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

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Navigating Retirement Challenges: What Rocket Companies Employees Need to Know About the Upcoming Pension Freeze

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Healthcare Provider Update: Healthcare Provider for Rocket Companies For employees of Rocket Companies, the primary provider of health insurance is the UnitedHealthcare (UHC) network. This collaboration allows Rocket employees access to a comprehensive range of health plan options that align with federal healthcare regulations and enhance overall employee wellness. Potential Healthcare Cost Increases in 2026 Looking ahead to 2026, healthcare costs are poised for significant increases, primarily driven by the anticipated expiration of expanded subsidies for Affordable Care Act (ACA) premiums, along with overarching medical inflation. It is projected that ACA premiums could rise dramatically, with some regions facing hikes of over 60%. As a result, more than 22 million enrollees could see their monthly premiums skyrocket by 75% or more, effectively pricing out many middle-income Americans from affordable coverage options. The combination of these factors creates a challenging landscape for consumers, necessitating proactive financial planning to mitigate the impact of these steep increases. Click here to learn more

Recent research released by the Alliance for Lifetime Income reveals  a concerning outlook for Baby Boomers nearing retirement, including many within Rocket Companies. Approximately two-thirds of this demographic, set to turn 65 from 2024 to 2030, may face financial difficulties that could prevent them from maintaining their current lifestyle post-retirement. The disparities in financial readiness become starkly evident when dissecting the data by gender, ethnicity, and education.

Rob Shapiro, former undersecretary of commerce for economic affairs and author of the report, points out that of the 30.4 million Boomers entering retirement age, over 15 million will largely depend on Social Security for their income. This reliance is due to a significant number—52.5%—having assets totaling $250,000 or less, a figure that could see their resources deplete rapidly. Furthermore, an additional 14.6% hold assets under $500,000, insufficient for sustaining longer lifespans.

Addressing these concerns, Shapiro spoke at the National Press Club in Washington, D.C., highlighting that even the median retirement assets, when combined with Social Security, fail to uphold the standard of living that these Boomers are accustomed to. He emphasized the acute differences in retirement preparedness across different demographic groups, influenced by factors such as race and education, with gender also contributing.

Rocket Companies employees might consider exploring guaranteed income annuities as a viable supplement to Social Security, a recommendation supported by the Alliance for Lifetime Income. This nonprofit coalition includes notable financial entities like American International Group Inc. and J.P. Morgan Chase & Co., advocating for enhanced retirement readiness among the 'Peak 65' group in the U.S.

Jason Fichtner, executive director of the Retirement Income Institute at the Bipartisan Policy Center, stresses the importance of incorporating annuities into retirement plans. This move compensates for the decline in traditional defined benefit pensions and supports the 'three-legged stool' of retirement: employer-sponsored pensions, personal savings, and Social Security.

Shapiro's findings underscore significant disparities in retirement savings among different groups:

  1. Median savings for men are at $269,000, compared to $185,000 for women.

  2. White retirees typically have $299,000, whereas Black and Hispanic retirees have much lower savings, at $123,000 and $49,000 respectively.

  3. College graduates have saved about $591,000, far exceeding the $75,000 accumulated by those with only a high school diploma, and the scant $7,000 by those without any formal education.

 

Despite these challenges, Shapiro notes that home equity remains a substantial asset for many, which seniors prefer to retain as it keeps them connected to their communities and families.

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The gender gap in retirement savings, according to Shapiro, results from economic disparities faced by women during their working years, leading to reduced savings and less retirement security.

Panel discussions at the event also tackled the objections against annuities, such as perceived high costs and complexity. Yet, experts like William Gale from the Brookings Institution advocate for annuities as they provide a consistent income source throughout retirement.

Legislative efforts like the 2019 SECURE Act aim to improve transparency in retirement planning by requiring plans to show potential annuity income streams, enhancing participants' understanding.

With the increasing healthcare costs as a looming financial challenge for Baby Boomers nearing retirement, it's crucial for Rocket Companies employees to plan strategically.  A 2021 Fidelity Investments analysis highlighted  that a couple retiring at 65 would need about $300,000 saved post-taxes just for medical expenses, excluding long-term care.

In summary, as many Rocket Companies employees and other Baby Boomers approach retirement, they face a metaphorical sea of financial uncertainty. Strong financial planning, substantial retirement savings, and steady income streams are essential for navigating this challenging phase, providing confidence that they can continue to enjoy a comfortable and secure retirement life.

What type of retirement plan does Rocket Companies offer to its employees?

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

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

Yes, Rocket Companies provides a matching contribution to employee 401(k) contributions, helping employees save more for retirement.

What is the eligibility requirement to participate in the Rocket Companies 401(k) plan?

Employees of Rocket Companies are eligible to participate in the 401(k) plan after completing a specified period of service, typically within the first year of employment.

Can employees of Rocket Companies choose how to invest their 401(k) contributions?

Yes, employees at Rocket Companies can choose from a variety of investment options within the 401(k) plan to align with their retirement goals.

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

The maximum contribution limit for the Rocket Companies 401(k) plan is in accordance with IRS guidelines, which are updated annually.

Does Rocket Companies allow for catch-up contributions in its 401(k) plan?

Yes, Rocket Companies allows employees aged 50 and older to make catch-up contributions to their 401(k) plans.

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

Employees at Rocket Companies can change their 401(k) contribution amounts at designated times throughout the year, typically during open enrollment or as specified by the plan.

What happens to my 401(k) if I leave Rocket Companies?

If you leave Rocket Companies, you have several options for your 401(k) savings, including rolling it over to another retirement account, leaving it in the Rocket Companies plan, or cashing it out.

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

Yes, like most 401(k) plans, the Rocket Companies 401(k) plan may have administrative fees and investment-related expenses, which are disclosed in the plan documents.

Can employees take loans against their 401(k) at Rocket Companies?

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

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

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