New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Navigating Retirement Challenges: Essential Insights for Hershey Employees

Healthcare Provider Update: Healthcare Provider for Hershey: The Hershey Company utilizes a comprehensive employee health plan primarily administered by Aetna. This partnership allows Hershey employees and their families access to a wide range of healthcare services, focusing on preventive care, wellness programs, and comprehensive coverage. Healthcare Cost Increases for Hershey in 2026: In 2026, Hershey and its employees may face significant increases in healthcare costs, reflecting broader trends within the healthcare landscape. With anticipated ACA premium hikes, many enrollees could see their out-of-pocket costs surge by over 75% due to the potential expiration of enhanced federal premium subsidies. Factors such as rising medical costs, increased utilization of services, and aggressive rate adjustments from insurers contribute to this impending financial pressure, compelling individuals and families to reassess their healthcare choices and budgeting strategies for the upcoming year. Click here to learn more

The road to retirement is marked by strategic choices and consistent saving habits. Despite the well-known importance of preparing for the golden years, many workers, including Hershey employees, faced financial constraints in 2023 that prevented contributions to retirement accounts. According to the Bureau of Labor Statistics, nearly a quarter of Americans did not contribute to their 401(k) or IRA this year, highlighting the financial pressures that continue into retirement.

The key issue often lies in present bias—the tendency to prioritize immediate gratification over long-term benefits. This, combined with economic challenges like inflation and stagnant wages, has led to a significant decline in retirement savings. While the average post-tax income for retirees in 2022 was $47,620, compared to average annual expenses of $52,140, it’s clear that proactive financial planning is crucial for Hershey employees to secure a stable retirement.

For many, living paycheck to paycheck is a reality, with 34% to 66% of Americans facing this challenge. The difficulty in setting aside immediate financial demands to prioritize future security is a major hurdle. Among retirees, the lack of sufficient retirement income emerges as a significant regret, compounded by the need to take hardship withdrawals—often used to cover urgent expenses like medical bills or education loans. These withdrawals, available without penalty after age 59½, can still be costly, with a potential 10% penalty for early withdrawals.

This trend is on the rise, with a 0.8% increase in hardship withdrawals observed between 2022 and 2023. Unfortunately, only 2% of employees are aware of the age requirement for penalty-free withdrawals, indicating a widespread lack of financial literacy. This knowledge gap has real consequences, with 37% of full-time workers opting to withdraw or borrow from their 401(k) plans.

The top regret expressed by retirees is the lack of early retirement planning. In fact, 68% wish they had started saving sooner, and this sentiment is even stronger among those who began contributing in their thirties, with 80% wishing they had started earlier. Additionally, 60% of those who took early withdrawals now recognize the negative impact it had on their retirement savings.

To address these issues, several strategies can be employed. Financial education is one of the most effective ways to bridge the gap between income and savings. Data shows that 91% of employees with access to financial wellness resources participate in their employer’s retirement plan, compared to only 76% of those without access. This highlights the critical role that informed financial choices play in maintaining financial stability for Hershey employees.

Moreover, 31% of employees enrolled in savings plans are unaware of their account balances, while 10% do not know how to access this information. Employers like Hershey can play a key role in demystifying the savings process and integrating retirement planning into the overall employee experience. Reducing financial stress not only helps employees manage their savings more effectively but also boosts productivity at work.

Hershey, like many employers, is encouraged to simplify the retirement plan enrollment process to increase participation rates. Currently, 44% of employees believe the account registration process is too complex, while 14% abandon the process due to its complexity. Auto-enrollment is a potential solution, positioning retirement contributions as another standard payroll deduction, similar to Social Security and income tax. This method would help employees naturally incorporate retirement savings into their financial planning.

By considering these aspects, both Hershey and its employees can work together to close the retirement savings gap, ensuring better preparation for future financial needs and leading to a more secure retirement.

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A recent study by the National Institute on Retirement Security (2021) found that healthcare costs are a major concern for retirees, with an average annual expenditure of nearly $6,800. This underscores the importance of comprehensive retirement planning that goes beyond savings to include a solid strategy for covering healthcare expenses, which often increase with age. Incorporating a Health Savings Account (HSA) or exploring retirement-age healthcare benefits can reduce unexpected financial burdens and ensure a smoother transition into retirement.

Explore essential planning strategies to optimize your savings and minimize regrets. Understand the consequences of not contributing to 401(k)s and IRAs, the impacts of early withdrawals, and the importance of financial education tools. Ensure that your golden years are secure by recognizing the value of employer-sponsored retirement plans and early investments. This guide offers critical advice on managing retirement expenses, emphasizing the importance of proactive savings and informed financial decisions for a stable future.

Navigating retirement savings is much like steering a ship on a long ocean voyage. Just as a captain must carefully chart the course, monitor supplies, and prepare for unpredictable weather, individuals must manage their finances strategically, anticipate expenses, and adapt to economic changes. It’s impossible to contribute to a retirement fund (401(k), IRA) without sufficient savings, leaving individuals vulnerable to financial storms without security. By investing early, utilizing financial education, and avoiding premature withdrawals, Hershey employees can ensure their financial system is robust enough to reach the shores of retirement safely and comfortably.

What is the Hershey 401(k) plan?

The Hershey 401(k) plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or post-tax basis.

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

Hershey offers a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions, up to a certain limit.

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

Employees at Hershey can enroll in the 401(k) plan during their initial onboarding period or during specific open enrollment periods throughout the year.

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

Hershey's 401(k) plan provides a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their retirement savings.

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

Yes, Hershey allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

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

The vesting schedule for Hershey's 401(k) matching contributions typically follows a graduated schedule, meaning employees earn ownership of the match over a specified period of service.

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

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

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

If a Hershey 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 Hershey plan if eligible.

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

Yes, there may be fees associated with Hershey's 401(k) plan, such as administrative fees or investment management fees, which are disclosed in the plan documents.

How does Hershey educate employees about the 401(k) plan?

Hershey provides educational resources, workshops, and one-on-one consultations to help employees understand their 401(k) options and make informed decisions.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Hershey Employee Pension Plan: Name of Plan: Hershey Company Pension Plan. Pension Formula: Hershey's pension formula typically involves a defined benefit formula based on years of service and final average salary. However, specific details about the formula can be complex and may require accessing detailed plan documents. Years of Service and Age Qualification: Generally, eligibility for the pension plan requires a certain number of years of service and reaching a specific age. The details can vary depending on the plan's provisions for different employee groups. Qualification Criteria: Typically, employees must reach a specific age (often 55 or older) and have a minimum number of years of service (such as 5 or 10 years) to qualify for full pension benefits. Hershey 401(k) Plan: Name of Plan: Hershey 401(k) Savings Plan. Qualification for Plan: Employees are usually eligible to participate in the 401(k) plan from their date of hire. Contributions are made through payroll deductions, and Hershey may offer matching contributions based on the employee’s contribution rate. Contribution Limits: The plan generally follows IRS limits for employee contributions and employer matching contributions.

Hershey announced a series of organizational changes aimed at streamlining operations and improving efficiency. This includes a reduction in workforce as part of a broader restructuring effort. The company stated that these measures are necessary to adapt to changing market conditions and to position itself for future growth. The layoffs and restructuring are a response to the current economic climate, which demands greater agility and cost management. Given the evolving economic and political landscape, staying informed about these changes is crucial for understanding their impact on the company's strategic direction and employee relations.

Stock Options: Hershey offers stock options as part of its employee compensation packages. The options are typically granted to senior executives and key employees based on performance metrics and tenure. (Source: Hershey 2022 Annual Report, p. 58) RSUs: Restricted Stock Units are granted to employees as a form of long-term incentive. RSUs at Hershey are usually awarded to senior management and high-potential employees, vesting over a period of time. (Source: Hershey 2023 Proxy Statement, p. 34) Eligibility: Hershey's stock options and RSUs are generally available to senior executives, directors, and sometimes high-performing employees. These incentives are designed to align employee interests with company performance. (Source: Hershey 2024 Form 10-K, p. 45)

Employee Reviews: Employees have noted positive aspects of Hershey’s health benefits, including the comprehensive nature of their health coverage and wellness programs. However, there have been occasional comments about the high costs associated with some of the plans. Recent Changes: There has been no significant news about major changes to Hershey’s health benefits from employee reviews on Glassdoor.