Healthcare Provider Update: First Horizon offers health, dental, and vision insurance tailored to individual and family needs. Employees benefit from HSAs, FSAs, disability coverage, and parental leave. The company provides a 401(k) with up to 6% matching, adoption reimbursement, and wellness programs. Additional perks include tuition reimbursement, mentoring, and digital wellness platforms3. First Horizon With ACA premiums projected to rise sharply, First Horizons employer-sponsored plans and financial wellness tools help employees avoid the volatility of marketplace costs. Their matched savings and flexible spending options provide a buffer against rising healthcare expenses. Click here to learn more
Achieving a financially robust retirement at First Horizon is increasingly challenging in a landscape marked by evolving retirement norms and economic unpredictability. Eric Henderson, the president of Nationwide Annuity, underscores these contemporary challenges. He contrasts the current situation—characterized by inflation and economic instability—with the secure retirements enjoyed by past generations, which were bolstered by stable pension plans. Henderson's insights, derived from Nationwide's studies, highlight the significant shift in retirement strategies and mindsets necessitated by these changes.
The Erosion of Traditional Safety Nets
Recent findings indicate a growing skepticism towards traditional retirement safety nets such as Social Security. Nationwide's research reveals that 27% of respondents anticipate receiving lower payments than initially expected, and 43% now rely less on Social Security. Moreover, 38% express concerns regarding the long-term viability of Social Security, prompting many First Horizon employees nearing retirement to reevaluate their strategies.
The Role of Work in Retirement at First Horizon
Financial insecurities have altered retirement planning; 41% of pre-retirees at First Horizon plan to extend their working years to supplement their retirement income. Additionally, 27% acknowledge the necessity of adopting a frugal lifestyle to achieve their retirement goals.
Adapting Financial Advisory Strategies
To navigate these uncertainties, financial advisors are revising their strategies designed to help their clients weather market fluctuations .
A significant 61% of advisors now recommend or use annuities to mitigate risks, a notable increase from just months prior. Annuities, asset diversification, and non-correlated investments are prominent tools, utilized by 79% and 77% of advisors respectively, to safeguard retirement savings.
Despite these protective measures, fewer than half of First Horizon pre-retiree investors are discussing crucial topics with their advisors, such as asset accumulation, tax planning, or the conversion of investments into retirement income. Alarmingly, only a small number are exploring optimal timings for Social Security benefits or planning for healthcare expenses—key elements for a secure retirement.
Insights from The Harris Poll and Nuveen
A comprehensive survey conducted by The Harris Poll on behalf of Nationwide, which included 2,346 investors and 518 advisors, sheds new light on the current state of retirement planning. The findings stress the urgent need for personalized retirement strategies among pre-retirees, especially those between the ages of 55 and 65, to successfully navigate today's challenging financial landscape.
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Furthermore, Nuveen's research underlines the importance of tailored benefits in maintaining workforce stability. According to their study, 70% of full-time American workers would consider changing jobs for better benefits, with older employees particularly valuing comprehensive retirement plans. This highlights the need for benefit customization to meet the diverse needs of First Horizon workforce.
Effective Design and Communication of Retirement Plans
Brendan McCarthy from Nuveen emphasizes the significance of well-crafted retirement plans and effective communication, especially for First Horizon employees, to ensure preparedness for retirement. The underutilization of benefits often stems from inadequate communication, which disproportionately affects minority groups. Nuveen advocates for inclusive communication strategies, including in-person meetings, workshops, and digital outreach, to ensure all employees are informed and can fully utilize their benefits.
Regulatory Updates and Their Implications
For First Horizon employees organizing their estate and retirement funds, recent IRS updates provide temporary relief regarding required minimum distributions (RMDs) for inherited IRAs. The Setting Every Community Up for Retirement Enhancement Act of 2019 initially required non-spouse beneficiaries to distribute their IRAs within ten years of inheritance. This rule has been temporarily modified, offering a grace period extending through 2024, after which permanent regulations are expected.
In Conclusion
The dynamic realm of retirement planning requires a deep understanding of financial instruments, regulatory changes, and personalized advisory services. Financial advisors play a pivotal role in devising strategies that ensure a secure and stable retirement for First Horizon employees, helping them manage complexities and lay a solid foundation for long-term financial health.
What type of retirement savings plan does First Horizon offer to its employees?
First Horizon offers a 401(k) retirement savings plan to help employees save for their future.
Does First Horizon provide matching contributions to the 401(k) plan?
Yes, First Horizon provides a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.
What is the eligibility requirement to participate in First Horizon's 401(k) plan?
Employees at First Horizon are eligible to participate in the 401(k) plan after completing a specific period of service, typically within the first year of employment.
How can employees at First Horizon enroll in the 401(k) plan?
Employees can enroll in First Horizon's 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
What investment options are available in First Horizon's 401(k) plan?
First Horizon offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.
Can employees at First Horizon take loans against their 401(k) balance?
Yes, First Horizon allows employees to take loans against their 401(k) balance under certain conditions, as outlined in the plan documents.
What is the vesting schedule for First Horizon's 401(k) matching contributions?
The vesting schedule for First Horizon's matching contributions typically follows a graded schedule, which means employees earn ownership of the match over a period of time.
Are there any fees associated with First Horizon's 401(k) plan?
Yes, there may be administrative fees associated with First Horizon's 401(k) plan, which are disclosed in the plan documents.
How often can employees at First Horizon change their 401(k) contribution amount?
Employees at First Horizon can change their 401(k) contribution amount at any time, subject to the plan's guidelines.
What is the maximum contribution limit for First Horizon's 401(k) plan?
The maximum contribution limit for First Horizon's 401(k) plan is set by the IRS and may change annually; employees should refer to the latest IRS guidelines for specifics.