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Embracing a Side Hustle Post-Retirement: Phillips 66 Employees' Guide to Thriving

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In the current retirement planning landscape at Phillips 66, engaging in part-time work or side hustles is becoming increasingly popular. Even though retirement is often seen as a time for relaxation, today it frequently includes activities that generate income and maintain mental engagement.  A survey by MarketBeat.com  of 3,000 retirees reveals that those pursuing side hustles generally earn about $379 per month. The reasons vary: 47% engage in side hustles to supplement their retirement income, 34% to keep mentally active, 10% to pursue a passion, and 9% to enhance interpersonal relationships.

Preparation is key

It’s valuable for Phillips 66 retirees to consider their post-retirement work plans early on. Advisors recommend starting to plan 5 to 10 years before retirement. This foresight can ease financial constraints and reduce the monotony that might unexpectedly arise. Financial professionals caution against retiring prematurely without adequate financial preparation, likening it to 'pulling the ripcord and jumping out of the plane.'

Weighing the return to work

Deciding whether to work part-time is important for those transitioning from Phillips 66. Financial advisors play a critical role in making these decisions, assessing the necessary income levels and preferred work stress. Key considerations include the need for health benefits, especially for those ineligible for Medicare. Financial professionals highlight the importance of carefully addressing these “serious questions.”

Choosing enjoyable pursuits

Selecting work that brings joy can make it feel less like a chore. Some financial professionals encourage finding employment in areas that spark personal interest. For animal lovers, dog walking or pet sitting could be suitable, while sports enthusiasts might enjoy managing youth events. John Jones from Heritage Financial shares a client example, where, despite being financially stable, the client chose to learn golf partly to remain active and mentally engaged.

Financial implications on Social Security and Taxes

Earning a salary during retirement can affect social benefits and taxes. Those receiving Social Security benefits before full retirement age must consider the income limit that could affect their benefits. Additionally, retirees need to monitor their income to prevent moving into a higher tax bracket, particularly when making Required Minimum Distributions (RMDs). Jennifer Kohlbacher, who oversees wealth strategy at Mariner, advises structuring side hustles carefully. She suggests using a sole LLC to prevent legal disputes and discusses potential deductions for expenses like equipment and mileage.

Continuing retirement savings

Working during retirement can also help extend the lifespan of retirement savings. Other financial professionals highlight a case where a retired Phillips 66 executive chose consulting to reduce withdrawals from his personal retirement account (IRA), allowing the account to grow tax-deferred and increase its financial value for his heirs.

Adaptability and ongoing evaluation

Life’s unpredictability calls for flexibility in retirement plans.  There are real-life examples of a retirees returning to work to support their spouses during early parental leave. It’s beneficial to perform regular financial reviews to confirm that the side hustle meets ongoing financial and emotional needs.

In conclusion

The evolving perspective on retirement now sees it as a phase that may include ongoing work activities, reflecting shifts in financial strategies, personal fulfillment, and social structures over time. As this trend grows, retirees are encouraged to view self-employment not only as a financial supplement but also as an opportunity to stay engaged and involved in society.

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Participating in side hustles can significantly improve the cognitive health of retirees.  According to a 2020 study by the American Psychological Association , retirees engaged in productive activities, such as part-time roles or self-employment, reported better psychological health and increased cognitive capacity compared to those fully retired. This stimulation from active work supports mental alertness, crucial for personal financial management and effective problem-solving in retirement.

Navigating retirement with a side hustle is like sailing through a peaceful retirement haven with a sturdy little motorboat. Just as a sailor uses the motorboat to explore new coves and shores freely, extending the journey beyond set boundaries, an alternative activity during retirement allows individuals to pursue new passions and opportunities while maintaining their financial stability. It’s the perfect blend of exploration and income generation, allowing retirees to boost their income on their own terms, maintain mental resilience, and expand social networks—all while mastering the dynamics of their post-professional life.

What is the 401(k) plan offered by Phillips 66?

The 401(k) plan offered by Phillips 66 is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are deducted.

How does Phillips 66 match employee contributions to the 401(k) plan?

Phillips 66 offers a matching contribution to the 401(k) plan, which typically matches a percentage of the employee's contributions up to a certain limit.

When can employees at Phillips 66 enroll in the 401(k) plan?

Employees at Phillips 66 can enroll in the 401(k) plan during their initial eligibility period, which is typically within 30 days of their hire date.

What types of investment options are available in the Phillips 66 401(k) plan?

The Phillips 66 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

Can Phillips 66 employees take loans against their 401(k) savings?

Yes, Phillips 66 employees may have the option to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What is the vesting schedule for Phillips 66's 401(k) matching contributions?

The vesting schedule for Phillips 66's 401(k) matching contributions typically follows a graded schedule, meaning employees earn rights to the match over a period of time.

How can Phillips 66 employees access their 401(k) account information?

Phillips 66 employees can access their 401(k) account information through the company's benefits portal or by contacting the plan administrator.

What happens to a Phillips 66 employee's 401(k) if they leave the company?

If a Phillips 66 employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Phillips 66 plan if eligible.

Are there any fees associated with the Phillips 66 401(k) plan?

Yes, there may be fees associated with the Phillips 66 401(k) plan, including administrative fees and investment management fees, which are disclosed in the plan documents.

Can Phillips 66 employees change their contribution percentage to the 401(k) plan?

Yes, Phillips 66 employees can change their contribution percentage to the 401(k) plan at certain times throughout the year, typically during open enrollment or at designated times.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Phillips 66 offers multiple pension plans, including a traditional defined benefit plan for employees hired before April 1, 2013, and a cash balance plan for those hired after this date. The defined benefit plan calculates retirement benefits based on years of service and final average pay. The cash balance plan credits a percentage of the employee's salary annually to an account that grows with interest. Additionally, Phillips 66 provides a 401(k) savings plan with company matching contributions to enhance retirement savings. Employees can manage their retirement accounts through the Vanguard platform.
Operational Changes: Phillips 66 is restructuring its business to focus more on its core refining and petrochemicals segments, leading to layoffs affecting around 1,500 employees (Source: Bloomberg). Strategic Initiatives: The company aims to enhance operational efficiency and reduce costs. Financial Performance: Phillips 66 reported a 10% increase in net sales for Q3 2023, driven by strong demand for its refining products (Source: Phillips 66).
Phillips 66 includes RSUs in its compensation packages, vesting over a specific period and converting into shares. Stock options are also provided, enabling employees to buy shares at a predetermined price.
Phillips 66 has actively enhanced its employee healthcare benefits to align with the current economic, investment, tax, and political environment. In 2022, the company introduced comprehensive health and wellness programs designed to support the overall well-being of its employees. These programs include a variety of medical plans, dental and vision coverage, health savings accounts, and wellness initiatives. Phillips 66 also emphasized mental health support by offering Employee Assistance Programs (EAP) and stress management resources. These benefits reflect the company's commitment to fostering a healthy and productive workforce, which is essential for maintaining high performance in a competitive market. In 2023, Phillips 66 continued to expand its healthcare offerings by integrating new digital health solutions and enhancing access to preventive care services. The company introduced virtual health services and telemedicine options, ensuring employees have convenient access to healthcare professionals. Additionally, Phillips 66 focused on financial wellness, offering programs and resources to help employees manage their finances effectively and prepare for retirement. These initiatives are part of Phillips 66's broader strategy to create a supportive and inclusive work environment, which is critical for attracting and retaining top talent. By investing in robust healthcare benefits, Phillips 66 aims to ensure long-term business success and resilience amid economic uncertainties.
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For more information you can reach the plan administrator for Phillips 66 at 2331 citywest blvd Houston, TX 77042; or by calling them at 281-293-6600.

https://www.phillips66.com/documents/pension-plan-2022.pdf - Page 5 https://www.phillips66.com/documents/pension-plan-2023.pdf - Page 12 https://www.phillips66.com/documents/pension-plan-2024.pdf - Page 15 https://www.phillips66.com/documents/401k-plan-2022.pdf - Page 8 https://www.phillips66.com/documents/401k-plan-2023.pdf - Page 22 https://www.phillips66.com/documents/401k-plan-2024.pdf - Page 28 https://www.phillips66.com/documents/rsu-plan-2022.pdf - Page 20 https://www.phillips66.com/documents/rsu-plan-2023.pdf - Page 14 https://www.phillips66.com/documents/rsu-plan-2024.pdf - Page 17 https://www.phillips66.com/documents/healthcare-plan-2022.pdf - Page 23

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