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Exploring Health Care Options for First Horizon Retirees: What You Need to Know for a Healthy Transition into Retirement

Healthcare Provider Update: First Horizon offers health, dental, and vision insurance tailored to individual and family needs. Employees benefit from HSAs, FSAs, disability coverage, and parental leave. The company provides a 401(k) with up to 6% matching, adoption reimbursement, and wellness programs. Additional perks include tuition reimbursement, mentoring, and digital wellness platforms3. First Horizon With ACA premiums projected to rise sharply, First Horizons employer-sponsored plans and financial wellness tools help employees avoid the volatility of marketplace costs. Their matched savings and flexible spending options provide a buffer against rising healthcare expenses. Click here to learn more

In an increasingly dynamic retirement landscape, understanding how to maintain health care coverage after leaving the workforce is crucial. As many individuals opt for early retirement, navigating the transition period before becoming eligible for Medicare at 65 is a key financial and health consideration. This article delves into the various options available for health care coverage during this interim period, ensuring that your First Horizon retirement savings remain secure.

Early Retirement and Health Care Coverage: A Prevalent Issue

Statistics reveal that a significant number of First Horizon individuals retire earlier than planned. Before the pandemic, about one-third of retirees reported leaving the workforce sooner than they anticipated. This early exit often results in the loss of employer-provided health care coverage, a situation faced by nearly half of Americans. Thus, finding alternative health care solutions becomes imperative to avoid depleting retirement funds.

Exploring Health Care Options for First Horizon Pre-Retirees

1.COBRA Coverage

What it Offers : COBRA provides an 18-month extension of your current health care plan after job termination.

Ideal For : Individuals with less than 18 months to Medicare eligibility.

Financial Implications : It may be more expensive than other options and is not always available, particularly in companies with fewer than 20 employees.

2. Short-term Health Insurance

What it Offers : A policy that can last up to 364 days.

Ideal For : Those needing coverage for less than a year and who do not wish to use COBRA.

Financial Implications : These policies often offer limited coverage and do not typically include prescription drugs.

3. Employer-Extended Health Insurance

What it Offers : Continued benefits from your most recent employer, even after leaving the job.

Ideal For : Individuals requiring coverage for a longer period than COBRA allows.

Financial Implications : Costs may be higher compared to when you were employed.

4. Spousal Plan Coverage

What it Offers : Enrollment in a spouse’s employer health plan.

Ideal For : Those seeking longer-term coverage beyond COBRA.

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Financial Implications : It's important to compare costs and coverage, as premiums and networks may change when switching to a family plan.

5. Private or Marketplace Health Insurance

What it Offers : Coverage purchased through the Health Insurance Marketplace or state health insurance exchanges.

Ideal For : Those without coverage duration limits or who have lost their jobs.

Financial Implications : Costs vary but are capped at 8.5% of income due to the American Rescue Plan of 2021.

6. Part-Time Work Health Coverage

What it Offers : Health insurance from part-time employment.

Ideal For : Individuals willing to work part-time with benefits.

Financial Implications : Availability of health benefits can be limited to certain working hours, often 30 hours a week.

7. Health Care Sharing Programs

What it Offers : Community-based health care programs, often faith-based.

Ideal For : Those comfortable with the program's stipulations and limitations.

Financial Implications : Coverage may have religious and lifestyle prerequisites, and the IRS does not currently recognize these expenses as tax-deductible.

Navigating Legal and Financial Complexities

When considering these options, it is crucial to consult with financial and legal professionals to ensure compliance with tax, investment, and accounting obligations. Tyler De Haan, a Registered Representative of Principal Funds Distributor, emphasizes the importance of understanding the intricate details of each option, especially in the context of their impact on the retirement budgets.

Conclusion: Safeguarding Your Retirement Health and Wealth

Selecting the right health care coverage during the gap years before Medicare eligibility is a decision that requires careful consideration of your financial situation, health needs, and personal circumstances. By exploring the options detailed above, you can make an informed decision that protects both your health and your retirement savings.

An often overlooked aspect for those nearing retirement is the potential impact of Health Savings Accounts (HSAs). For individuals retiring without healthcare, an HSA offers a tax-advantaged way to save for medical expenses. According to a report by Fidelity Investments (2023), individuals are estimated to need approximately $300,000 to cover health care costs in retirement. HSAs not only provide a method to accumulate these funds but also offer the flexibility to pay for a wide range of medical expenses tax-free, making them a valuable tool for managing healthcare costs in retirement, especially for those without employer-sponsored health benefits.

Navigating healthcare options when retiring without employer-provided insurance is akin to setting sail on a journey across the ocean. Just as a sailor needs to choose the right boat for different parts of their voyage, a First Horizon retiree must select the appropriate healthcare coverage for the period between leaving their job and becoming eligible for Medicare. COBRA is like a sturdy yacht that offers a familiar but costly ride for a short duration. Short-term health insurance and employer-extended benefits are akin to speedboats – quick, less comprehensive solutions. A spouse’s plan represents a tandem sail, sharing the journey with a partner. Private insurance is like building your custom ship, tailored but with varied costs. Part-time work coverage is a communal boat with limited availability, and health care sharing programs are like joining a convoy, sharing risks and rewards with others. Each option has its unique navigational challenges and rewards, essential for a smooth journey into retirement from First Horizon.

What type of retirement savings plan does First Horizon offer to its employees?

First Horizon offers a 401(k) retirement savings plan to help employees save for their future.

Does First Horizon provide matching contributions to the 401(k) plan?

Yes, First Horizon provides a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the eligibility requirement to participate in First Horizon's 401(k) plan?

Employees at First Horizon are eligible to participate in the 401(k) plan after completing a specific period of service, typically within the first year of employment.

How can employees at First Horizon enroll in the 401(k) plan?

Employees can enroll in First Horizon's 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What investment options are available in First Horizon's 401(k) plan?

First Horizon offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.

Can employees at First Horizon take loans against their 401(k) balance?

Yes, First Horizon allows employees to take loans against their 401(k) balance under certain conditions, as outlined in the plan documents.

What is the vesting schedule for First Horizon's 401(k) matching contributions?

The vesting schedule for First Horizon's matching contributions typically follows a graded schedule, which means employees earn ownership of the match over a period of time.

Are there any fees associated with First Horizon's 401(k) plan?

Yes, there may be administrative fees associated with First Horizon's 401(k) plan, which are disclosed in the plan documents.

How often can employees at First Horizon change their 401(k) contribution amount?

Employees at First Horizon can change their 401(k) contribution amount at any time, subject to the plan's guidelines.

What is the maximum contribution limit for First Horizon's 401(k) plan?

The maximum contribution limit for First Horizon's 401(k) plan is set by the IRS and may change annually; employees should refer to the latest IRS guidelines for specifics.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

First Horizon National Corporation offers both a pension plan and a 401(k) plan to its employees. The First Horizon National Corporation Pension Plan is a defined benefit corporate pension fund that was established in 1946. This pension plan provides retirement, death, and disability benefits to eligible employees and their beneficiaries. The assets of the pension plan are managed by the Pension, Savings, and Flexible Compensation Committee, with First Tennessee Bank National Association serving as the trustee (PitchBook). In addition to the pension plan, First Horizon provides a 401(k) plan where employees can save for retirement with contributions matched by the company up to 6% of their pre-tax income. The 401(k) plan also includes various savings and money management tools, such as Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA), which allow employees to set aside pre-tax income for healthcare and dependent care expenses

Restructuring and Layoffs: In early 2024, First Horizon announced a significant restructuring plan aimed at streamlining operations and reducing costs. The bank plans to cut approximately 5% of its workforce over the next year as part of this initiative. This move is in response to increasing operational expenses and the need to enhance efficiency in a challenging economic environment. This news is particularly relevant as it reflects broader trends in the banking sector where institutions are adjusting their workforces to remain competitive amidst economic uncertainty.

First Horizon Corporation (FHN) provides a comprehensive employee stock option and Restricted Stock Unit (RSU) program aimed at retaining top talent and incentivizing long-term performance. First Horizon offers both stock options and RSUs to eligible employees, primarily those in executive or senior management roles. These awards generally vest over a period of three to five years, with specific performance metrics tied to company performance and stock price. Employees who meet certain job levels and performance criteria are eligible to participate in these equity compensation plans. In 2022, First Horizon offered RSUs that vest annually, providing employees with ownership stakes in the company. By 2023 and 2024, the bank continued this program with slight adjustments, including expanded eligibility and adjusted performance criteria (

First Horizon Health Benefits Overview Company Website: The official First Horizon website provides the most direct and accurate information. Glassdoor: This site often has employee reviews and details about health benefits, including recent changes or feedback from employees. Indeed: Similar to Glassdoor, Indeed might have employee reviews and specific information about health benefits and any recent updates. LinkedIn: Sometimes companies post updates about employee benefits or changes in health-related policies here. Benefits.gov: This site provides general information about employee benefits and might have relevant details or changes affecting First Horizon.