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

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

Healthcare Provider Update: Offers medical plans through Blue Cross Blue Shield of Kansas City, dental, vision, FSAs, and CVS Caremark for pharmacy benefits 5. As ACA premiums increase, Evergys union and non-union plans provide consistent coverage and cost control for employees. Click here to learn more

As retirement approaches, Evergy 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 Evergy 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:

Flexibility to relocate
No responsibility for upkeep or repairs
Lower utility and insurance costs
No need for a substantial down payment
Risk of eviction if the property is sold

Owning:

Stability of long-term residence
Potential to build home equity
Maintenance and property tax expenses
Potential financial loss if the market declines
Capital gains tax implications on sale

Retirement Mortgages

For Evergy 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.

Featured Video

Articles you may find interesting:

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, Evergy 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 purpose of Evergy's 401(k) Savings Plan?

The purpose of Evergy's 401(k) Savings Plan is to help employees save for retirement by providing a tax-advantaged way to invest a portion of their income.

How can I enroll in Evergy's 401(k) Savings Plan?

You can enroll in Evergy's 401(k) Savings Plan by accessing the employee benefits portal or contacting the HR department for enrollment instructions.

What types of contributions can I make to Evergy's 401(k) Savings Plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and, if eligible, catch-up contributions to Evergy's 401(k) Savings Plan.

Does Evergy offer a company match for contributions made to the 401(k) Savings Plan?

Yes, Evergy offers a company match on employee contributions to the 401(k) Savings Plan, which helps enhance your retirement savings.

What is the vesting schedule for the company match in Evergy's 401(k) Savings Plan?

The vesting schedule for the company match in Evergy's 401(k) Savings Plan typically follows a graded vesting schedule, which means you earn ownership of the match over a period of time.

How often can I change my contribution amount to Evergy's 401(k) Savings Plan?

You can change your contribution amount to Evergy's 401(k) Savings Plan at any time, subject to the plan's rules and limits.

Are there any fees associated with Evergy's 401(k) Savings Plan?

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

What investment options are available in Evergy's 401(k) Savings Plan?

Evergy's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

How can I access my account information for Evergy's 401(k) Savings Plan?

You can access your account information for Evergy's 401(k) Savings Plan through the plan's online portal or by contacting the plan administrator.

Can I take a loan from my Evergy 401(k) Savings Plan?

Yes, Evergy's 401(k) Savings Plan allows participants to take loans under certain conditions, subject to the plan's rules and limits.

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

For Evergy, the company offers both a pension plan and a 401(k) plan for its employees. The Evergy pension plan, often referred to as the defined benefit plan, requires employees to meet certain years of service and age qualifications to become eligible. The pension formula is based on the final average pay and years of service, which is typical for defined benefit plans. Non-union employees are generally enrolled in the 401(k) plan, which includes company matching contributions. The Evergy 401(k) Savings Plan, established in 1988, is the primary retirement savings option for non-union employees, while some union employees may still have access to a traditional pension plan. The specific eligibility, contribution limits, and matching details are provided in the company’s benefits documentation, typically through internal HR portals or detailed benefits guides.

Restructuring and Layoffs: Evergy announced a restructuring plan in early 2024 aimed at optimizing its operational efficiency. The plan included a reduction of approximately 5% of its workforce across various departments. This move was intended to streamline operations and reduce costs amid fluctuating energy prices and regulatory changes. Source: Bloomberg

Evergy grants stock options and RSUs as part of its employee compensation package. According to Evergy's 2022 Annual Report (Source: Evergy 2022 Annual Report, Page 45), stock options are typically offered to senior executives and key employees. RSUs are also granted to attract and retain talent, with specific vesting schedules outlined in the report. Evergy utilizes stock options and RSUs to align employee interests with company performance. The 2022 Compensation Disclosure (Source: Evergy 2022 Proxy Statement, Page 32) details that stock options are granted at an exercise price equal to the fair market value on the grant date. RSUs are granted based on performance metrics and time-based vesting criteria. In 2023, Evergy continued to offer stock options and RSUs as part of its compensation strategy. According to the 2023 Annual Report (Source: Evergy 2023 Annual Report, Page 50), stock options are given to senior management and high-performing employees. RSUs are awarded based on individual and company performance metrics.

Evergy offers a comprehensive health benefits package designed to support the well-being of its employees and their families. Their benefits include a choice of medical, dental, and vision plans, as well as life and accident insurance, long-term disability, and flexible spending accounts for medical and dependent care. The medical plans are administered through Blue Cross Blue Shield of Kansas City, and Evergy also offers SavRx for union employees as a pharmacy benefit plan (evergy.com) (Evergy | Newsroom). Specific healthcare-related acronyms used by Evergy include FSA (Flexible Spending Account) and HSA (Health Savings Account), both of which allow employees to set aside pre-tax dollars for medical expenses. Evergy’s health benefits include paid parental leave, which is part of their broader focus on work-life balance (evergy.com).

Additional Articles

Check Out Articles for Evergy employees

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

https://www.thelayoff.com/#google_vignette https://finance.yahoo.com/ https://www.bloomberg.com/asia https://www.reuters.com/ https://www.cnbc.com/world/?region=world https://www.ft.com/