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Healthcare Provider Update: Healthcare Provider for Lumen Lumen Technologies offers healthcare benefits through various providers, with a significant partnership with Cigna Healthcare for their employee health plans. Cigna provides a range of coverage options including medical, dental, and vision care, tailored to meet the diverse needs of Lumen's workforce. Healthcare Cost Increases in 2026 In 2026, healthcare costs are projected to experience significant increases, largely driven by the expiration of enhanced federal premium subsidies under the Affordable Care Act (ACA). As insurers anticipate premium hikes of around 20% on average, many states are reporting increases of over 60% in some plans. This perfect storm of rising medical expenses, coupled with increased demand for services and labor shortages, could push out-of-pocket premiums for 92% of ACA enrollees up by more than 75%. Consequently, individuals may face considerable financial barriers to accessing adequate healthcare coverage moving forward. Click here to learn more
For Lumen employees, it's a financial decision to relocate in retirement - planning with advisors like Wesley Boudreaux of the retirement group can help you reduce living expenses and leave a legacy for future generations.
Understanding cost-of-living differences is critical for Lumen retirees, and working with financial professionals like Patrick Ray of the retirement group can help you make sound decisions about protecting your retirement lifestyle and long-term financial security.
In this article, we will discuss:
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1. Changing costs across regions affect retirement planning.
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2. Important taxes and healthcare considerations should be taken into account when moving for retirement.
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3. What financial scenario planning can do for your retirement?
This ancient saying rings true when considering a move. Such a decision impacts on many levels - social interactions, professional opportunities, daily life and of course financial status. Any major move, whether for retirement or a job change, requires a financial analysis first.
Living costs vary greatly within the United States. It costs more than double to live in Manhattan according to the Council for Community and Economic Research (CCER). Instead, living costs are about 83% and 78% higher than the national average in Kalamazoo, Michigan, and Decatur, Illinois, respectively.
Understand that these different expenditures include accommodation, health care, food and taxes among others. These costs vary widely city by city and state, making cost-of-living comparisons a complex but necessary facet of Lumen retirement planning. A consultation with financial experts can explain the possible shift in your financial picture in light of these variable expenses.
Take a hypothetical scenario involving a San Francisco couple, Henry and Linda, and their financial advisor, Daniel. Lumen retirees looking to retire in Kalamazoo, Michigan, should consider factors. Henry and Linda plan to leave Lumen at 63 to remain active and provide a legacy for their two adult children.
When they assess their financial position they say they have USD 250,000 in annual pre-tax income, USD 80,000 in annual expenses and close to USD 100,000 in annual reserves. The couple owes only USD 200,000 on a USD 500,000 San Francisco house. They each have one million dollars in savings combined and have an investment portfolio.
They calculate projected retirement expenses - currently USD 80,000 per year in San Francisco - with Daniel's help. Daniel models 1,000 scenarios for evaluating market conditions and their effect on Henry and Linda's finances using a financial planning tool. In San Francisco, the couple would have an 80% chance of maintaining their standard of living through age 96, leaving a possible USD 2.4 million legacy. Even so, 20% of the scenarios require an expenditure cut to avoid shorting their finances, the worst-case scenario left them USD 687,000 short.
In contrast, moving to Kalamazoo will improve Henry and Linda's finances. From 2024 onwards, annual expenses including taxes would be about USD 64,900. In an average market, their legacy could reach nearly USD 5 million. They would cover about USD 150,000 of expected retirement expenses even in the most adverse market conditions.
State and local taxes on retirement income are often not considered in retirement planning. State income taxes on state income are not imposed in Florida, Texas, and Nevada, a huge savings for retirees according to a 2021 report from the Tax Foundation. Without those extra financial burdens, Lumen retirees may have more retirement savings to support their employees and pursue other interests. To optimize financial security and enjoyment in retirement, detailed tax analysis of potential retirement locations is necessary.
Henry and Linda choose Kalamazoo because of their financial prospects. Migration appears more attractive than downsizing in San Francisco, extending their working years, or increasing their savings. The transfer is a smart financial move that improves their retirement enjoyment and leaves a substantial legacy.
And so the choice of where to retire becomes a matter of collective interest rather than of individual choice. It influences many areas of life - including finances, relationships and pastimes. Accurate estimation of the cost implications of a move location may be a challenge, including accommodation, health care, and taxes. But detailed scenario planning as part of financial planning remains necessary. The report lays out possible trade-offs so you can make an educated, confident decision now, for a prosperous retirement from Lumen and also a legacy for future generations.
Conclusion:
For a sound decision on relocation for a Lumen retirement, financial planning and consideration of regional differences in living costs are necessary. Hence, prudent retirement means preserving and growing financial legacies for future generations. Careful planning and sound financial management can change retirement from a time of uncertainty into years of enjoyment, stability, and financial security.
Compare moving for retirement to taking a voyage. It is your finances that will take you off to the gold horizon of retirement after years of construction and maintenance. Different destinations are like different ocean currents - they have their own wind patterns (cost of living) and possible storms (extra costs). A destination with mild and predictable currents increases the ship's endurance and longevity by providing a pleasant voyage. In contrast, sailing into rough water may be exciting and adventurous but also strain on the ship and cause damage or depletion of resources. Be armed with precise navigational aids (financial planning and advice) and a map (analytical comparisons and projections) for your voyage into retirement - to a point where you can anchor and take in the view of a life lived.
Added Fact:
Lumen retirees considering moving in retirement should know the move could affect Medicare coverage. A 2021 report by the U.S. Centers for Medicare & Medicaid Services says that Medicare coverage and premiums vary by location and plan. Moves to another state or region may require retirees to rethink their Medicare options, which may mean different coverage and costs. That highlights the need to research and understand Medicare implications when moving in retirement so that healthcare needs can be met while maximizing financial security and retirement enjoyment.
Added Analogy:
It's like picking the right car for a cross-country road trip when you're a Lumen professional deciding where to retire. Imagine your retirement as an open road, and your money as the vehicle you will drive. Different retirement locations resemble various cars in terms of features and cost. The right vehicle (retirement location) may ensure a pleasant ride. Some are comfortable and save you money on fuel (living expenses), while others are sporty and adventurous but expensive. Pick the vehicle (location) that fits your budget and lifestyle for your retirement road trip. So don't take a sports car out on rough ground without preparation for your retirement move - enjoy the ride and arrive at your destination with confidence.
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. NerdWallet. 'Cost of Living Calculator | Kalamazoo, MI vs. San Francisco, CA.' NerdWallet , 2024, https://www.nerdwallet.com/cost-of-living-calculator/compare/kalamazoo-mi-vs-san-francisco-ca .
2. Thomson Reuters. 'The Accountant's Guide to State Taxes on Retirement Income.' Thomson Reuters , 2024, https://tax.thomsonreuters.com/blog/the-accountants-guide-to-state-taxes-on-retirement-income/?utm_source=chatgpt.com .
3. Kiplinger. 'Retirement Taxes: How All 50 States Tax Retirees.' Kiplinger , 2020, https://www.kiplinger.com/retirement/602202/taxes-in-retirement-how-all-50-states-tax-retirees?utm_source=chatgpt.com .
4. PayScale. 'Cost of Living in Kalamazoo, Michigan.' PayScale , 2024, https://www.payscale.com/cost-of-living-calculator/Michigan-Kalamazoo?utm_source=chatgpt.com .
5. BlackRock. 'What to Know About How Retirement Savings Is Taxed.' BlackRock , 2024, https://www.blackrock.com/us/individual/education/retirement/tax-implications?utm_source=chatgpt.com .
What specific retirement benefits does Lumen Technologies, Inc. offer to employees who have dedicated many years of service to the company? In what ways do these benefits reflect Lumen's commitment to taking care of its employees post-retirement, and how do they align with the company's overall values regarding employee welfare and support?
Retirement Benefits: Lumen Technologies offers its employees retirement benefits that include 401(k) plans and pension options, reflecting its commitment to post-retirement welfare. These benefits are aligned with Lumen’s values of providing security and care for its employees after years of dedicated service. They are designed to ensure long-term financial stability for retirees, aligning with Lumen's mission of enhancing employee well-being(Lumen Technologies Inc_…).
As an employee of Lumen Technologies, Inc., how can you effectively plan for your retirement to maximize your benefits? What factors should you consider, and what resources does Lumen provide to help employees navigate the complexities of retirement planning to ensure a secure financial future?
Retirement Planning: As an employee of Lumen Technologies, you should consider factors like years of service, retirement plan contributions, and projected retirement age to maximize your benefits. Lumen provides resources such as retirement calculators and financial planning tools to help employees navigate these complexities and secure their financial future post-retirement(Lumen Technologies Inc_…).
How do Lumen Technologies, Inc.'s retirement plans compare with the industry standards? In which areas can Lumen improve its offerings to remain competitive and retain top talent while ensuring the financial security of its employees in their retirement years?
Comparison with Industry Standards: Lumen’s retirement plans are competitive within the industry, but improvements could be made in areas such as enhanced pension offerings or matching contributions in the 401(k) plans to attract and retain top talent. This would ensure financial security for employees in their retirement years while keeping Lumen competitive in the market(Lumen Technologies Inc_…).
Can you explain the role of the HRCC (Human Resources and Compensation Committee) at Lumen Technologies, Inc. in overseeing employee retirement plans? What measures does this committee take to ensure that retirement benefits remain aligned with the organization’s goals and employee expectations?
HRCC Role in Retirement Plans: The Human Resources and Compensation Committee (HRCC) at Lumen oversees retirement benefits to ensure they align with the company’s goals and employee expectations. The committee reviews and updates the plans regularly, ensuring they remain relevant and meet both the company’s financial objectives and the needs of its employees(Lumen Technologies Inc_…).
What changes to federal regulations or IRS limits in 2024 could potentially impact Lumen Technologies, Inc.'s retirement plans? How should employees prepare for these potential changes to ensure they are fully utilizing their benefits?
Federal Regulation Changes in 2024: Changes to IRS limits or federal regulations, such as adjustments to contribution caps or tax deductions, could impact Lumen’s retirement plans. Employees should stay informed about these changes to fully utilize their benefits, and Lumen’s HR team provides updates and resources to assist in navigating these regulatory adjustments(Lumen Technologies Inc_…).
How does Lumen Technologies, Inc. ensure that all employees are aware of their retirement options? What communication strategies does the company employ to make sure employees understand the specifics of their retirement benefits and the necessary steps for enrollment or participation?
Employee Awareness of Retirement Options: Lumen employs a variety of communication strategies, including workshops, online resources, and HR consultations, to ensure that employees are aware of their retirement options. Regular updates and easy access to information help employees understand the steps needed for enrollment or participation(Lumen Technologies Inc_…).
In the event of unforeseen circumstances, such as death or disability, how does Lumen Technologies, Inc. protect the retirement benefits of its employees and their families? What provisions are specifically designed to support employees and their loved ones during these challenging times?
Protection of Retirement Benefits: In cases of death or disability, Lumen has provisions to protect retirement benefits for employees and their families. Survivor benefits and disability accommodations are designed to provide continued financial security for employees and their loved ones during challenging times(Lumen Technologies Inc_…).
For employees nearing retirement at Lumen Technologies, Inc., what strategies should they adopt to ensure they transition smoothly out of the workforce? What resources or programs does Lumen offer to assist employees during this significant life change?
Transitioning to Retirement: Employees nearing retirement at Lumen can benefit from financial planning tools and transition programs offered by the company. These resources help ensure a smooth exit from the workforce and provide the necessary support for this significant life change(Lumen Technologies Inc_…).
How is Lumen Technologies, Inc. addressing the challenges of an aging workforce regarding retirement readiness? What initiatives or programs are in place to help older employees prepare for retirement and to facilitate knowledge transfer to younger employees?
Addressing an Aging Workforce: Lumen is addressing retirement readiness through programs that help older employees prepare for their transition into retirement. These initiatives include financial education, retirement planning resources, and mentorship programs to facilitate knowledge transfer to younger employees(Lumen Technologies Inc_…).
For employees who wish to learn more about the retirement benefits and planning processes offered by Lumen Technologies, Inc., what contact methods are available? How can employees reach out to the appropriate department for detailed inquiries and assistance regarding their retirement options?
Contact Methods for Retirement Inquiries: Employees wishing to learn more about Lumen’s retirement benefits can reach out to the HR department via phone, email, or the company’s internal benefits portal. Lumen’s HR team provides detailed assistance regarding retirement options and planning(Lumen Technologies Inc_…).
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