Healthcare Provider Update: Verizon collaborates with Aetna as its primary healthcare provider, offering a range of health plans and services to its employees and their families. Looking ahead to 2026, the healthcare landscape is poised for significant change, as record hikes in Affordable Care Act (ACA) premiums are anticipated. With some states facing increases exceeding 60%, many individuals could see their out-of-pocket premiums rise by more than 75%, particularly if enhanced federal premium subsidies are not extended. This scenario could create an additional burden for Verizon employees, emphasizing the importance of strategic planning for healthcare coverage amidst such dramatic shifts in costs. Click here to learn more
'With longer life expectancies and 25–35 year retirement horizons becoming more common, Verizon 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, Verizon 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 Verizon 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 Verizon 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 Verizon 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 Verizon 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 Verizon 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 Verizon 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 Verizon 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 Verizon 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 Verizon 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 Verizon employees, phased retirement or part-time work may ease the transition and extend earning years.
The Bottom Line for Verizon 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 Verizon 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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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
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- 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?
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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 Verizon Pension Plan facilitate retirement income for long-term employees, and what specific benefits can employees expect when enrolling in the retirement program provided by Verizon? What unique features does the Verizon Pension Plan offer compared to other retirement plans an employee might have encountered, and how can employees maximize the benefits of these features throughout their career at Verizon?
Verizon Pension Plan Benefits: Verizon's Pension Plan offers substantial benefits aimed at facilitating a secure retirement for long-term employees. Upon enrolling in the retirement program, employees can expect defined benefits that are based on their salary and years of service, ensuring a predictable and stable income after retirement. Unique to Verizon, compared to some other plans, may include options for early retirement under certain conditions and a choice between annuity payments or a lump-sum distribution upon retirement. Employees can maximize these features by planning for long-term service and considering their retirement income needs early in their careers.
In what ways can employees at Verizon strategize their rollover decisions when transitioning from the Verizon Pension Plan to other retirement savings plans upon leaving the company? What factors should be considered by Verizon employees to ensure they are making informed choices regarding rolling over funds to a traditional IRA or another qualified employer plan?
Rollover Strategies: When transitioning from the Verizon Pension Plan to other retirement savings options upon leaving the company, employees should strategize their rollover decisions carefully. Factors to consider include the tax implications, the investment options available in the rollover destination, and the timing of the transfer to avoid penalties. Verizon employees should evaluate the benefits of rolling over to a traditional IRA or another employer's plan, considering their future financial needs and retirement goals.
What are the implications of the recent IRS limits for 2024 concerning contributions to retirement plans for Verizon employees, and how does Verizon align its offerings with these federal regulations? Additionally, how can Verizon employees best take advantage of these limits to enhance their retirement savings while adhering to tax regulations?
IRS Contribution Limits: The implications of IRS limits for 2024 are critical for Verizon employees as these limits dictate how much can be contributed tax-deferred into retirement plans. Verizon aligns its offerings with these federal regulations by adjusting contribution limits in their plans accordingly. Employees are encouraged to maximize their contributions to take full advantage of tax-deferred growth, especially when IRS limits increase, thereby enhancing their retirement savings while adhering to tax regulations.
How does the special tax treatment for lump sum distributions from the Verizon Pension Plan affect employees who receive their benefits early or have specific circumstances, such as being born before 1936? What options do these employees have to manage their tax burden effectively, and how can they best navigate these complicated rules while planning for their retirement?
Tax Treatment of Lump Sum Distributions: The special tax treatment for lump sum distributions from the Verizon Pension Plan can significantly affect employees who opt to receive their benefits early or under specific circumstances like being born before 1936. These employees have options to manage their tax burden effectively by opting for ten-year averaging or capital gain treatment on eligible distributions, allowing for a potentially lower tax rate on their pension benefits.
For surviving spouses and alternate payees of Verizon employees, what are the specific benefits available under the Verizon Pension Plan? How do these benefits compare to those available to employees, and what steps must surviving spouses or alternate payees take to ensure they receive their entitled benefits without delays or complications?
Benefits for Surviving Spouses and Alternate Payees: For surviving spouses and alternate payees, the Verizon Pension Plan offers benefits similar to those available to employees, such as annuity payments or lump-sum options. These beneficiaries must take certain steps to ensure they receive their benefits without delays, such as providing necessary documentation and adhering to plan rules. The plan details and processes for claiming benefits should be clearly understood to avoid complications.
How can Verizon employees utilize the resources available through the Verizon Benefits Center to better understand and manage their retirement benefits? What specific tools and services does the Benefits Center provide, and how can these resources assist employees in making informed decisions regarding their pension plan options?
Utilizing Resources at the Verizon Benefits Center: Verizon employees can utilize various tools and services provided by the Verizon Benefits Center to manage and understand their retirement benefits. The Benefits Center offers personalized consultations, detailed plan documentation, and tools for estimating pension benefits and planning retirement income, assisting employees in making informed decisions about their pension plan options.
What challenges might Verizon employees face regarding eligibility and tax withholding when receiving their pension payments, and how can they mitigate these issues? It's crucial for employees to understand the mechanics of eligibility regarding rollovers and payment processing; what key pieces of information should they be aware of to avoid unexpected taxes?
Challenges in Eligibility and Tax Withholding: Verizon employees might face challenges regarding eligibility and tax withholding when receiving pension payments. Understanding the plan's criteria for eligibility, the implications of rollovers, and the impact of mandatory withholding on distributions is crucial. Employees can mitigate these issues by consulting with the Verizon Benefits Center or a tax advisor to ensure compliance and avoid unexpected taxes.
What is the process for Verizon employees wishing to initiate a direct rollover from the Verizon Pension Plan, and what documentation will they need to prepare? Can employees receive assistance from the Verizon Benefits Center during this process, and how does using a direct rollover benefit them compared to other forms of payment?
Direct Rollover Process: The process for initiating a direct rollover involves deciding the destination of the rollover (traditional IRA or another employer plan), completing necessary documentation, and potentially seeking assistance from the Verizon Benefits Center. A direct rollover helps in avoiding immediate taxes and maintaining the tax-deferred status of retirement savings.
In terms of retirement preparedness, how does the pension plan at Verizon accommodate employees’ needs for financial security in their senior years? What additional education or resources does Verizon provide to assure that employees fully understand their retirement options and the importance of planning ahead?
Retirement Preparedness: Verizon's pension plan is designed to accommodate the financial security needs of employees in their senior years. In addition to the pension benefits, Verizon provides educational resources and planning tools to ensure employees understand their retirement options and the importance of early and consistent retirement planning.
How can employees reach out to the Verizon Benefits Center for further information about the pension plan and other retirement benefits? What specific contact methods are available to employees, and how can these interactions enhance their understanding and management of retirement benefits provided by Verizon?
Contacting the Verizon Benefits Center: Verizon employees seeking more information about their pension plan and other retirement benefits can reach out to the Verizon Benefits Center through various contact methods such as phone, email, or online portals. These interactions are crucial for enhancing understanding and effective management of retirement benefits, ensuring employees make the most of the benefits available to them.
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