Is Waiting Until Age 70 to Claim Social Security the Right Move for Hess Retirees?

Healthcare Provider Update: Healthcare Provider for Hess: For employees of Hess Corporation, the primary healthcare provider is UnitedHealthcare. This partnership allows Hess employees access to a comprehensive range of health services geared towards providing robust healthcare support. Potential Healthcare Cost Increases in 2026: In 2026, healthcare costs are anticipated to surge significantly for Hess employees due to a perfect storm of factors affecting the healthcare market. Record premium hikes in the Affordable Care Act (ACA) marketplace are expected, with some enrollees facing increases of over 75% if enhanced federal subsidies expire. Insurers are also projecting a sharp rise in medical costs, prompted by inflation and increased demand for services. This scenario could substantially impact out-of-pocket expenses for many employees, necessitating strategic planning and proactive healthcare management in the coming months. Click here to learn more

Hess employees who choose to defer their Social Security benefits are essentially investing in their future financial security; careful planning with the assistance of seasoned professionals like Wesley Boudreaux from The Retirement Group, a division of Wealth Enhancement Group.

Patrick Ray of The Retirement Group, a division of Wealth Enhancement Group, emphasizes the importance of integrating deferred Social Security with overall retirement strategy for Hess employees to ensure a comprehensive approach to achieving long-term financial independence.

In this article, we will discuss:

• 1. The financial benefits and increased monthly payouts  of deferring Social Security benefits for Hess employees, exploring how delaying claims can lead to significant increases in retirement income.
• 2. The potential drawbacks and necessary considerations  when postponing Social Security, including the impact on other retirement assets and tax implications.
• 3. Strategic planning for retirement , focusing on integrating Social Security with Medicare, market conditions, and personal circumstances to optimize retirement outcomes.
• Deciding when to start receiving Social Security benefits is a pivotal choice in the broader scope of retirement planning for Hess employees. This decision significantly affects an individual's ability to maintain financial freedom throughout their later years. As a benefit that is adjusted for inflation and shielded against the dual retirement risks of inflation and longevity, Social Security forms a crucial element of retirement income.
• For Hess employees looking to sustain their desired lifestyle and financial independence after retiring, it is vital to blend Social Security with other sources of retirement income like pensions and personal savings. Here is a detailed analysis of the benefits and drawbacks of deferring Social Security payments.

Benefits of Postponing Social Security

Deferring Social Security benefits until after reaching full retirement age can meaningfully enhance monthly payments. According to a January 2024 Social Security Administration report, delaying until age 70 may yield an approximate 8% annual increase—equating to about two-thirds of 1% for each month postponed. For Hess employees born before 1955, this could result in receiving up to 132% of their standard monthly benefit; those born later may see a slightly lower enhancement.

In tandem with these federal benefits, many Hess retirees also rely on company-sponsored retirement income. Hess previously offered a defined benefit pension plan, which included annuity and lump sum payout options, though these were frozen for new hires in favor of more portable plans. The Hess Corporation Employees’ Retirement Plan now primarily supports legacy employees. Today, most employees contribute to the Hess Savings Plan, a 401(k) plan managed by Fidelity, which includes a generous company match of up to 6%, subject to IRS contribution limits.

Deferring Social Security not only increases monthly payments but also raises the base used for Cost-of-Living Adjustments (COLAs). This is especially beneficial for Hess retirees receiving annuity payments or using Hess's lump sum options, as it aligns better with inflationary trends over time.

Another key consideration is the spousal survivor benefit. For married Hess retirees, delaying Social Security can increase the benefit passed on to a spouse, potentially offering more flexibility in legacy planning.

Possible Consequences of Delaying Social Security

However, waiting may not be ideal for everyone. Hess retirees considering a delay should weigh the impact on their other retirement assets. For example, tapping into their Hess 401(k) or after-tax savings early could erode intended long-term resources or legacy goals. Since Hess’s retirement offerings are complemented by voluntary financial planning tools available through Fidelity, retirees are encouraged to review tax implications before initiating withdrawals from traditional retirement accounts.

Health and Emotional Factors

Your health and emotional outlook also play a crucial role. Some Hess retirees, particularly those in physically demanding or field-based roles, may find earlier retirement more appealing for quality-of-life reasons. Whether you were in a non-union corporate role or a union-based field position, planning should reflect not just financial analysis, but also your vision for retirement.

Market Factors and Legislative Shifts

Hess retirees delaying Social Security must remain mindful of potential market risks and legislative shifts. Drawing from investments during downturns could diminish the value of delaying benefits. Furthermore, changes to Social Security eligibility or payout formulas—especially in response to federal budget reforms—could impact future benefits. Hess’s internal communications team regularly issues retirement updates and recommends reviewing these alongside market conditions.

Medicare and Retiree Health Insurance

Social Security decisions are intertwined with healthcare coverage. Hess retirees typically transition to Medicare at age 65, with support from the company’s Retiree Health Program for eligible former employees. This plan differs for union and non-union participants. Union retirees may retain limited benefits under negotiated agreements, while non-union retirees often access supplemental health plans through Hess’s private retiree exchange. If delaying Social Security, retirees must enroll in Medicare separately to avoid penalties, especially for Part B and Part D.

Making an Informed Choice

Ultimately, determining the optimal time to begin Social Security requires a comprehensive review of your Hess retirement benefits, personal health, expected longevity, and financial needs. Hess’s employee assistance and benefits teams, in collaboration with Fidelity, offer online tools and financial wellness consultations to help make these decisions easier.

Conclusion

For Hess retirees, particularly those considering living abroad, the timing of Social Security should align with broader retirement income sources—whether that's from the Hess Retirement Plan, the Hess 401(k) Savings Plan, or other personal investments. Evaluating both the benefits and tradeoffs of delaying Social Security is crucial to building a well-rounded and thoughtful retirement strategy that supports a meaningful life after Hess.

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This strategic approach is akin to planting a tree; while the benefits of delaying Social Security might not be immediate, they significantly enhance financial freedom in later years, much like a tree that grows stronger and provides broader coverage as it matures. This analogy is particularly apt for Hess employees planning for a stable and prosperous retirement.

Sources:

1. 'Social Security Benefit Deferral: What to Know.'  William & Mary Elder and Disability Law Clinic , Oct. 2022, elderlawclinic.pages.wm.edu. Accessed 3 Feb. 2025.

2. Davis, Chris. ''Nearly every retiree should defer Social Security.''  Investment News , 12 Sep. 2024,  www.investmentnews.com . Accessed 3 Feb. 2025.

3. Reddick, Chris. 'How to Effectively Save for Retirement in Hess Companies.'  Chris Reddick Financial Planning, LLC ,  www.chrisreddickfp.com . Accessed 3 Feb. 2025.

4. Nuss, Ken. 'Annuities Can Help You Retire Early, Delay Social Security.'  Kiplinger ,  www.kiplinger.com . Accessed 3 Feb. 2025.

5. Brandt, Benjamin. 'Strategic Retirement Planning for Hess Employees.'  Forbes ,  www.forbes.com . Accessed 3 Feb. 2025.