Why American Family Employees: Do NOT Need a Bucket List in Retirement

Healthcare Provider Update: Healthcare Provider for American Family American Family Insurance offers health insurance primarily through its partnership with HealthPartners and other regional health systems, depending on specific plan availability and state regulations. They provide a range of health coverage options, including individual and family plans as part of their broader insurance portfolio. Brief on Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, significant rises in Affordable Care Act (ACA) premiums are expected in 2026, with average increases projected at around 20%. This surge is attributed to various factors, including escalating medical costs, the potential expiration of enhanced federal premium subsidies, and aggressive rate hikes from major insurers like UnitedHealthcare, which is requesting increases as high as 66.4% in certain states. Consequently, if these subsidies are not extended, many consumers could experience a staggering 75% increase in their out-of-pocket premiums, pricing out a substantial segment of middle-income families from adequate coverage. As a result, 2025 becomes a crucial year for consumers to proactively strategize to mitigate the financial impacts of skyrocketing healthcare costs. Click here to learn more

The first few years of retirement are frequently a time of transitions for many, including those leaving American Family. It is a critical period that can influence the next few decades financially and emotionally. At the age of sixty-six, Wall Street Journal distinguished editor Stephen Kreider Yoder announced his retirement. His wife, sixty-seven-year-old Karen Kreider Yoder, followed suit. Their experiences, highlighted in the 'Retirement Rookies' column each month, demonstrate a departure from conventional retirement preparation. They emphasize crafting adaptable, meaningful experiences that serve as a foundation for future undertakings over following predetermined bucket lists.

As retirement approaches, American Family employees are in a unique position to embrace the changes in their post-employment years. By focusing on personal development and continual exploration, retirees can ensure a fuller, more satisfying retirement experience. This narrative offers invaluable insights for American Family employees looking to maximize their life-changing retirement years.

Recent studies by the American Psychological Association (APA) underline the advantages of the Yoders' method of unstructured retirement planning. The research indicates that retirees adhering rigidly to their pre-planned bucket lists report lower levels of satisfaction and fulfillment compared to those who engage in activities based on their own interests and whims. This suggests that a flexible retirement lifestyle can lead to more fulfilling and significant experiences, especially for American Family employees transitioning from structured careers to the freedom of retirement.

American Family Retirement Plans: Navigating the Transition

For American Family employees, retirement is not just about transitioning out of a job; it's about transitioning into a comprehensive retirement plan that includes various benefits designed to offer financial security and healthcare coverage. Here’s a closer look at some of the retirement benefits American Family employees should understand:

Pension Plan: Flexibility in Choosing Your Retirement Income

American Family employees are eligible for a pension plan, which offers flexibility in how they receive their retirement benefits. Eligible employees can choose between a lump sum payment or an annuity option to receive their pension payouts. Those who opt for a lump sum will receive a one-time payment based on their accrued pension benefit, which can be used for investing, savings, or other financial needs. On the other hand, the annuity option provides a regular income stream for the rest of the retiree's life, ensuring financial stability during retirement.

For union employees, there may be variations in pension plan options depending on the specific union agreement, so it’s important to review the terms laid out in the collective bargaining agreement.

401(k) Savings Plan: Preparing for Financial Freedom

American Family’s 401(k) Savings Plan allows employees to build retirement savings throughout their career with tax-deferred contributions. Employees can choose from a variety of investment options to grow their savings, with a match provided by the company. This plan is designed to complement the pension plan and provide American Family retirees with a more robust retirement income.

The eligibility for 401(k) participation generally begins after one year of service, and employees can contribute a percentage of their salary each pay period. Contributions are made pre-tax, reducing taxable income during working years. Union employees may have different vesting schedules or contribution limits, so it’s essential to understand the specifics of their agreement.

Health Benefits for Retirees: Comprehensive Coverage

Retiring from American Family doesn’t mean losing access to healthcare benefits. The company offers retiree health benefits for employees who have met the eligibility criteria. These benefits typically include medical, dental, and vision coverage, with options for spousal coverage as well. Employees must meet specific age and service requirements to qualify for these benefits, and they may need to pay a portion of the premiums.

For union employees, the healthcare benefits may vary based on their union agreement, and the terms could include different premium structures or eligibility criteria.

Unique Programs: Beyond the Basics

In addition to the core retirement benefits, American Family offers unique programs that set it apart from other employers. These include financial planning services, which assist employees in making informed decisions about their retirement savings, investments, and pension options. Additionally, the company may offer access to educational resources or retirement seminars, allowing employees to prepare for this major life transition with confidence.

Retirees who have been with the company for an extended period also enjoy the American Family Employee Assistance Program (EAP), which offers counseling services, legal advice, and retirement planning resources to ensure a smooth transition into retirement.

Union vs. Non-Union Employees: Key Differences in Benefits

While both union and non-union employees of American Family enjoy access to robust retirement benefits, there are differences in eligibility and terms, particularly when it comes to the pension and health benefits. Union employees may have specific terms negotiated through collective bargaining that affect their pension plans, healthcare options, and retirement timelines. Non-union employees, on the other hand, may have more flexibility in how they structure their 401(k) contributions and have different health insurance options post-retirement.

Understanding these distinctions can help American Family employees make informed decisions about their retirement plans and prepare for the future. Whether opting for a lump sum or annuity from their pension, selecting the right investment strategies for their 401(k), or navigating health benefits, American Family employees have a range of tools to ensure they can retire with peace of mind.

In the Retirement Rookies column, Stephen and Karen Kreider Yoder share their journeys and offer a fresh perspective on retirement planning. Learn why they're passing on typical bucket lists in favor of flexible, meaningful experiences, and how this strategy might enhance your post-work years at American Family. Discover how embracing an unstructured retirement can lead to increased contentment and pleasure, setting the stage for a rewarding future.

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Forgoing a conventional retirement plan is akin to sailing a ship without a defined course. Retirees like the Yoders choose to navigate the waters of their golden years with the liberty to uncover new horizons as they appear, rather than charting every port of call. This method, much like a sailor discovering new adventures in uncharted waters, allows them to encounter unexpected joys and experiences, enriching each day with personal growth and satisfaction.