Survey Reveals: 55-Year-Olds Are Not on Track to Retire by 65—What This Means for International Paper Employees

Healthcare Provider Update: Healthcare Provider for International Paper International Paper typically utilizes large national insurers for its employee health coverage, primarily opting for options like UnitedHealthcare, Anthem (Elevance Health), or Aetna. These providers are known for offering comprehensive health plans that include medical, dental, and vision coverage for employees across various regions. Potential Healthcare Cost Increases in 2026 As we approach 2026, significant healthcare cost increases are anticipated, largely driven by escalating premiums in the Affordable Care Act (ACA) marketplace. States could see premium hikes exceeding 60%, influenced by rising medical costs, the possible expiration of federal premium subsidies, and aggressive rate adjustments by major insurers. Specifically, more than 22 million enrollees may face premium increases of over 75%, a development that poses serious implications for budget-conscious families and employers alike. As the healthcare landscape evolves, proactive strategies will be essential to mitigate the impact of these unsettling financial shifts. Click here to learn more

'Large Corporation’s employees who are vulnerable to poor retirement planning and economic risks should concentrate on the following goals in their financial planning: 'advises Tyson Mavar of The Retirement Group at Wealth Enhancement Group. 'Through this approach, they can ensure that they have made the right changes to their retirement plans and that they have enough financial resources for the rest of their lives.'

As the 2024 Pulse of the American Retiree Survey shows, it is important to prepare for the future in the current environment, and this is especially the case for retirees. Tyson Mavar from The Retirement Group, a division of Wealth Enhancement Group, emphasizes, “International Paper employees should utilize all available resources, including the International Paper Retirement Plan, IP 401(k) Savings Plan, and healthcare benefit calculators, to simulate various financial scenarios and incorporate anticipated healthcare costs into their planning. This will help ensure a sustainable retirement.”

In this article, we will discuss:

The Current State of Retirement Savings: This section highlights the median retirement savings among Americans aged 55 and discusses its implications specifically for International Paper employees.

Economic Challenges and Retirement Delays: Here, we examine how inflation and rising living costs directly impact retirement decisions of International Paper employees, particularly those considering delaying retirement due to financial constraints.

Strategies for the Future: We explore essential tools such as the Prudential Retirement Income Calculator, International Paper’s own pension estimator tools, and emphasize the critical importance of including healthcare expenses—such as those covered by the IP Retiree Medical Plan—in retirement planning to mitigate financial uncertainty.

According to the 2024 Pulse of the American Retiree Survey by Prudential, there is a concerning trend among individuals nearing retirement. Conducted between April 26 and May 2, 2024, the survey included 905 Americans aged 55, 65, and 75. Alarmingly, those aged 55—just ten years away from traditional retirement age—have median retirement savings of less than $50,000, far below recommended guidelines.

Financial planning benchmarks suggest individuals should aim to save eight times their annual salary by age 60 to maintain their pre-retirement lifestyle comfortably. Prudential indicates that this demographic may become the first generation in recent history to retire without substantial reliance on Social Security or traditional pensions, significantly increasing their financial vulnerability.

International Paper employees face several economic hurdles today, notably inflation and escalating living expenses, compelling many to postpone retirement. The Prudential survey highlights these pressures clearly, showing 33% of employees aged 55 and 43% of those aged 65 have decided to delay retirement.

Moreover, a prominent concern among surveyed International Paper employees is the fear of exhausting retirement savings; 67% of 55-year-old employees expressed this fear. Although less severe among older groups, this anxiety still exists, potentially increasing dependency on family support in retirement; 24% of 55-year-olds expect to rely on such assistance.

Given these realities, it is crucial for International Paper employees to proactively engage with their retirement plans. Utilizing company-provided tools such as the IP Retirement Plan, which offers both lump sum and annuity options, and the IP 401(k) Savings Plan—which includes matching contributions—can significantly enhance retirement readiness. Additionally, understanding eligibility and specific benefits available through the IP Retiree Medical Plan is essential to accurately forecast and incorporate healthcare costs into a comprehensive retirement strategy.

Large Corporation employees must actively manage their finances and readjust their retirement plans for changing social security and economic conditions. As an example, Prudential provides a free Stock Simulator that helps individuals to make their investment decisions in a simulated market before actually investing in the real market.

The survey is an important call to action for International Paper employees, and it highlights the need to plan carefully and to be adaptable in the face of shifting social and economic forces as one enters retirement.

The consequences of health-care expenditures, which are often disregarded by International Paper employees who are planning for retirement, cannot be ignored. A recent report by Fidelity Investments reveals that a retired couple, both aged 65, may need about $300,000 after tax for health-care expenditures only. This data shows the need to include health-care expenses in retirement planning to avoid financial strain in old age.

At 55, retirement planning is like sailing in unfamiliar waters without a clear chart or a reliable compass. Like sailors, those who are planning to retire must be ready for the volatility of financial markets, the uncertainty of health-care costs, and the ambiguity of Social Security benefits. This preparation involves the accumulation of a significant financial safety net to provide a smooth and safe transition to retirement even in the face of a volatile economy.

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Sources:

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Ruggles, Jessica . 'New York Life Wealth Watch 2025 Outlook: Americans’ Financial Confidence Holds Despite Continued Debt and Inflation Challenges.'  New York Life , 2024.  newyorklife.com .

Henderson, Eric . 'Help Clients Realize Their Retirement Dreams in a Time of Economic Uncertainty.'  Nationwide Financial , 2024.  nationwide.com .

De Juan, Martin . 'Navigating Retirement Investing in an Unpredictable 2024 Economy: Insights from Ty J. Young.'  Market Daily , 12 Mar. 2024.  marketdaily.com .

'Retirement Savings Reach Record Highs in 2024, Gaps In Coverage Remain.'  DailyFED , 2024.  dailyfed.com .