Healthcare Provider Update: Healthcare Provider for PepsiCo PepsiCo's primary healthcare provider for employee health benefits is the UnitedHealthcare network, which offers a range of healthcare services and insurance plans for PepsiCo employees. Potential Healthcare Cost Increases in 2026 In 2026, PepsiCo and its employees may face notable increases in healthcare costs due to a combination of factors influencing the Affordable Care Act (ACA) marketplace. Insurance premiums are projected to rise significantly, with some states seeing hikes upwards of 60%, primarily driven by the expiration of enhanced federal premium subsidies. Additionally, the rising costs of medical services and pharmaceuticals are contributing to overall healthcare inflation, with insurers reporting anticipated increases in claims expenses. This perfect storm could potentially lead to out-of-pocket costs skyrocketing for consumers, creating substantial financial pressures. Click here to learn more
“Assumable mortgages can occasionally create opportunities in a higher-rate environment, but PepsiCo employees approaching retirement should evaluate how housing decisions fit into their broader financial picture before making a move,” – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.
“During periods of higher mortgage rates, assumable mortgages can become part of the conversation, but PepsiCo employees nearing retirement may benefit from viewing housing choices within the context of long-term income planning, health care costs, and overall retirement readiness,” – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
-
How assumable mortgages work and why they are being discussed more often in today’s higher interest rate environment.
-
The eligibility requirements, limitations, and financial considerations involved in transferring an existing mortgage.
-
How housing decisions may connect to broader retirement planning considerations for PepsiCo employees.
By Wealth Enhancement's Neva Bradley, CFP®
Many Baby Boomers who built long careers with companies like PepsiCo love their homes but quietly recognize that they may no longer need as much space. Once the nest empties, the four-bedroom house that once held children, pets, and holiday gatherings can begin to feel oversized.
At the same time, many younger families are searching for larger homes that better meet their needs. This housing dynamic may set the stage for the use of assumable mortgages, an arrangement that allows a homebuyer to take over the seller's existing mortgage.
PepsiCo employees approaching retirement could benefit from this strategy, particularly for those who may have locked in historically low mortgage rates, like that those prevailed in 2020 and 2021. During that period, 30-year fixed mortgage rates briefly dropped below 3%, and many homeowners obtained loans below 4%. 1
In today’s higher rate environment, sellers could arguably use the leverage of an assumable mortgage to secure a higher purchase price on their homes in exchange for allowing the buyer to take on a mortgage at rates lower than current market averages.
What Is an Assumable Mortgage?
An assumable mortgage allows a buyer to take over the seller’s existing loan rather than obtaining a new mortgage. If the lender approves the transaction, the buyer may take on the loan’s existing interest rate, remaining balance, and repayment terms, something that could benefit PepsiCo employees who obtained home loans during a lower rate period.
Instead of obtaining a new mortgage at current rates, a qualified buyer could potentially assume a homeowner’s mortgage that originated during the pandemic-era housing market at a rate near 2.75% or 3%. This feature sometimes becomes relevant when PepsiCo homeowners evaluate potential selling strategies.
However, this is only possible if the buyer meets the lender’s qualification requirements and the mortgage itself allows assumption. In many cases, the lender still reviews the buyer’s credit profile and financial standing, which may influence the practicality of this option for PepsiCo employees.
Loans That May Be Eligible
Not every mortgage can be assumed. Government-backed loans often allow assumptions, including:
- FHA loans
- VA loans
- USDA loans
Conventional loans backed by Fannie Mae or Freddie Mac typically do not allow assumptions, although certain adjustable-rate mortgage structures may permit limited forms of assumption depending on the loan terms. This distinction can matter for PepsiCo retirees evaluating potential buyers.
Even when a mortgage is assumable, the buyer generally must still qualify with the lender or loan servicer. Credit review and financial verification are normally required before an assumption is approved, something PepsiCo employees should understand when exploring this strategy.
An Important Detail: Seller Liability Release
One of the most significant—and sometimes misunderstood—aspects of mortgage assumptions is the release of liability.
If the lender does not formally release the seller from responsibility, the seller may remain legally liable for the mortgage even after the loan has been transferred to the buyer. This detail can be important for homeowners considering this type of transaction.
If the buyer later defaults and the seller was not properly released, the seller could still face financial consequences related to the loan. For that reason, lender approval and proper documentation are essential parts of the process for PepsiCo employees considering an assumable mortgage sale.
The Reality of the Down Payment
One practical challenge with assumable mortgages is home equity.
Home values have increased significantly over time. For example, if a home originally purchased for $500,000 is now worth $700,000 and the remaining mortgage balance is $420,000, the buyer must pay the difference between the home’s price and the remaining loan balance. This type of equity gap may be something PepsiCo employees encounter when selling a property.
That difference may require:
- A significant cash down payment
- A second mortgage to cover the remaining amount
This can create challenges for buyers, particularly first-time buyers, which may influence how sellers structure potential transactions.
Additional Factors to Consider
Several other factors can affect how practical an assumable mortgage strategy may be.
Approval Timelines
Certain mortgage programs include timelines for evaluating assumption requests. For example, some FHA and VA guidelines outline how quickly lenders should review completed applications, though actual timelines may vary for buyers interested in properties owned by PepsiCo retirees.
Delinquency Restrictions
Many mortgage programs require the loan to be current—or brought current during the transaction—before the assumption can be approved. This requirement may apply to properties owned by PepsiCo employees considering a sale.
VA Loan Eligibility
With VA loans, the original borrower’s VA entitlement may remain attached to the property unless it is properly substituted. This detail could affect the seller’s ability to use VA benefits for a future home purchase, something that may matter for some PepsiCo employees who are veterans.
Fees
Assumable mortgages may include administrative or transfer fees charged by the lender or loan servicer. While these costs may be lower than those associated with originating a new loan, they still need to be considered by buyers and sellers.
Second Mortgage Considerations
If the buyer needs a second loan to cover the difference between the purchase price and the assumable balance, coordinating with multiple lenders may make the transaction more complex. This situation occasionally arises when PepsiCo employees have accumulated significant equity in their home.
Retirement Planning and Housing Decisions
Housing decisions often connect to broader financial planning considerations.
For individuals approaching retirement, downsizing may involve more than simply reducing square footage. Factors such as cash flow, liquidity, investment allocation, taxes, and long-term planning often become part of the conversation for long-tenured PepsiCo employees preparing for retirement.
At The Retirement Group , housing decisions are frequently reviewed alongside:
- Retirement income planning
- Tax considerations
- Health care planning
- Estate planning
- Long-term portfolio management strategies
For many households, a home represents one of their largest financial assets. Decisions about downsizing, selling, or financing a future home purchase can play an important role in retirement planning for PepsiCo employees.
Thinking About Moving?
If downsizing is part of your retirement considerations, it may help to review your full financial picture before making a decision.
The Retirement Group often discusses housing decisions with individuals and families within the context of broader retirement planning.
To learn more about how housing decisions may fit into your overall retirement strategy, you can speak with a member of The Retirement Group at (800) 900-5867 .
Downsizing is not only a real estate decision—it can also become an important element of long-term financial planning.
Featured Video
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Sources:
1. Federal Reserve Bank of Philadelphia. ' The Pandemic Mortgage Boom ,' by Natalie Newton, James Vickery. Q3/Q4 2022.
2. Freddie Mac. Market Watch: Housing Trends Report . Freddie Mac Single-Family Division, 2022, p. 17. https://sf.freddiemac.com/docs/pdf/other/market-watch-housing-trends_rrs22.pdf.
3. United States, Department of Veterans Affairs, Veterans Benefits Administration. Circular 26-23-10: VA Loan Assumption Updates . 22 May 2023, p. 1. https://www.benefits.va.gov/HOMELOANS/documents/circulars/26-23-10.pdf.
4. United States, Department of Agriculture, Rural Development. HB-1-3555 Single Family Housing Guaranteed Loan Program Technical Handbook . USDA Rural Development, rev. 14 Apr. 2025, pp. 17-14–17-15. https://www.rd.usda.gov/media/file/download/hb-1-3555-consolidated.pdf.
5. Stucki, Barbara R., Jane Tavares, and Marc A. Cohen. Using Home Equity to Sustain Cash Flow for Aging in Place . National Council on Aging, Apr. 2021, pp. 3, 5, 7, 21, 27. https://assets.ncoa.org/ffacfe7d-10b6-0083-2632-604077fd4eca/3c1dd0cf-08a8-46ed-812c-5a56fdf6ded4/2021-NCOA_Home%20Equity-Report%20TWO_5-5.pdf .
What are the key steps an employee needs to take to prepare for retirement from PepsiCo, and how do these steps ensure that they maximize their benefits and entitlements?
Preparing for Retirement: Employees preparing for retirement from PepsiCo need to understand their retirement benefits, estimate their financial needs, and officially inform PepsiCo of their decision to retire. These steps are vital to ensure they maximize their benefits, including pensions, 401(k) plans, and retiree healthcare. The PepsiCo Savings and Retirement Center at Fidelity helps guide employees through this process, ensuring they make well-informed decisions(PepsiCo_October 2022_Ge…).
In what ways can PepsiCo employees navigate the complexities of their pension options, and what considerations should they have in mind when deciding between a lump sum and annuity?
Navigating Pension Options: PepsiCo employees can choose between a lump sum or an annuity for their pension benefits. When deciding, they should consider personal circumstances, such as life expectancy and financial needs. Employees can use the NetBenefits platform to estimate pension values at different retirement dates and consult financial counselors through Healthy Money for personalized advice(PepsiCo_October 2022_Ge…).
How does the PepsiCo Retiree Health Care Program function after retirement, and what criteria must be met for an employee to effectively enroll and maintain this coverage?
Retiree Health Care Program: PepsiCo offers a Retiree Health Care Program available until employees reach age 65, after which coverage transitions to the Via Benefits marketplace. Employees must actively enroll within 31 days of retirement to maintain coverage, or defer enrollment if preferred. The Retiree Health Care Contribution Estimator helps estimate future costs(PepsiCo_October 2022_Ge…)(PepsiCo_October 2022_Ge…).
How do the Automatic Retirement Contributions (ARC) at PepsiCo enhance an employee's retirement savings strategy, and what options do employees have to manage their ARC investments?
Automatic Retirement Contributions (ARC): Employees who receive ARC can manage their investments through NetBenefits. These contributions are automatically added to their retirement savings, enhancing long-term financial security. Employees can review and adjust their investment options to align with their retirement strategy(PepsiCo_October 2022_Ge…).
For employees aging 50 and over, what catch-up contribution options does PepsiCo provide to help with their 401(k) savings, and how can they take advantage of these benefits in their retirement planning?
Catch-Up Contributions: PepsiCo employees aged 50 and above can contribute additional amounts to their 401(k) plans under the catch-up contribution option. This benefit allows employees to boost their retirement savings, helping them prepare more effectively for retirement(PepsiCo_October 2022_Ge…).
What resources are available through PepsiCo for employees looking to calculate their retirement expenses, and how do these tools help in setting realistic financial goals for retirement?
Retirement Expense Calculators: PepsiCo provides tools like the Fidelity Planning & Guidance Center, which helps employees estimate retirement expenses. This tool includes health care costs, mortgage payments, and other potential retirement expenses, enabling employees to set realistic financial goals(PepsiCo_October 2022_Ge…).
How should employees at PepsiCo approach Social Security benefits when planning for retirement, and what role does the company play in facilitating their understanding of these benefits?
Social Security Benefits: Employees approaching retirement should consider when to start Social Security benefits. PepsiCo provides guidance through Healthy Money, helping employees understand how Social Security fits into their overall retirement strategy(PepsiCo_October 2022_Ge…).
What impact does health care coverage have on retired employees' finances, and how can PepsiCo retirees effectively use the Retiree Health Care Contribution Estimator to prepare for future health costs?
Retiree Health Care Contribution Estimator: Health care can significantly impact a retiree's budget. The Retiree Health Care Contribution Estimator is a tool PepsiCo retirees can use to prepare for future health costs. It helps employees estimate their contributions and explore different plan options to manage their post-retirement health care expenses(PepsiCo_October 2022_Ge…).
How can employees get in touch with the appropriate resources to learn more about PepsiCo’s retirement benefits, and what specific contact information should they keep handy during this process?
Contact Information: To learn more about PepsiCo's retirement benefits, employees should contact the PepsiCo Savings and Retirement Center at Fidelity at 1-800-632-2014. Additionally, they can access resources on NetBenefits or consult Healthy Money counselors for personalized financial guidance(PepsiCo_October 2022_Ge…).
What are the implications of interest rate fluctuations on pension benefit calculations at PepsiCo, and how should employees factor these rates into their retirement planning decisions? These questions encourage a comprehensive understanding of the various aspects of retirement planning specific to PepsiCo, as well as consideration for personal financial management.
Interest Rate Fluctuations and Pension Calculations: PepsiCo employees considering a lump sum pension payout should be aware that lump sum values are inversely related to interest rates. A higher interest rate results in a lower lump sum payout, so employees should monitor interest rate trends when planning their pension distribution(PepsiCo_October 2022_Ge…)(PepsiCo_October 2022_Ge…).
-2.png?width=300&height=200&name=office-builing-main-lobby%20(52)-2.png)
.webp?width=300&height=200&name=office-builing-main-lobby%20(27).webp)
-2.png)
.webp)