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Unlocking the Power of Financial Literacy: A Guide for Eversource Energy Employees Approaching Retirement

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Healthcare Provider Update: Employees receive medical, prescription, dental, and vision coverage, with HSA contributions for high-deductible plans. The Med-Vantage Plan offers post-employment HRA contributions, making ACA planning relevant for retirees Click here to learn more

Financial literacy is essential as you navigate the waters of retirement readiness, influencing your ability to manage the complexities of retirement planning effectively. A recent survey by the  Global Financial Literacy Excellence Center (GFLEC) and the TIAA Institute highlights  knowledge gaps that significantly impact retirement outcomes.


One of the survey's critical questions involved the optimal strategy for enhancing retirement savings through employer-sponsored plans. Consider the scenario where Latisha, planning to set aside $2,000 annually for retirement, benefits from her company’s match up to $5,000 per year in a 401(k) plan. Both an IRA and a 401(k) offered a 5% return, but the poll indicated that investing in the 401(k) was the better choice for Latisha to leverage the full employer match, culminating in a substantially larger year-end balance of $4,200, as opposed to $2,100 via an IRA.

This example underscores the importance of understanding Eversource Energy retirement benefits and the tangible impact of financial decisions. Additionally, the survey revealed that only 42% of participants knew that Social Security benefits are calculated based on the 35 highest-paid years of employment, not just the last two.

The survey results show a concerning disparity: a mere 75% of those who correctly answered four out of five questions felt prepared for retirement, versus 41% of those who answered none. This indicates a strong link between financial knowledge and confidence in achieving a comfortable retirement.

Financial literacy encompasses more than academics; it involves a deep understanding of various fields, including human psychology and econometrics. For instance, deciding when to start receiving Social Security benefits involves weighing nearly a hundred different factors. The complexity of these decisions highlights the critical nature of thorough financial preparation and education.


Being financially literate is not just about knowledge; it’s about being ready to seize opportunities. The famed investor Benjamin Graham, renowned for his book 'The Intelligent Investor' and mentoring Warren Buffet, emphasized the importance of preparedness and discipline as key drivers behind successful investments and major decisions.

Consulting with a certified financial planner can provide guidance and clarity for those overwhelmed by the depth of knowledge required. Financial planners are adept at crafting a personalized plan that aligns with each client’s unique financial goals and circumstances.

April is National Financial Literacy Month, an excellent time to assess your financial health. In support of this initiative, MarketWatch releases a series of 'Financial Fitness' articles that offer practical financial planning tips and encourage readers to evaluate their investment and saving strategies.

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Understanding the basics of retirement planning and the nuances of investment options can significantly impact your financial stability in later years. The TIAA Institute and GFLEC survey serves as a potent reminder of the need for ongoing learning and engagement with financial concepts.

It is vital for Eversource Energy employees, especially those nearing retirement, to be vigilant against common tax scams. The IRS warns that scammers often target retirees, posing as IRS officials to extract immediate payment or personal information through social media, emails, or phone calls. Employees should know that the IRS will never contact them through these mediums for private information. Always verify the authenticity of any communication through official IRS channels. This advice is particularly crucial during tax season when scammer activity increases.

Navigating retirement planning is like steering a ship through unfamiliar waters, and Eversource Energy employees on the brink or in the midst of retirement must become adept in their financial landscape. This includes maximizing a 401(k) and understanding Social Security intricacies, but also being acutely aware of the deceptive currents of tax scams targeting retirees. Armed with financial knowledge and vigilance against scams, retirees should, like seasoned captains, navigate these challenging waters with a reliable map and sharp lookout.

What is the Eversource Energy 401(k) Savings Plan?

The Eversource Energy 401(k) Savings Plan is a retirement savings plan that allows employees to save a portion of their salary on a pre-tax or after-tax basis, helping them build a financial foundation for retirement.

How can I enroll in the Eversource Energy 401(k) Savings Plan?

Employees can enroll in the Eversource Energy 401(k) Savings Plan through the company's benefits portal or by contacting the HR department for assistance.

What is the employer match for the Eversource Energy 401(k) Savings Plan?

Eversource Energy offers a competitive employer match to encourage employee participation in the 401(k) Savings Plan. Specific matching contributions can vary, so it's best to check the plan documentation for details.

Can I change my contribution rate to the Eversource Energy 401(k) Savings Plan?

Yes, employees can change their contribution rate to the Eversource Energy 401(k) Savings Plan at any time through the benefits portal or by contacting HR.

What investment options are available in the Eversource Energy 401(k) Savings Plan?

The Eversource Energy 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock, allowing employees to tailor their investment strategy.

Is there a vesting schedule for the Eversource Energy 401(k) Savings Plan?

Yes, the Eversource Energy 401(k) Savings Plan has a vesting schedule for employer contributions. Employees should refer to the plan documents for specific details on the vesting timeline.

What happens to my Eversource Energy 401(k) Savings Plan if I leave the company?

If you leave Eversource Energy, you have several options regarding your 401(k) Savings Plan, including rolling over your balance to another retirement account, cashing out, or leaving it in the plan if permitted.

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

Yes, Eversource Energy allows employees to take loans from their 401(k) Savings Plan, subject to certain conditions and limits. Employees should review the plan's loan policy for more information.

Are there hardship withdrawals available in the Eversource Energy 401(k) Savings Plan?

Yes, Eversource Energy permits hardship withdrawals from the 401(k) Savings Plan under specific circumstances. Employees must meet certain criteria to qualify for a hardship withdrawal.

How often can I review my Eversource Energy 401(k) Savings Plan statements?

Employees can review their Eversource Energy 401(k) Savings Plan statements quarterly, and they can also access their account information online at any time.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Eversource Energy offers comprehensive employee pension and 401(k) plans for its employees, focusing on both financial security and long-term retirement benefits. Eversource Energy's pension plan is accessible through their PensionConnect platform. Employees participating in the Eversource Pension Plan can manage their accounts via the platform, which has been updated with enhanced security since January 2019​ (EHR.com). In addition to the pension plan, Eversource Energy offers a 401(k) plan, which includes a 100% match on the first 3% of employee contributions. An additional employer contribution, known as KVantage, is based on both the employee's age and years of service, and ranges from 2.5% to 6.5%. For employees over the age of 40, the MedVantage program provides an annual $1,000 contribution to a Health Reimbursement Account (HRA) for post-employment medical expenses
Restructuring Layoffs: Eversource has not announced any significant layoffs in 2023-2024, but the company remains vigilant in its operational adjustments to align with market conditions. Given the ongoing economic uncertainties, it's important for employees and stakeholders to stay informed about potential restructuring efforts that could impact job security and overall company strategy.
Eversource Energy provides its employees with both stock options and Restricted Stock Units (RSUs) as part of their compensation packages. The specific stock options and RSUs available at Eversource Energy are designed to align employee interests with those of shareholders, incentivizing long-term company performance. The stock options granted by Eversource Energy typically include the right to purchase company stock at a predetermined price, often based on the market value at the time of the grant. Employees generally must meet certain vesting conditions, such as continued employment over a specified period, to exercise these options. RSUs, on the other hand, are company shares granted to employees, which also vest over time. Once vested, the RSUs are converted into actual shares of Eversource Energy stock, which the employee can then hold or sell. As of 2022, 2023, and 2024, these stock options and RSUs have been made available to a broad range of employees within the company, primarily focusing on executive-level staff and those in key positions critical to the company's success. The specific eligibility criteria, vesting schedules, and grant amounts vary based on the employee's role and performance.
Eversource Energy offers a comprehensive set of health benefits designed to support the well-being of its employees. The company's health benefits for the years 2022, 2023, and 2024 include a variety of plans such as medical, prescription, dental, and vision coverage. Employees have access to Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), which allow them to manage healthcare expenses with tax advantages. Eversource is also known for its wellness program, which incentivizes employees and their spouses to adopt and maintain healthy lifestyles. The program includes access to wellness resources, often powered by platforms like Virgin Pulse, and offers rewards for participation in health-related activities. Additionally, Eversource has specific provisions for employees facing serious health conditions. For instance, the company offers protections against service shut-offs for households with members facing life-threatening conditions or serious illnesses. These protections extend through specific periods and require certification from a medical professional.
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For more information you can reach the plan administrator for Eversource Energy at , ; or by calling them at .

https://creativeplanning.com/insights/financial-planning/how-to-use-the-net-unrealized-appreciation-nua-strategy-in-your-401k/ https://bogartwealth.com/nua-strategy/ https://www.taxfavoredbenefits.com/resource-center/retirement/net-unrealized-appreciation-nua-explained https://energyandpolicy.org/utilities-executive-compensation-analysis-eversource/ https://www.eversource.com/content/residential/about/investors/annual-reports-10k https://www.plansponsor.com/eversource-energy-agrees-to-settle-401k-lawsuit-for-15-million/ https://www.marketbeat.com/stocks/NYSE/ES/chart/#google_vignette https://chatgpt.com/c/46e93977-6963-48d9-b476-ac075279479c https://www.kiplinger.com/ https://westfaironline.com/energy/eversource-energy-contemplates-sale-of-aquarion-water/ https://www.eversource.com/content/docs/investors/eversource-osw-sale-agreement-press-release-feb-13-24.pdf?sfvrsn=2c5a024c_1 https://nu.ehr.com/Shared/Account/LogOn?ReturnUrl=%2f https://www.thelayoff.com/t/1jVlfl48 https://www.pentegra.com/current-thinking/retirement-industry-trends-and-marketplace-expertise/whats-the-deal-with-cash-balance-plans/ https://pitchbook.com/profiles/limited-partner/62861-41

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