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

5 Topics All WestRock Employees Should Cover Before Transitioning Into Retirement

Healthcare Provider Update: Healthcare Provider for WestRock: WestRock employees typically receive their health care benefits through various providers as part of employer-sponsored insurance plans. Specific details on the primary healthcare provider may vary, but it's known that large companies like WestRock often collaborate with major insurers. To identify the exact provider, employees should consult their HR department, which can provide the most accurate and relevant information. Potential Healthcare Cost Increases in 2026: As WestRock prepares for 2026, employees should brace for significant healthcare cost increases. With the expiration of enhanced federal ACA subsidies and rising medical costs, many workers could face steep premium hikes, potentially exceeding 75%. A recent survey indicates that nearly half of large employers, including WestRock, anticipate transferring more healthcare expenses to employees, raising deductibles and out-of-pocket maximums. This evolving landscape highlights the importance for WestRock employees to understand their benefits and mitigate potential financial impacts. Click here to learn more

“As we witness a shift in the population with 11,000 people retiring every day in the United States, it is important for WestRock employees to prepare for retirement with a strategic plan that matches the financial resources with the retirement lifestyle goals,” said Tyson Mavar of The Retirement Group at Wealth Enhancement Group. “This makes for a smooth transition to a fulfilling retirement.”

“Wesley Boudreaux of The Retirement Group at Wealth Enhancement Group explains that for WestRock employees, it is important to know the details of the retirement spending patterns in order to guarantee a sustainable financial future. This way, they can make the later years of their life a pleasant retirement by preparing for different expenses at different stages of retirement.”

In this article, we will discuss:

Retirement Lifestyle Visualization: How future WestRock retirees should envision their retirement, aligning financial planning with lifestyle aspirations.
Retirement Cash Flow Management: An analysis of the changes in spending patterns during retirement for the WestRock population.
Income and Healthcare Strategies in Retirement: How to guarantee income and pay for healthcare before Medicare eligibility.

This is especially important in a world where retirement is changing fast, and there are a number of critical factors that should be considered before entering this stage of life. As we approach 2024, there is a major shift in the American labor market. The Alliance for Lifetime Income has estimated that a whopping 11,000 Americans are retiring every day in what has been called the “year of Peak 65.” This demographic shift is being driven by the retirement of the Baby Boomer generation from the labor market, which underscores the importance of thoughtful retirement planning.

The retirement preparation of WestRock is more than just financial independence; it is about the overall approach towards the change of lifestyle. Let’s look at five important things that should be considered in order to navigate through this path correctly:

Visualizing a Retirement Lifestyle:
This is an important first step in the WestRock retirement planning: thinking about the kind of retirement you want to live. Future WestRock retirees should be looking to engage in a number of activities that are of interest to them and that are in line with their goals. Some examples of these activities can be playing recreational sports like pickleball or golf, going on trips, volunteering in the community, taking part in part-time job exploration, or just relaxing at a second home. This is because precision in the financial planning process is a function of the individual’s retirement vision, which means that financial resources and lifestyle goals are aligned.
Retirement Cash Flow Management:
It turns out that many WestRock individuals know that their spending patterns do not decrease but rather vary during the retirement period, despite the fact that most people assume that expenses decrease during this period. The ‘retirement smile’ concept depicts a typical WestRock retirement expenditure pattern: in the first few years of retirement, more is usually spent on travel and leisure due to good health. One thus incurs this expense as they mature into their 80s, which decreases slowly then levels off before increasing with healthcare expenses in the later years. It is important to know how to manage these unpredictable spending habits in order to maintain financial stability in retirement.

Ensuring Adequate Income for Retirement:
The absence of regular employment income is a clear transition from accumulation to decumulation of wealth. This stage requires a planned replacement of income that is in line with long-term financial goals and tax-efficient. This method depends heavily on Social Security payments, so timing of when to collect them is critical. Moreover, this type of strategy is particularly important for WestRock people as they have to learn how to arrange their portfolio withdrawals so as to minimize tax consequences and meet the necessary income requirements. However, this time frame also offers the opportunity for calculated financial maneuvers like capital gain harvesting to take advantage of lower income tax brackets or IRA withdrawals or Roth conversions.
Planning for Health Insurance:
A big issue for people who retire before the age of 65 is health insurance. When an individual in their early 60s loses their employer-based health care, they have to look for other forms of insurance which are very expensive and not as comprehensive. Some ways include using COBRA for short-term coverage or maximizing income to be able to use Affordable Care Act subsidies until one is eligible for Medicare. It is also quite common for tax or financial planning professionals' help with these choices because they navigate through the complexities of early retirement health insurance.
Considering Long-Term Care:
Retirement planning is incomplete without making provisions for future long-term care needs. This planning includes making decisions on what one wants to do in the later years of life, whether to age in place or to move to a care facility, the provider of the care, and the cost of the care. The other options are to buy long-term care insurance (LTCI) or self-insure, and the latter will affect your options based on when you buy and what features you want in the policy. It is therefore important to plan ahead for this in order for the care needs to be met without overburdening the providers in this area.

To sum up, the process of going into retirement is complex and requires careful planning and forward thinking. It is crucial to have customized WestRock retirement plans that include long-term care, health care, finances, and lifestyle planning as the Baby Boomer generation sets off on this journey. WestRock retirees can confidently traverse this transitional time and ensure a secure and enjoyable retirement by addressing these factors with diligent planning and expert coaching.

Leaving for retirement is like embarking on a large ocean cruise after decades of constructing and outfitting your vessel. An individual who is about to retire must make arrangements for their journey into retirement, much as an experienced captain carefully plots their course while taking weather trends, navigational charts, and ports of call into account. Planning your retirement is similar to mapping out your route; you have to decide if you want to visit sleepy beach villages or bustling international ports. Taking care of your financial flow in retirement is similar to distributing resources wisely when sailing, making sure you have enough supplies for both calm and choppy waters. Having a steady stream of retirement income is like having a good map and compass; without both, you run the danger of becoming lost. Managing health insurance prior to Medicare is similar to packing for inclement weather—you have to make sure your vessel is strong enough to endure all circumstances. Last but not least, making long-term care plans gives you the assurance that you're ready for anything. Think of it like having a lifeboat. Though careful planning is necessary for this journey, it can be a successful and fulfilling one with the correct preparation.

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Sources:

Statler, Jean. 'Growing Health-related Concerns in Retirement.' Protected Retirement Income and Planning Study (PRIP) 2024 , Alliance for Lifetime Income, 2024. www.protectedincome.org . Accessed 5 Feb. 2025.
Staff Reports. 'Disparity in Retirement Savings.' Insurance NewsNet , InsuranceNewsNet, 2024. www.insurancenewsnet.com . Accessed 5 Feb. 2025.
Chatzky, Jean. 'Women are Taking Control of their Finances, Investments and Retirement Planning.' The State of Women 2022 , HerMoney, 12 Apr. 2022. www.herfinance.com . Accessed 5 Feb. 2025.
Gallagher Research Team. 'Generational Characteristics in Organizational Wellbeing.' Organizational Wellbeing Poll 2024 , Gallagher, June 2024. www.gallagher.com . Accessed 5 Feb. 2025.
Allianz Life Research Team. 'Americans Facing a New Retirement Reality.' Allianz Life, 31 May 2023. www.allianzlife.com. Accessed 5 Feb. 2025.

How does the WestRock Company Consolidated Pension Plan specifically calculate the Normal Retirement Benefit for its employees, and what considerations should employees be aware of regarding the Final Average Pay calculation used by WestRock Company?

Normal Retirement Benefit Calculation: The WestRock Company calculates the Normal Retirement Benefit based on the employee's Final Average Pay. This is defined as the average of the employee's highest five years of earnings over the last ten years of employment before termination. Earnings included in the Final Average Pay are most wages, bonuses, commissions, and amounts deferred under the company’s 401(k) plan. Employees should be aware that earnings after December 31, 2015, are excluded unless they qualify under the Rule of 75(WestRock Company_Issued…).

What are the specific eligibility requirements for the Disability Retirement Pension under the WestRock Company plan, and how does this differ for Legacy Mead and Legacy Westvaco participants within the WestRock Company workforce?

Disability Retirement Pension Eligibility: To qualify for a Disability Retirement Pension, an employee must have earned at least five years of Vesting Service and be deemed "totally and permanently disabled" according to specific criteria. Legacy Mead and Legacy Westvaco participants are subject to special rules detailed in the Legacy Supplement. Legacy Mead employees must apply separate criteria from Legacy Westvaco employees(WestRock Company_Issued…).

In what ways can employees at WestRock Company manage and maximize their Vesting Service to ensure they receive the full benefits from the companyâ€™s pension plan, particularly for those with interrupted service or re-employment?

Vesting Service Maximization: WestRock employees can manage their Vesting Service by ensuring that they complete at least five years of service, which guarantees their right to pension benefits. Employees with interrupted service can still receive credit for Vesting Service if they return within five years. Additionally, employees who leave and return within a year will receive credit for the time they were absent(WestRock Company_Issued…).

How does the WestRock Company handle the transition of benefits for employees who transfer between different positions within the company, and what impacts could this have on their eventual retirement benefits?

Transfer Between Positions: When WestRock employees transfer between different positions, their retirement benefit is calculated based on the greater of two methods. The first method calculates the benefit accrued at each position separately, while the second method applies the total benefit service across positions. Vesting Service is always combined, regardless of location or position(WestRock Company_Issued…).

How does the WestRock Company plan ensure that pension benefits are protected, particularly through the Pension Benefit Guaranty Corporation (PBGC), and what should employees know about their rights and guarantees under this insurance?

Pension Benefit Protection (PBGC): The WestRock Pension Plan is insured by the Pension Benefit Guaranty Corporation (PBGC). This federal insurance guarantees that employees will receive their vested pension benefits even if the plan is terminated. Employees should understand that PBGC coverage has limits, and benefits might be reduced under certain circumstances(WestRock Company_Issued…).

What are the consequences for WestRock Company employees who choose to withdraw from their pension plan or to rollover their benefits upon retirement or termination? How can they navigate these options effectively to avoid penalties?

Withdrawals and Rollovers: Employees can withdraw or roll over their pension benefits upon retirement or termination. Lump-sum withdrawals may be subject to taxes unless rolled over into a qualifying retirement account. Employees should consult the WestRock Benefits Center to avoid penalties and ensure compliance with federal tax regulations(WestRock Company_Issued…).

How does the WestRock Company maintain compliance with federal regulations and best practices under ERISA, and what specific rights do employees have concerning their pension benefits?

ERISA Compliance: WestRock complies with the Employee Retirement Income Security Act (ERISA), ensuring that employees' pension rights are protected. Employees have the right to receive information about their benefits, act prudently, and enforce their rights through the claims and appeals process outlined in the plan(WestRock Company_Issued…).

What resources are available to employees of WestRock Company for understanding their benefits under the Consolidated Pension Plan, and how can they utilize these resources to ensure they make informed decisions about their retirement?

Resources for Understanding Benefits: WestRock provides employees access to the WestRock Benefits Center, where they can obtain information on their pension plan. Employees are encouraged to review the Summary Plan Description and consult with the Benefits Center for clarification on their benefits and to make informed retirement decisions(WestRock Company_Issued…).

How will the integration of employee benefits from various company acquisitions impact current staff at WestRock Company, and what steps is the company taking to communicate these changes effectively to its employees?

Impact of Acquisitions on Benefits: WestRock has acquired various companies over time, and employees from these acquisitions may have different pension rules applied to them. WestRock takes steps to integrate these employees and communicates any changes through the WestRock Benefits Center. Special rules may apply based on the previous employer’s pension plan(WestRock Company_Issued…).

How can employees of WestRock Company get in touch with the WestRock Benefits Center to seek clarification about the Summary Plan Description, and what are the best practices to follow when requesting information regarding their pension plan?

Contacting the Benefits Center: Employees can contact the WestRock Benefits Center for clarification on the Summary Plan Description. Best practices include having detailed questions prepared, reviewing the SPD in advance, and requesting copies of documents or forms that clarify specific aspects of their pension plan(WestRock Company_Issued…).