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

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Is Renting the Right Choice for ArcBest Employees as They Transition into Retirement?

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Healthcare Provider Update: Healthcare Provider for ArcBest ArcBest provides health insurance through a partnership with multiple insurance carriers, primarily using the services of UnitedHealthcare (UHC) along with several other insurers depending on the specific plan options available to their employees. Potential Healthcare Cost Increases in 2026 In 2026, ArcBest employees and retirees may face significant healthcare cost increases as marketplace premiums are projected to surge, with some states experiencing hikes of more than 60%. The anticipated expiration of enhanced federal premium subsidies poses a crucial risk, potentially leading to a staggering 75% rise in out-of-pocket premiums for many enrollees. As employers, including ArcBest, reconsider their benefit structures amidst rising medical costs and shrinking wage growth, employees should prepare for possible changes in deductibles and out-of-pocket maximums. This evolving landscape underscores the importance of early planning and informed decision-making in navigating the forthcoming financial challenges related to healthcare coverage. Click here to learn more

As retirement approaches, ArcBest employees face the critical decision of whether to buy or rent a property. Downsizing from a larger family home can have significant financial and lifestyle impacts, especially if maintaining the property has become burdensome or costly.

Comparing the Costs of Buying and Renting

One of the primary benefits of selling a larger home and opting to rent is the potential for financial freedom. For instance, selling a home for $300,000 and investing the proceeds at a 6% annual return could yield $18,000 in the first year. This amount can substantially offset rental costs after taxes, reducing or eliminating the ongoing expenses of homeownership.

Renting offers flexibility in addition to financial advantages. For ArcBest employees uncertain about their permanent residence or considering relocation within the next three to five years, renting is a practical choice. It avoids the financial risks associated with real estate market fluctuations, where temporary home appreciation might not cover upfront costs such as real estate commissions and closing fees.

Assessing Available Housing

When deciding whether to buy or rent in retirement, it's crucial to evaluate your projected lifestyle needs and financial situation. Comparing the annual rent for similar properties in your area with home prices can provide valuable insights. Utilize resources like NerdWallet.com's Rent vs. Buy calculator to make an informed decision.

Benefits and Drawbacks of Buying vs Renting

Leasing:

  1. Flexibility to relocate

  2. No responsibility for upkeep or repairs

  3. Lower utility and insurance costs

  4. No need for a substantial down payment

  5. Risk of eviction if the property is sold

 

Owning:

  1. Stability of long-term residence

  2. Potential to build home equity

  3. Maintenance and property tax expenses

  4. Potential financial loss if the market declines

  5. Capital gains tax implications on sale

Retirement Mortgages

For ArcBest employees considering homeownership in retirement, obtaining a mortgage should not be dismissed. Given the current economic climate with variable mortgage rates and a competitive housing market, a strategic approach is advisable: consider financing part of the purchase and investing the remainder. This method keeps funds liquid for other needs like healthcare, potentially yielding higher returns from investments than home appreciation.

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Additionally, the emotional aspects of this decision are significant. Homeownership offers a sense of security and fulfillment, while renting in a retirement community can provide a stress-free living environment without the concerns of home maintenance.

Trends in the Housing Market Right Now

Rising mortgage interest rates and limited housing inventory have complicated the home-buying process. Conversely, rental markets are stabilizing as price increases return to pre-pandemic levels, offering renters more predictable costs.

In conclusion, ArcBest employees should base their decision to buy or rent in retirement on personal preferences and sound financial judgment. The choice ultimately depends on individual financial situations, desired lifestyle, and long-term stability. Both options have distinct pros and cons. Thorough research will ensure your retirement living arrangements enhance your quality of life.

Retirees considering renting should understand the benefits of age-restricted communities. These communities often provide amenities and services tailored for seniors, such as social events, on-site medical facilities, and transportation services. A study by the American Seniors Housing Association published in January 2021 found that residents in these communities report higher satisfaction and a greater sense of community compared to those in non-age-restricted settings, significantly enhancing retirement quality of life.

Choosing between a luxurious cruise and purchasing a vacation home is analogous to deciding whether to buy or rent in retirement. Renting offers the flexibility and freedom to experience diverse locations without maintenance worries, similar to the benefits of a cruise. On the other hand, purchasing a home entails a significant initial investment and ongoing maintenance, akin to owning a vacation home, but provides stability and familiarity. The choice depends on an individual’s lifestyle preferences, financial circumstances, and desire for flexibility or permanence in their retirement years.

What is the ArcBest 401(k) plan?

The ArcBest 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck on a tax-deferred basis to help secure their financial future.

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

Employees can enroll in the ArcBest 401(k) plan through the company’s benefits portal during open enrollment or within 30 days of their hire date.

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

Yes, ArcBest offers a company match for employee contributions to the 401(k) plan, which helps employees grow their retirement savings.

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

The maximum contribution limit for the ArcBest 401(k) plan follows the IRS guidelines, which may change annually. Employees should check the latest IRS limits for the current year.

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

Employees at ArcBest can start contributing to the 401(k) plan after they have completed their eligibility period, typically within their first month of employment.

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

The ArcBest 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Can employees take loans against their ArcBest 401(k) plan?

Yes, employees may have the option to take loans against their ArcBest 401(k) plan, subject to specific terms and conditions outlined in the plan document.

What happens to my ArcBest 401(k) if I leave the company?

If you leave ArcBest, you can choose to roll over your 401(k) balance to another retirement account, leave it in the ArcBest plan (if eligible), or cash it out, though cashing out may incur taxes and penalties.

How does ArcBest ensure the security of my 401(k) savings?

ArcBest takes the security of your 401(k) savings seriously by partnering with reputable financial institutions and implementing strong data protection measures.

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

Yes, there may be administrative fees associated with the ArcBest 401(k) plan, which are disclosed in the plan documents provided to employees.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
ArcBest announced a strategic restructuring plan aimed at streamlining operations and improving efficiency. This plan includes workforce reductions across various departments. The company also plans to make adjustments to its employee benefits package to align with the new operational model.
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For more information you can reach the plan administrator for ArcBest at 8401 McClure Dr Fort Smith, AR 72916; or by calling them at (479) 785-6000.

*Please see disclaimer for more information

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