.org/2024/05/mortgage-rate-lock-in-and-homeowners-moving-plans/ . Accessed 16 Feb. 2026.
What are the key provisions of the Occidental Petroleum Corporation Retirement Plan that employees should understand to maximize their benefits, and how does the company structure its contributions relative to employees' earnings? As employees of Occidental Petroleum Corporation consider their retirement planning, it's vital to grasp how the company's contributions function, particularly concerning the wage base and annual earnings limits.
Key Provisions of the Occidental Petroleum Corporation Retirement Plan: The Occidental Petroleum Corporation Retirement Plan is fully funded by the company, with contributions based on an employee's annual earnings. The company contributes 7% of annual earnings up to the Social Security wage base ($137,700 in 2020) and 12% on earnings above the wage base. This structure is designed to help employees build substantial retirement savings. The plan's benefit limits align with IRS regulations, and employees should be aware of how these contributions are applied based on annual earnings limits to maximize their benefits(Occidental_Petroleum_Co…).
How can Occidental Petroleum Corporation employees manage their investment options within the Retirement Plan, and what resources does the company provide to help them make informed decisions? The investment options available through the Occidental Petroleum Corporation Retirement Plan serve as a significant tool for employees wishing to tailor their retirement savings according to their financial goals and risk tolerance. Understanding these options can be complex and requires an in-depth exploration of available funds, associated risks, and projected performance.
Managing Investment Options: Occidental Petroleum employees have control over how contributions to their Retirement Plan are invested. The plan offers various investment funds, including bond and stock market index funds, and target date funds. Employees can manage their investment elections through the online platform, oxy.voya.com, which also provides fund performance data and advice resources, such as Online Advice and Professional Management services, to assist employees in making informed decisions(Occidental_Petroleum_Co…).
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Impact of Vesting Schedules: Occidental Petroleum's Retirement Plan vests fully after three years of service. Employees are always fully vested in any Rollover accounts. Vesting schedules impact when employees can fully claim their retirement benefits, with protections under ERISA that guarantee the right to earned benefits. Employees who leave before vesting forfeit the nonvested portion of the company’s contributions(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
What are the distribution options available for employees of Occidental Petroleum Corporation when they reach retirement age, and how do these options affect their financial planning? The variety of distribution options at Occidental Petroleum Corporation can create a much more personalized retirement plan, allowing employees to consider how best to receive their benefits while factoring in tax implications and future income needs.
Distribution Options at Retirement: Employees reaching retirement age (60) have multiple distribution options from the Retirement Plan, including lump sum payments and annuity options. These choices impact financial planning, as each option has different tax and income implications, allowing employees to tailor their benefits to their future financial needs(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
How does Occidental Petroleum Corporation support employees who experience disability, and what provisions are in place for continuing retirement contributions during such periods? Understanding the support structure provided by the company, specifically in relation to short-term and long-term disability, is crucial for employees who may find themselves in unexpected circumstances. It’s important for them to know whether retirement contributions will continue during their disability or if they might need to make adjustments to their financial planning.
Disability and Retirement Contributions: Occidental Petroleum continues to contribute to the Retirement Plan if an employee is receiving short-term disability benefits. The contributions are based on the employee's actual pay during the disability period. This provision ensures that retirement savings can continue during times of temporary disability, supporting long-term financial planning(Occidental_Petroleum_Co…).
How can employees at Occidental Petroleum Corporation ensure their beneficiary designations remain current and what are the implications of these designations for estate planning? The process of maintaining accurate beneficiary designations is critical for the smooth transition of retirement benefits, and employees must be aware of how changes in personal circumstances can impact these designations.
Beneficiary Designations: Employees should regularly update their beneficiary designations to ensure their retirement benefits are directed as desired upon their death. Changes in personal circumstances such as marriage, divorce, or the death of a previously designated beneficiary should prompt an update. Failure to do so may result in unintended allocations(Occidental_Petroleum_Co…)(Occidental_Petroleum_Co…).
What are the specific eligibility requirements for the Occidental Petroleum Corporation Retirement Plan, and how do these requirements differ for various employee categories, such as full-time versus part-time employees? Recognizing the nuances of eligibility criteria within the retirement plan is essential for employees to understand when they can begin to participate and what contributions may apply, especially if they transition between roles.
Eligibility Requirements: Full-time and part-time non-union employees and some union-represented employees are eligible to participate in the plan. Contributions begin automatically on the first day of the month of employment or eligibility. Understanding the specific eligibility requirements, especially for employees transitioning between full-time and part-time roles, ensures accurate participation and benefit accumulation(Occidental_Petroleum_Co…).
How can employees reach out to Occidental Petroleum Corporation for assistance regarding their Retirement Plan benefits, and what are the best practices for ensuring their inquiries are addressed promptly? Effective communication with the company is key during the retirement planning process. Employees should know how to navigate company channels to maximize their understanding of benefits available to them.
Contacting Occidental Petroleum for Assistance: Employees can manage their retirement plan and address inquiries through the Oxy Retirement Service Center and the oxy.voya.com platform. Best practices for ensuring prompt responses include using the appropriate online tools and staying informed about plan updates and changes(Occidental_Petroleum_Co…).
What are the tax implications of distributions from the Occidental Petroleum Corporation Retirement Plan, and how can employees plan accordingly to minimize their tax burden during retirement? Having a comprehensive understanding of how taxes will impact withdrawals is crucial for employees as they strategize their retirement income, and these tax considerations can play a significant role in long-term financial planning.
Tax Implications of Distributions: Distributions from the Occidental Petroleum Retirement Plan are subject to standard federal and state taxes, including required minimum distributions (RMDs) starting at age 72. Employees should consider consulting a tax advisor to minimize tax burdens and maximize retirement income by understanding the specific tax consequences of various distribution options(Occidental_Petroleum_Co…).
How does Occidental Petroleum Corporation's retirement plan structure address the needs of employees transitioning from active service to retirement, particularly in terms of investment performance and management of existing accounts? As employees consider retirement, they should be well-informed about how the company manages contributions already made, ensuring that their investment strategy aligns with their anticipated retirement lifestyle and goals.
Transition from Active Service to Retirement: Occidental Petroleum supports employees transitioning to retirement by continuing contributions and offering a range of investment options that align with long-term financial goals. This structure allows employees to manage their investments effectively during retirement, ensuring that the plan remains aligned with their financial objectives(Occidental_Petroleum_Co…).
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