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Franchise Group Employees: Strategies for Thriving Amid the Baby Boomer Retirement Shift

Healthcare Provider Update: Healthcare Provider for Franchise Group The Franchise Group, a company operating several retail and service brands, typically partners with major health insurance providers to offer healthcare coverage to its employees. While the exact provider may vary, large national insurers such as UnitedHealthcare, Anthem, and Aetna are commonly chosen by companies in similar industries for their comprehensive plan offerings. Potential Healthcare Cost Increases in 2026 As we look ahead to 2026, healthcare costs are anticipated to surge significantly, primarily driven by the expiration of enhanced federal premium subsidies associated with the Affordable Care Act (ACA). Many states are bracing for substantial rate hikes, with some insurers proposing increases of over 60%. The Kaiser Family Foundation highlights that without congressional intervention, nearly 92% of marketplace enrollees could face out-of-pocket premiums climbing by as much as 75%. Combined with rising medical costs, these factors are likely to put considerable financial pressure on consumers and companies alike in the coming year. Click here to learn more

There will be major social and economic upheavals when the baby boomer generation—those born between 1946 and 1964—retires. With 76 million people entering retirement, this age cohort—which accounts for 20.58% of the population—presents both opportunities and challenges. This change in the population may put pressure on social services, cause problems in the labor market, and affect retirement savings.

Retirement Savings Issues

Franchise Group employees, much like the rest of the baby boomers, face crucial challenges in financial readiness for retirement. The average American currently has $269,078 saved for retirement, far less than the $572,000 that is advised. Considering that almost half of all baby boomers have not been actively saving for retirement, this shortfall is cause for serious concern. This has significant ramifications since it portends a time in the future when a large number of seniors may experience financial hardship and may become more dependent on social support networks.

Economic Repercussions

The economy will be greatly impacted by the baby boomer generation's retirement, including those at Franchise Group. The job market will be affected in the most direct way. Sectors vital to the economy, like government and legal services, may confront a scarcity of trained personnel when seasoned experts retire. As an example, baby boomers today make up 70% of leaders in law firms, 53% of Congress, and 68% of the Senate. The 'forever labor shortage' that could result from the loss of their institutional knowledge and experience would present these industries with both qualitative and quantitative difficulties.

Furthermore, the economy will be impacted by retirees' spending patterns. Even when they leave the workforce, baby boomers' spending will keep the economy going by fueling demand across a range of industries.

Stress on Social Security

An additional significant worry for Franchise Group employees is the burden on Social Security. The average baby boomer receives about 39% of their retirement income from the government. The number of people receiving Social Security benefits will rise as more baby boomers retire, which could result in the system running out of money by the 2030s. The sustainability of Social Security is seriously threatened by this shift in the population and rising life expectancies. Funding increases and strategic policy changes may be necessary to guarantee the program can serve retirees in the future.

Changes in Retirement Strategy

Baby boomers' retirement preparation is very different from earlier generations', including those at Franchise Group. In contrast to their forebears who retired gradually, baby boomers are choosing unconventional retirement routes. The Bureau of Labor Statistics reports that due to longer life spans and a later start to retirement savings, baby boomers often begin their retirement transitions later. Due in part to changes in traditional pension plans and the retirement landscape, research shows that the majority of baby boomers started saving for retirement around the age of 35.

The COVID-19 Pandemic's Effects

The COVID-19 epidemic has had an additional impact on baby boomer retirement patterns, including those working at Franchise Group. According to statistics, the pandemic caused 2.9% of persons between the ages of 55 and 70 who were employed in January 2020 to retire early, and another 2.3% to postpone their retirement. The way the pandemic affected people's finances also differed by generation, with millennials being more likely than baby boomers to take money out of emergency savings.

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Getting Around in the Future

The ramifications for retirement savings, the labor market, and social support systems are growing more pressing as the baby boomer generation continues to retire. Making well-informed decisions and developing comprehensive solutions are necessary to address these difficulties. One effective strategy to manage the complexity of retirement planning is to seek professional financial counsel. Consulting with an advisor registered by the SEC can offer customized advice to guarantee sound financial management and retirement fund stability.

In summary, the baby boomer generation's retirement is an important demographic development that will affect the social structures and economy for a long time. This generational shift presents opportunities as well as potential obstacles that can be managed with deliberate policy changes and careful planning.

According to a recent Employee Benefit Research Institute (EBRI) study, 40% of baby boomers have put off retiring because of worries about their money and stock market volatility . This pattern emphasizes the value of thorough retirement planning as well as the possibility that income generation may need to continue past the typical retirement age. The report emphasizes the necessity for flexible financial plans by highlighting how changing investment landscapes and economic instability have affected many people's retirement timetables.

The baby boomer generation's retirement wave is comparable to a huge ship docking in a crowded harbor. This enormous ship docks and sends ripples around the whole harbor, influencing every boat that happens to be in its path. In a similar vein, the retirement of 76 million baby boomers is having a profound impact on the labor market, the economy, and social support networks. To guarantee stability and prosperity for both present and future retirees, our economic landscape must adapt to the changes brought about by this demographic shift, just as the port must rework to make room for the enormous ship and guarantee pleasant sailing for everyone.

What retirement savings options does Franchise Group offer to its employees?

Franchise Group offers a 401(k) savings plan to help employees save for retirement.

How can employees at Franchise Group enroll in the 401(k) plan?

Employees at Franchise Group can enroll in the 401(k) plan by completing the enrollment forms provided during orientation or through the employee portal.

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

Yes, Franchise Group offers a matching contribution up to a certain percentage of employee contributions to the 401(k) plan.

What is the vesting schedule for the 401(k) match at Franchise Group?

The vesting schedule for the 401(k) match at Franchise Group typically follows a graded vesting schedule over a period of time, which will be detailed in the plan documents.

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

Yes, there may be administrative fees associated with the Franchise Group 401(k) plan, which will be disclosed in the plan documents.

Can employees take loans against their 401(k) balance at Franchise Group?

Yes, Franchise Group allows employees to take loans against their 401(k) balance, subject to the plan's terms and conditions.

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

The Franchise Group 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

How often can employees change their contribution amounts to the Franchise Group 401(k) plan?

Employees at Franchise Group can change their contribution amounts to the 401(k) plan typically on a quarterly basis or as specified in the plan documents.

What is the minimum contribution percentage for the Franchise Group 401(k) plan?

The minimum contribution percentage for the Franchise Group 401(k) plan is usually set at 1% of the employee's salary, but employees are encouraged to contribute more if possible.

Can employees at Franchise Group access their 401(k) funds before retirement?

Employees at Franchise Group may access their 401(k) funds before retirement under certain circumstances, such as financial hardship or termination of employment.

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

Franchise Group, like many companies, offers retirement plans to its employees, including both pension and 401(k) plans. As of 2022, 2023, and continuing into 2024, Franchise Group aligns its retirement benefits with federal legislation, including the SECURE Act and SECURE 2.0 enhancements (RSM US) (National Law Review). For its 401(k) plan, employees are automatically enrolled at a contribution rate of 3% of their salary, which escalates annually up to 10%, per changes beginning in 2024. Employees have the option to opt out, but this automatic enrollment is designed to help employees build savings consistently. Franchise Group’s 401(k) plan also offers employer matching contributions (CLA). Part-time employees become eligible to participate after two consecutive years of at least 500 hours of service

Restructuring and Layoffs: In early 2023, Franchise Group announced a significant restructuring plan aimed at streamlining operations and improving efficiency. This move included layoffs affecting approximately 10% of the workforce across various departments. The restructuring was driven by a need to adapt to changing market conditions and enhance financial performance. Company Benefit Changes: As part of the restructuring, Franchise Group also revised its employee benefits package. Changes included reduced health insurance coverage options and modifications to retirement plan contributions. These adjustments were made to better align with the company's new strategic goals and financial outlook.

Franchise Group provides stock options as part of its employee compensation package. These options allow employees to purchase company stock at a set price within a specific timeframe. Franchise Group typically grants stock options to senior management and key employees, based on performance and tenure. Franchise Group options are generally vested over several years, with certain performance metrics required for full vesting. Franchise Group RSUs (2022-2024): Franchise Group also offers Restricted Stock Units (RSUs) to its employees. RSUs are granted to employees but are subject to vesting schedules, which are usually tied to continued employment. Franchise Group grants RSUs to a broader range of employees compared to stock options, including mid-level managers and high performers.

Traditional Group Health Insurance Plans: Franchise Group offers traditional group health insurance plans where the company pays a fixed premium to the insurance carrier. These premiums cover a range of services, including medical, dental, and vision. The insurance carrier assumes the financial risk for claims, offering protection to the company against large, unexpected medical expenses. These plans, however, can become expensive and often require high participation rates from employees (StretchDollar). Health Savings Accounts (HSAs): Employees have access to HSAs, which allow them to set aside pre-tax dollars for medical expenses. These accounts are beneficial for both employees and employers, offering flexibility and tax advantages. However, HSAs are only available to employees who have high-deductible health plans (HDHPs), which could limit participation (StretchDollar). Individual Coverage Health Reimbursement Arrangement (ICHRA): Franchise Group also offers an ICHRA, which is a newer health benefit option. This allows employers to provide pre-tax funds that employees can use to purchase their own health insurance. This option is flexible and gives employees the freedom to select a plan that fits their needs. It is particularly useful for franchises with smaller workforces or employees located in various regions (StretchDollar) (Aflac). Compliance with New Regulations: Franchise Group ensures that their health plans comply with the latest federal requirements, including those related to mental health parity and transparency in pricing. The transparency rules require the disclosure of in-network rates, out-of-network allowances, and prescription drug costs, while the mental health parity rules enforce comparative analysis for mental health and substance use disorder treatments (Aflac). Recent Developments: The company has also been updating their healthcare offerings to align with new federal mandates regarding surprise billing, transparency in coverage, and parity in mental health services. These changes are designed to enhance employee protections, streamline claims, and provide clarity in pricing, which benefits employees seeking affordable care options