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

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Healthcare Provider Update: For Parsons, the primary healthcare provider is the UnitedHealthcare plan, particularly significant as it is one of the largest insurers in the country, alongside others that may service Parsons employees depending on their locations. As we move into 2026, healthcare costs are expected to escalate dramatically due to a combination of factors affecting the Affordable Care Act (ACA) marketplace. Reports anticipate substantial premium increases, with some states seeing hikes of over 60%. This surge is primarily driven by deteriorating medical cost trends and the looming expiration of enhanced federal premium subsidies, which could result in out-of-pocket premium payments rising by an average of over 75% for approximately 92% of marketplace enrollees - a situation that poses significant financial challenges for individuals relying on ACA coverage. Thus, Parsons employees are advised to consider these developments carefully as they plan their healthcare for the upcoming year. 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, “Parsons 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 Parsons 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.

Parsons 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 Parsons 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 Parsons 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 is the 401(k) plan offered by Parsons?

The 401(k) plan at Parsons is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them build a nest egg for retirement.

How does Parsons match employee contributions to the 401(k) plan?

Parsons offers a company match on employee contributions to the 401(k) plan, typically matching a percentage of the employee's contributions up to a certain limit.

When can employees at Parsons enroll in the 401(k) plan?

Employees at Parsons can enroll in the 401(k) plan during their initial onboarding process or during the annual open enrollment period.

What investment options are available in Parsons' 401(k) plan?

Parsons' 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Can employees at Parsons take loans against their 401(k) savings?

Yes, employees at Parsons may be able to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What is the vesting schedule for Parsons' 401(k) plan?

The vesting schedule for Parsons' 401(k) plan determines how long employees must work at the company before they fully own the employer's contributions, which may vary based on tenure.

How can employees at Parsons access their 401(k) account information?

Employees at Parsons can access their 401(k) account information through the company's designated retirement plan website or mobile app.

What happens to the 401(k) plan if an employee leaves Parsons?

If an employee leaves Parsons, they have several options regarding their 401(k) plan, including rolling it over to a new employer's plan or an IRA, or cashing it out, subject to taxes and penalties.

Does Parsons offer any financial education resources related to the 401(k) plan?

Yes, Parsons provides financial education resources and workshops to help employees understand their 401(k) options and make informed investment choices.

Are there any fees associated with Parsons' 401(k) plan?

Yes, there may be administrative fees and investment fees associated with Parsons' 401(k) plan, which are disclosed in the plan's documentation.

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