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

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Healthcare Provider Update: Healthcare Provider for Lithia Motors: Lithia Motors employees typically receive healthcare benefits through a variety of insurance providers, including major national insurers such as UnitedHealthcare, Aetna, and Blue Cross Blue Shield. These insurance partners offer comprehensive health plans that cater to the needs of Lithia Motors' workforce. Potential Healthcare Cost Increases in 2026: In 2026, Lithia Motors employees may face significant increases in healthcare costs, driven by a combination of factors impacting the Affordable Care Act (ACA) marketplace. Premiums for ACA plans are projected to rise sharply, with some states experiencing hikes upwards of 60%, primarily due to the expiration of enhanced federal subsidies and escalating medical costs. As a result, employers like Lithia Motors may adjust their benefit structures, potentially shifting a greater share of healthcare expenses onto employees. Navigating this landscape will require diligence in understanding upcoming benefit changes and making informed decisions about health plan selections to mitigate rising out-of-pocket costs. 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 says, “Lithia Motors employees should take all the tools that are available to simulate different financial situations and include health-care costs into the planning to make a good and sustainable retirement plan.”

In this article, we will discuss:

The Current State of Retirement Savings: This paper focuses on the median savings of Americans aged 55 and the implications for financial well-being as retirees.

Economic Challenges and Retirement Delays: In this paper, we explore how inflation and rising costs of living affect the age of retirement of Lithia Motors employees, with a focus on those who decide to delay their retirement due to financial issues.

Strategies for the Future: In this paper, we explore tools like Prudential’s Stock Simulator and the need to include health-care expenses in retirement planning to reduce the uncertainty of future financial needs.

According to the 2024 Pulse of the American Retiree Survey by Prudential, there is a worrying trend among people who are close to retirement. The last survey was conducted from April 26 to May 2, 2024, and involved 905 Americans aged 55, 65, and 75. It is a cause for concern that those 55 years old, i.e., just a decade from the current retirement age of 65, are poorly positioned, with median retirement savings of less than $50,000.

This figure is quite startling when it is compared with the financial guidelines that have been put in place. This age group should, in theory, have saved eight times their annual salary by the time they are 60 to be able to live comfortably in retirement. Prudential notes that this population may be the first in recent history to retire without the support of Social Security or traditional pension plans, leaving them financially exposed.

Lithia Motors employees are facing multiple challenges in the present economic environment, including inflation and higher costs of living, which force many of them to postpone their retirement. The survey shows that these economic strains have made 33% of the 55-year-olds and 43% of the 65-year-olds delay their retirement.

Also, another concern of the surveyed employees is the fear of running out of retirement funds; 67% of the 55-year-olds have this fear. This fear is not as intense but still present among other age groups, which results in a higher level of dependence on family support in later years; 24% of the 55-year-olds expected to require such support.


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 Lithia Motors 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 Lithia Motors 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:

Landsberg Bennett . 'Retirement in 2024: Strategies for Financial Stability Amid Economic Uncertainty.'  Landsberg Bennett , 2024.  landsbergbennett.com .

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 .

What retirement savings options does Lithia Motors offer to its employees?

Lithia Motors offers a 401(k) plan as a primary retirement savings option for its employees.

How can employees of Lithia Motors enroll in the 401(k) plan?

Employees can enroll in the Lithia Motors 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

Does Lithia Motors match employee contributions to the 401(k) plan?

Yes, Lithia Motors offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the vesting schedule for Lithia Motors' 401(k) matching contributions?

The vesting schedule for Lithia Motors' 401(k) matching contributions typically follows a standard timeline, which can be confirmed in the employee handbook or by HR.

Can employees of Lithia Motors take loans against their 401(k) savings?

Yes, Lithia Motors allows employees to take loans against their 401(k) savings, subject to certain terms and conditions.

What investment options are available in the Lithia Motors 401(k) plan?

The Lithia Motors 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to diversify their portfolios.

Is there a minimum contribution requirement for the Lithia Motors 401(k) plan?

Yes, Lithia Motors may have a minimum contribution requirement for employees wishing to participate in the 401(k) plan, which can be found in the plan documents.

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

Employees of Lithia Motors can typically change their contribution amounts at any time, but it’s advisable to check the specific guidelines in the plan documents.

What is the age requirement for employees to start contributing to the Lithia Motors 401(k) plan?

Employees must be at least 21 years old to start contributing to the Lithia Motors 401(k) plan, in accordance with IRS regulations.

Does Lithia Motors offer financial education resources for employees regarding their 401(k) plan?

Yes, Lithia Motors provides financial education resources and workshops to help employees understand and manage their 401(k) plans effectively.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Name of Pension Plan: Determine the specific name of Lithia Motors' pension plan. Years of Service and Age Qualification: Identify the required years of service and age for eligibility. Pension Formula: Review how the pension amount is calculated. Source Document: Find and cite the specific documents where this information is available, including page numbers. Name of 401(k) Plan: Determine the specific name of Lithia Motors' 401(k) plan. Who Qualifies: Identify the eligibility criteria for participating in the 401(k) plan. Source Document: Find and cite the specific documents where this information is available, including page numbers.
Restructuring and Layoffs: Lithia Motors announced strategic layoffs in 2024, aiming for $150 million in annual savings through targeted employee reductions. These layoffs focus primarily on U.S. operations rather than global ones, particularly targeting underperforming management at the store level. These layoffs are part of a broader plan to cut $250 million in expenses, including reducing inventory and third-party service costs​ (CBT News)​ (SEC.gov).

Pension and 401(k) Benefits: Lithia Motors offers a range of retirement benefits, including a 401(k) plan with company match, employee stock purchase plans, and performance bonuses. The 401(k) plan allows employees to manage their investments, take out loans against their vested balances, and choose different disbursement methods upon retirement. The company also offers pension benefits for eligible employees, including projections and beneficiary management​ (Built In)​ (Benefits Account Manager).
Stock Options and RSUs: Lithia Motors (LAD) offers stock options and RSUs to its employees as part of its compensation packages. Eligibility: These benefits are generally available to executives, senior management, and key employees based on performance and role. Company Acronyms: Lithia Motors uses LAD for its stock options and RSU grants.
Medical Insurance: Lithia Motors provides several health insurance plans, including High Deductible Health Plans (HDHPs) and Preferred Provider Organization (PPO) plans. Dental and Vision Insurance: Coverage is offered through a range of plans, with options for both basic and more extensive dental and vision care. HSAs and FSAs: These accounts help employees manage healthcare expenses by allowing pre-tax contributions.
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