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Hologic Annuities: Essential Insights for Planning Your Retirement Journey

Healthcare Provider Update: Hologic offers a comprehensive benefits program through its Better Rewards initiative. Employees can choose from medical plans administered by Blue Cross Blue Shield of Massachusetts, including PPO and Consumer Driven Health Plans with HSA options. The company also provides dental, vision, mental health support, and wellness resources. Additional benefits include financial security plans, career development, and family support services 6. 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

Fixed indexed annuities (FIAs) with a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider have emerged as a prominent choice in the Hologic retirement planning landscape, reflecting their increasing acceptance in the financial market. In 2021, these products accounted for approximately 25% of all U.S. individual annuities sold, signifying their growing relevance in retirement strategies.

The GLWB rider is a distinctive feature of these Hologic annuities, offering a lifetime withdrawal guarantee. This means that even if the account balance drops to zero, the retiree still receives a predetermined income. Importantly, unlike income annuities, such as single premium immediate annuities, FIAs with GLWB allow the owner to maintain access to their account balance throughout their lifetime, adding a layer of flexibility.

A recent study delved into the effectiveness of FIAs with GLWB in enhancing Hologic retirement outcomes. This research compared the projected performance of various strategies incorporating FIAs with GLWB against other annuity-based strategies and a portfolio-only approach. Key aspects like projected retirement shortfalls and bequests were analyzed to gauge the efficacy of these strategies.

The findings revealed that FIAs with GLWB can indeed improve Hologic retirement outcomes. However, their full potential is realized when they are integrated into retirement plans appropriately. This typically involves purchasing the annuity before retirement and delaying withdrawals for around a decade. Additionally, it's crucial for the purchaser to remain committed to the contract throughout retirement. Premature exit from the contract often leads to underutilization of the paid guarantees, resulting in a financial loss.

When examining the ability of FIAs with GLWB to mitigate portfolio shortfalls, the study found that they provide more income than a portfolio-only strategy in scenarios of financial shortfall. This benefit stems from their inherent design as an insurance product, offering protection against market and longevity risks.

The impact of FIAs with GLWB on bequests was also notable. They provided increased bequest value compared to a portfolio-only strategy, especially under assumptions of stable or slightly increasing pricing spreads. A pricing spread is essentially the yield that the insurance company deducts from the earned rate for overhead and profit. It's worth noting that while small increases in pricing spreads are fairly common, larger increases are less likely due to potential reputational damage to insurers. However, the possibility of such increases should not be overlooked, and prospective purchasers are advised to request historical index renewal rate data for better understanding.

FIAs with GLWB offering the most generous lifetime benefits were found to outperform other annuity-based strategies in terms of both bequests and mitigating shortfalls. The advantage is contingent upon purchasing the product before retirement and waiting an extended period before starting withdrawals, allowing the benefit base sufficient time to grow.

However, different Hologic retirees have varying financial needs. Those requiring income sooner may find more value in single premium immediate annuities or deferred income annuities, which are generally simpler and less prone to misuse.

Consumer behavior was another critical aspect of this analysis. The likelihood of a consumer lapsing, or voluntarily exiting their contract, is an important consideration. A lapse can significantly diminish the effectiveness of the strategy since the consumer ends up not utilizing the paid guarantee throughout their retirement.

Therefore, when considering FIAs with GLWB, it's essential to assess the likelihood of lapse or misuse. Consumers less familiar with the product or unprepared for retirement are more prone to lapse. Comprehensive education about the product’s features and provisions is crucial for those considering FIAs with GLWB.

In conclusion, the research underscores that while FIAs with GLWB can be beneficial in enhancing retirement outcomes, they are not universally suitable. Consumer mistakes can considerably reduce or nullify the benefits of these products, which are inherently complex. Prospective buyers should undertake a thorough comparison of different FIAs with GLWB, as benefits can vary significantly among products. Paying close attention to historical index renewal rates is also pivotal in making an informed decision.

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Ultimately, FIAs with GLWB can be a valuable tool in a retirement strategy, provided they are selected and used judiciously. Their ability to provide guaranteed income and flexibility, along with their potential to increase bequests under certain conditions, makes them an attractive option for retirees seeking financial security and efficiency in their retirement planning. However, the importance of understanding the nuances and implications of these financial products cannot be overstated, necessitating a careful and informed approach to their integration into one’s financial portfolio.

An essential consideration for those nearing retirement, particularly relevant to Hologic individuals aged around 60, is the impact of inflation on annuity products. According to the National Association of Insurance Commissioners (NAIC), as of 2023, many fixed annuities, including FIAs, do not inherently protect against inflation. This can significantly affect the purchasing power of the fixed income received. Consequently, individuals looking into FIAs as a retirement strategy should consider inflation-protected annuities or supplementary investment strategies to safeguard their future purchasing power, ensuring their retirement income keeps pace with the rising cost of living (NAIC, 2023).

Explore the benefits and considerations of Fixed Indexed Annuities (FIAs) with Guaranteed Lifetime Withdrawal Benefits (GLWB) for effective retirement planning. Our in-depth analysis reveals how FIAs with GLWB can enhance retirement outcomes, mitigate portfolio shortfalls, and potentially increase bequests, especially for those nearing retirement age. Understand the importance of timing in purchasing these annuities and the critical role of consumer behavior in maximizing their benefits. Dive into the complexities of FIAs, learn about pricing spreads, and discover how to choose the right annuity for a financially secure retirement. Ideal for Hologic professionals and retirees seeking smart financial strategies.

Consider Fixed Indexed Annuities (FIAs) with Guaranteed Lifetime Withdrawal Benefits (GLWB) as a sophisticated timepiece, crafted for precision and reliability in the world of retirement planning. Much like a high-end watch that requires careful selection and understanding to fully appreciate its craftsmanship and functionality, FIAs with GLWB demand a discerning approach. They are not just about telling time (providing income) but also about ensuring precision and longevity in financial planning. The right FIA, chosen after meticulous research and tailored to individual retirement needs, can tick steadily, providing a consistent and secure income stream, much like the dependable and unerring movement of a luxury timepiece, ensuring financial stability and peace of mind in retirement years.

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

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

Does Hologic provide a matching contribution for its 401(k) plan?

Yes, Hologic provides a matching contribution to the 401(k) plan to help employees save for retirement.

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

Employees at Hologic are generally eligible to participate in the 401(k) plan after completing a specified period of service.

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

Hologic employees can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

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

Hologic's 401(k) plan offers a variety of investment options, including mutual funds and target-date funds.

Can Hologic employees change their contribution percentage at any time?

Yes, Hologic employees can change their contribution percentage at any time, subject to the plan's guidelines.

Is there a vesting schedule for Hologic's matching contributions in the 401(k) plan?

Yes, Hologic has a vesting schedule for matching contributions, which means employees must work for a certain period to fully own those contributions.

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

The maximum contribution limit for Hologic's 401(k) plan is in line with IRS regulations, which may change annually.

Does Hologic offer any educational resources to help employees manage their 401(k) investments?

Yes, Hologic provides educational resources and tools to help employees make informed decisions about their 401(k) investments.

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

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

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

Hologic Inc. offers its employees the Hologic, Inc. Savings and Investment Plan through Fidelity, covering approximately 6,291 employees. This plan allows participants to make contributions toward their retirement and benefit from company matches. The name of Hologic's 401(k) plan is the "Hologic, Inc. Savings and Investment Plan." Employees who participate in the plan can leave their account with Fidelity, roll it over into an IRA or a new 401(k) plan, or withdraw their funds, though tax penalties may apply for early withdrawal (Capitalize). Hologic does not offer a defined pension plan; instead, they focus on their 401(k) offering. The company terminology for this plan refers to it as a savings and investment vehicle aimed at helping employees grow their retirement funds.

In 2023 and 2024, Hologic has undergone significant restructuring efforts, leading to workforce layoffs and changes in employee benefits, including their 401(k) and pension plans. The company has aligned its strategy with the ongoing SECURE 2.0 Act reforms, which include updates to 401(k) contributions and eligibility, particularly for part-time employees and those nearing retirement. Hologic has also increased its focus on health benefit plans, adapting to new laws that affect retirement savings and telehealth services (Mondaq) (CLA).

Hologic offers stock options and Restricted Stock Units (RSUs) to its employees as part of their equity compensation program. These incentives are primarily aimed at retaining talent by providing long-term financial rewards. Hologic's stock options allow employees to purchase company stock at a predetermined price, typically vesting over a period of years. RSUs, on the other hand, grant employees shares of company stock once certain vesting conditions are met, which can also be tied to performance metrics. For the years 2022, 2023, and 2024, Hologic has continued to offer these equity incentives as part of their compensation packages. RSUs are primarily available to senior-level employees and high performers, allowing them to benefit from the company's growth. Stock options are more broadly available, often included in compensation for managerial and higher-level employees. In 2023, for instance, Hologic executed a significant share repurchase program, buying back millions of shares, which can positively impact the value of stock options and RSUs held by employees. This buyback program reflects the company's commitment to maximizing shareholder value, which directly benefits employees holding stock-based compensation

Lyra Health: Hologic partners with Lyra Health to offer a robust mental and emotional wellness program. This benefit includes access to in-person, virtual, digital, group, and individualized care aimed at supporting employees' mental health. Healthy Living Wellness Program: Hologic collaborates with Virgin Pulse to provide a well-being platform offering motivational tools, tips, rewards, and support to help employees and their families maintain a healthy lifestyle. Parental and Family Care Leave: U.S. employees have access to up to 16 weeks of job-protected parental leave, including 8 weeks of paid leave at 100% salary for both birth and non-birth parents. Birth parents also receive short-term disability coverage. Hologic's policy allows parents to return to work part-time at full pay during the first 4 weeks after leave. Family Care Leave offers 100% paid leave for caring for a family member with a serious health condition under FMLA. Healthcare-Related Acronyms and Terms: Some of the healthcare-related terms and acronyms used by Hologic include FMLA (Family and Medical Leave Act), NICU (Neonatal Intensive Care Unit), and short-term disability. Employee Well-Being Focus: Hologic's recent employee initiatives emphasize mental health support, wellness engagement, and flexible leave options, reflecting the company’s commitment to employee well-being

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For more information you can reach the plan administrator for Hologic at , ; or by calling them at .

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