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How First Horizon Employees Can Navigate Economic Shifts and Gain Financial Stability

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

First Horizon employees who are retiring in the middle of economic uncertainties need strategies that are specific to their financial situations,' says Tyson Mavar of The Retirement Group, a division of Wealth Enhancement Group.

Wesley Boudreaux of The Retirement Group, a division of Wealth Enhancement Group, explains that it is important for First Horizon employees to start planning for retirement early due to the change from pensions to 401(k)s.

1. Demographic Shifts and Financial Challenges: Examining the financial situation of the so-called 'peak boomers' as they move into retirement, focusing on their assets and reliance on Social Security.

2. Changes in Retirement Planning: Discussing the transition from pension plans that were partly funded by employers to defined contribution plans such as 401(k)s and its effects on the retirement security of different populations.

3. Economic Impact and Personal Stories: Discussing the overall impact of retiring baby boomers on the economy and personal stories that illustrate the problems that retirees face in supporting themselves and upholding middle-class standards.

This is a significant turning point in social change and this occurs when it comes to financial preparation for retirement. The Retirement Income Institute of the Alliance for Lifetime Income has revealed information about the 'peak boomers' who were born between 1959 and 1964 and are considered to be at risk. As the last of the baby boomers reach age 65, almost 30 million people are entering retirement and helping to define one segment of the population.

Among these baby boomers who are First Horizon employees, things look pretty dark from the economic standpoint. A shocking 52.5% have resources of $250,000 or less, which will not allow them to live without Social Security. Furthermore, another 14.6% have less than $500,000 in assets, meaning that most may not be able to fund their post retirement lifestyle and financial independence. These numbers suggest some difficulties since many seem unprepared for the financial requirements of later years.

The retirement planning has become more risky during the working years. The change from the guaranteed defined benefit plans, pensions to the defined contribution plans like the 401(k) has increased this vulnerability. Nevertheless, pensions are more favorable than the retirement savings gap along the lines of race, gender, and ethnicity. For instance, only 24% of the peak boomers have pensions and even those may be underfunded.

The overall effects of this demographic change are not only restricted to the elderly. The report estimates that as the peak boomers leave the workforce, 14.8 million jobs in manufacturing, healthcare, and education will be vacant, affecting economic productivity. Furthermore, a noticeable shift in consumer spending is expected, with an expected decline of $204 billion by 2032 compared to 2022, especially in the transportation sector.

These changes reveal a wider social problem:

The financial problems of pensioners. More than half of the Americans 65 years and older receive less than $30,000 a year, and many of them live on $10,000 – $19,000 a year. This is because 79.2% of retirees rely on Social Security as their main source of income.

The stories of retirees are real and they often sound worried about having enough money to last them the rest of their lives, which makes some feel like they must keep working for the rest of their lives. One retiree said, “There is only going to be one group of people that are going to have any dignity in their old age and that’s the very rich.” These are the severe realities which many people face.

This demands a social partnership for financial stability of the aging population and a reexamination of retirement savings frameworks. It is, therefore, important to approach retirement planning holistically to preserve the dignity and security of all retirees as the biggest cohort of baby boomers approaches retirement with multiple problems in their lives and their pockets.

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It is very important for retirees to know how to handle their finances after leaving the working world. These scams are especially aimed at older people and those who have large amounts of money in their retirement accounts. It further highlights scams based on fake tax bills or legal threats and advises one to be careful. First Horizon employees should especially avoid falling for phishing emails that are disguised as being from the IRS and ask for personal details or quick money. The IRS never reaches out to taxpayers through text messages, social media platforms, or emails regarding such matters.

Sources:

Statler, Jean. “Protected Retirement Income and Planning Study.” Protected Income, 2023, www.protectedincome.org . Accessed 3 Feb 2025.
Norman, Suzanne. “Despite Facing Greater Obstacles to Retirement Savings, Peak 65 Women Outpace Men in Prioritizing Lifetime Income for Retirement.” Protected Income, 2023, www.protectedincome.org . Accessed 3 Feb 2025.
Fichtner, Jason, and Bamji, Cyrus. “The Peak 65® Zone is Here, And Our Country is Not Prepared.” Protected Income, 2023, www.protectedincome.org . Accessed 3 Feb 2025.
Shapiro, Robert J. “Peak 65 Economic Impact Forum.” Protected Income, 2023, www.protectedincome.org . Accessed 3 Feb 2025.
Channel, Jacob. “Where You Need More Than $1 Million To Retire.” LendingTree, 2023, www.lendingtree.com . Accessed 3 Feb 2025.

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.

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

First Horizon National Corporation offers both a pension plan and a 401(k) plan to its employees. The First Horizon National Corporation Pension Plan is a defined benefit corporate pension fund that was established in 1946. This pension plan provides retirement, death, and disability benefits to eligible employees and their beneficiaries. The assets of the pension plan are managed by the Pension, Savings, and Flexible Compensation Committee, with First Tennessee Bank National Association serving as the trustee (PitchBook). In addition to the pension plan, First Horizon provides a 401(k) plan where employees can save for retirement with contributions matched by the company up to 6% of their pre-tax income. The 401(k) plan also includes various savings and money management tools, such as Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA), which allow employees to set aside pre-tax income for healthcare and dependent care expenses

Restructuring and Layoffs: In early 2024, First Horizon announced a significant restructuring plan aimed at streamlining operations and reducing costs. The bank plans to cut approximately 5% of its workforce over the next year as part of this initiative. This move is in response to increasing operational expenses and the need to enhance efficiency in a challenging economic environment. This news is particularly relevant as it reflects broader trends in the banking sector where institutions are adjusting their workforces to remain competitive amidst economic uncertainty.

First Horizon Corporation (FHN) provides a comprehensive employee stock option and Restricted Stock Unit (RSU) program aimed at retaining top talent and incentivizing long-term performance. First Horizon offers both stock options and RSUs to eligible employees, primarily those in executive or senior management roles. These awards generally vest over a period of three to five years, with specific performance metrics tied to company performance and stock price. Employees who meet certain job levels and performance criteria are eligible to participate in these equity compensation plans. In 2022, First Horizon offered RSUs that vest annually, providing employees with ownership stakes in the company. By 2023 and 2024, the bank continued this program with slight adjustments, including expanded eligibility and adjusted performance criteria (

First Horizon Health Benefits Overview Company Website: The official First Horizon website provides the most direct and accurate information. Glassdoor: This site often has employee reviews and details about health benefits, including recent changes or feedback from employees. Indeed: Similar to Glassdoor, Indeed might have employee reviews and specific information about health benefits and any recent updates. LinkedIn: Sometimes companies post updates about employee benefits or changes in health-related policies here. Benefits.gov: This site provides general information about employee benefits and might have relevant details or changes affecting First Horizon.