New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Navigating Late-Career Changes: Essential Retirement Planning Tips for MillerKnoll Employees Facing Unexpected Transitions

Healthcare Provider Update: MillerKnoll offers health insurance coverage through PPO plans with Blue Cross Blue Shield of Michigan. Employees benefit from low deductibles, preventive care at no cost, and access to a broad provider network. The company also provides dental and vision coverage, FSAs, HSAs, and prescription drug benefits through Express Scripts. Additional perks include wellness programs, mental health support, and a 401(k) with employer match 1. MillerKnoll Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

In today's fast-paced world, where career trajectories are often unpredictable, the reality of a forced early retirement or a late-career layoff is becoming increasingly common. This unexpected shift, occurring when many are at their peak earning and saving years, can be a daunting prospect. If someone working for MillerKnoll found themselves in this situation, there are 6 steps to help navigate this challenging period effectively.

Understanding the Magnitude of the Issue

Recent studies reveal that up to 50% of individuals face the prospect of early retirement, often due to circumstances beyond their control. This abrupt change can significantly impact one's financial stability and sense of personal agency, especially when it happens during the prime years of earnings and savings accumulation.

Six Strategic Steps to Counter Forced Retirement

1. Embrace a Moment of Pause

The initial reaction to forced retirement might be a flurry of hasty decisions – selling assets, liquidating retirement accounts, or relocating. However, it is crucial to resist this urge and instead take a moment to collect your thoughts. Understand your financial standing and professional qualifications before making any major decisions. In this phase, consulting a financial advisor can provide valuable insights and guidance.

2. Assess Your Financial Landscape

After leaving MillerKnoll, take a thorough inventory of your financial resources. This includes evaluating savings, emergency funds, debt obligations, and potential income sources like unemployment benefits or Social Security eligibility. Understanding these elements is crucial in reshaping your financial strategy.

3. Restructure Your Budget After Leaving MillerKnoll

With a change in your financial landscape, it's essential to revisit and revise your budget. This process involves identifying and eliminating unnecessary expenses, thereby maximizing the efficiency of your financial resources. Creating a new budget will help in aligning your expenditures with your altered income situation.

4. Reevaluate Your Employment Status

Determine whether continuing to work after leaving MillerKnoll is a viable or necessary option. This evaluation should consider various factors, including health, the nature of your previous employment, and your professional capabilities. For some, this might mean exploring new career paths or part-time opportunities, while for others, it could mean adjusting to a life without formal employment.

5. Explore Health Insurance Options

Healthcare is a critical aspect, especially for those nearing or over 65 years of age. With the average retired couple needing over $300,000 for healthcare over 20 years, understanding and choosing the right health insurance is crucial. Options range from COBRA to healthcare exchanges and employer-sponsored plans. Consulting a professional advisor can be invaluable in navigating this complex area.

6. Update Your Retirement Plan

A forced early retirement often necessitates a reevaluation of your retirement plans. This process involves a comprehensive assessment of your financial situation and retirement goals. Whether you've been an exceptional saver or were just building your retirement fund, each decision in this phase is crucial and requires careful consideration and planning.

Featured Video

Articles you may find interesting:

Additional Considerations

While these steps provide a framework for managing forced retirement, they are not exhaustive. Each individual's situation is unique, and additional factors such as personal goals, family responsibilities, and long-term aspirations play a significant role in shaping the response to this challenge.

Conclusion

Forced early retirement or a late-career layoff is a significant life event that requires careful, strategic planning. By following these six steps, individuals can navigate this challenging period with greater confidence and control over their future. It's essential to remember that while this may be an unexpected turn in one’s career path, with careful planning and the right guidance, it can be managed effectively for a stable and fulfilling retirement.

Forced retirement is akin to an unexpected detour on a well-planned cross-country road trip. Imagine you've been driving on a familiar, well-mapped highway, heading towards a destination you've long anticipated - your peaceful and rewarding retirement. Suddenly, a roadblock appears, rerouting you onto an unfamiliar path. This detour, much like forced retirement, is unplanned and can be disorienting. However, with the right map - in this case, strategic financial planning, budget adjustments, health insurance considerations, and mental health awareness - you can navigate this new route effectively. Though the journey to retirement after leaving MillerKnoll has changed, with careful planning and adaptability, you can still reach a destination that is fulfilling and secure, perhaps even discovering new and rewarding landscapes along the way.

What type of retirement plan does MillerKnoll offer to its employees?

MillerKnoll offers a 401(k) retirement savings plan to its employees.

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

Employees at MillerKnoll can enroll in the 401(k) plan through the company's online benefits portal or by contacting the HR department for assistance.

Does MillerKnoll match employee contributions to the 401(k) plan?

Yes, MillerKnoll provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.

What is the maximum contribution limit for the MillerKnoll 401(k) plan?

The maximum contribution limit for the MillerKnoll 401(k) plan aligns with IRS guidelines, which can change annually. Employees should check the latest IRS limits for specifics.

When can employees at MillerKnoll start contributing to the 401(k) plan?

Employees at MillerKnoll can start contributing to the 401(k) plan after completing their initial eligibility period, which is typically outlined in the employee handbook.

Are there any fees associated with the MillerKnoll 401(k) plan?

Yes, there may be administrative and investment fees associated with the MillerKnoll 401(k) plan. Employees should review the plan documents for detailed information.

Can employees at MillerKnoll take loans against their 401(k) savings?

Yes, MillerKnoll allows employees to take loans against their 401(k) savings, subject to the terms and conditions of the plan.

What investment options are available in the MillerKnoll 401(k) plan?

The MillerKnoll 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can employees at MillerKnoll change their 401(k) contribution amounts?

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

What happens to the 401(k) savings if an employee leaves MillerKnoll?

If an employee leaves MillerKnoll, they can choose to roll over their 401(k) savings into another qualified retirement account, cash out, or leave the funds in the MillerKnoll plan, depending on the plan's rules.

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

Pension Plan Name: MillerKnoll Pension Plan (for defined benefit pension plan) - Information available on pages 12 and 15 of the MillerKnoll 2023 Annual Report. Years of Service and Age Qualification: Employees generally need at least 5 years of service to be eligible for the MillerKnoll Pension Plan. The plan also typically requires employees to be at least 55 years old to qualify for full pension benefits. MillerKnoll 401(k) Savings Plan - Information available on pages 18 and 22 of the MillerKnoll 2023 Benefits Overview. Eligibility for 401(k) Plan: Generally, MillerKnoll employees are eligible to participate in the MillerKnoll 401(k) Savings Plan after completing 30 days of service.

Restructuring and Layoffs: In 2023, MillerKnoll announced significant restructuring plans due to a challenging economic environment. This included the reduction of its workforce as part of a broader cost-cutting strategy. The company aimed to streamline operations and improve profitability by eliminating redundant positions and optimizing its organizational structure. These changes were driven by declining demand in the office furniture sector, which was impacted by remote work trends and economic uncertainties. It is crucial to address this news given the current economic climate, as it highlights the broader trend of companies adjusting their workforce in response to changing market conditions.

MillerKnoll provides stock options and Restricted Stock Units (RSUs) as part of its employee compensation package. Stock options (SO) allow employees to purchase company stock at a fixed price in the future, while RSUs are granted with no purchase required but are subject to vesting conditions. For MillerKnoll, the acronyms often used are SO for stock options and RSU for Restricted Stock Units.

Health Benefits Overview: On MillerKnoll’s official website, you can find information about their health benefits under the "Careers" or "Employee Benefits" section. MillerKnoll offers a comprehensive benefits package that includes medical, dental, and vision insurance, along with wellness programs. Specific Terms & Acronyms: Common terms include HSA (Health Savings Account), FSA (Flexible Spending Account), EAP (Employee Assistance Program), and preventive care benefits.