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

'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, “Ohio National Mutual 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 Ohio National Mutual 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.

Ohio National Mutual 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 Ohio National Mutual 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 Ohio National Mutual 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 plan options does Ohio State offer its employees, and how do these plans compare in terms of contribution rates and employer matching? Understanding the distinctions between the ARP Defined Contribution and OPERS Traditional Pension Plan is important for making informed retirement choices.

Retirement Plan Options: Ohio State offers several retirement plan options, including the ARP Defined Contribution, OPERS Member-Directed, OPERS Traditional Pension (Defined Benefit), and OPERS Combined Plan (Defined Benefit and Defined Contribution). Employees contribute 10% of their eligible compensation to these plans, and Ohio State contributes 14%. In the ARP, employees manage their investments, while OPERS plans involve a mixture of defined benefit formulas and employee contributions(Ohio State_Retirement P…).

How does the vesting schedule work for contributions made to the various retirement plans at Ohio State? Employees should have a clear understanding of when they become fully vested in employer contributions and how this affects their retirement benefits.

Vesting Schedule: For the ARP plan, both employee and university contributions are immediately vested. In the OPERS Member-Directed plan, employee contributions are immediately vested, but university contributions are vested over five years. For the OPERS Traditional Pension and Combined plans, vesting occurs in stages: employees become 33% vested after 5 years and 67% vested after 10 years(Ohio State_Retirement P…).

In what ways can Ohio State employees manage their retirement accounts following termination or retirement, including options for lump-sum distributions or rolling funds into other retirement vehicles? Exploring these options can help employees better plan their financial future post-employment.

Account Management Post-Employment: Upon termination or retirement, employees can either leave their balance with the provider, roll it over into another qualified account, or withdraw funds as lump sums, fixed-period payments, or annuities. OPERS also offers joint or multiple life annuities(Ohio State_Retirement P…).

Can you elaborate on the investment choices available under the Ohio State ARP Defined Contribution plan, and how does the investment risk differ from that of the OPERS plans? Itâ€™s essential to assess how employees can maximize their retirement savings through sound investment strategies.

Investment Choices and Risk: In the ARP Defined Contribution and OPERS Member-Directed plans, employees choose from various investment options, bearing all the associated risks and fees. In contrast, OPERS manages the assets in the Traditional Pension and the DB portion of the Combined Plan, so employees assume no investment risk(Ohio State_Retirement P…).

What criteria must be met for employees at Ohio State to qualify for disability benefits under the pension plans, and how are these benefits structured? Understanding the nuances of these benefits can be crucial for staff planning for unforeseen events.

Disability Benefits: Employees can qualify for disability benefits under OPERS after five years of service. Benefits are calculated based on service credits in the Traditional Pension and Combined Plans. The ARP plan offers no additional disability benefits beyond the vested account balance(Ohio State_Retirement P…).

How does the interaction between Ohio State's retirement plans affect employees' eligibility for Social Security benefits, and what considerations should be taken into account? This is a significant aspect that can influence long-term retirement planning.

Interaction with Social Security: Participation in Ohio State's retirement plans may reduce Social Security benefits for eligible employees due to offset provisions. This can impact long-term retirement planning, so employees should consider this when making decisions(Ohio State_Retirement P…).

What are the tax implications of withdrawing funds from Ohio State's retirement plans, and how can employees effectively plan for these taxes? Insights into the tax-deferred nature of contributions can aid in financial decision-making.

Tax Implications: Contributions to Ohio State’s retirement plans are made on a pre-tax basis, meaning federal and state taxes are deferred until the time of withdrawal. Early withdrawals (before age 59½) may incur additional tax penalties(Ohio State_Retirement P…).

Are there any additional benefits or programs available to employees through Ohio State that can complement retirement savings, such as health care benefits after retirement? These additional offerings can significantly enhance overall retirement security.

Additional Benefits: Ohio State provides health care, disability, and survivor benefits to employees enrolled in the OPERS Traditional Pension and Combined Plans. Access to a Retiree Medical Account for healthcare expenses is available in some plans(Ohio State_Retirement P…).

How can Ohio State employees get in touch with the Human Resources department to learn more about retirement plan options, contribution limits, and other benefits? It's crucial for employees to know the right channels to obtain help regarding their retirement planning.

Human Resources Contact: Employees can contact the Office of Human Resources or their selected ARP provider for more information on retirement plan options, contribution limits, and other benefits. Ohio State also provides resources on its HR website(Ohio State_Retirement P…).

What changes, if any, are expected in Ohio State's retirement plans for the upcoming year, especially concerning contribution limits and other regulatory adjustments? Staying informed about potential changes can help employees proactively adjust their retirement savings strategies. These questions aim to provide a comprehensive understanding of retirement plans and associated benefits at Ohio State, facilitating employee engagement and informed decision-making.

Expected Plan Changes: Any changes to contribution limits or plan adjustments will likely be communicated through Ohio State’s HR department. It's essential for employees to stay updated through official HR channels to proactively adjust their retirement strategies(Ohio State_Retirement P…).