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Balancing Social Security and Investments: A Comprehensive Retirement Guide for TEGNA Employees

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In the realm of retirement planning, TEGNA employees face numerous dimensions that go beyond mere tax calculations, highlighting a blend of financial and non-financial considerations essential for a holistic approach. Christine Benz, in her latest work 'How to Retire: 20 Lessons for a Happy, Successful and Wealthy Retirement,' together with Social Security professional Mary Beth Franklin, explores the implications of filing for Social Security early and the potential of investing those funds in the market.

Christine Benz, a noted retirement strategy professional, emphasizes the importance of recognizing that retirement planning is more than a series of calculations; it is a deep dive into the next phase of life. Her discussions with Mary Beth Franklin offer subtle insights into strategic considerations, including the possibility of early Social Security benefits claims to leverage in the investment market.

Exploring Early Social Security Claims Through an Investor's Lens

The debate on early Social Security claims is characterized by the possibility of outpacing the benefits of deferred claims through savvy investments. Mary Beth Franklin highlights the inherent diversity in this method: investment returns can vary significantly, leading to substantial gains or losses. The stability of a risk-free investment like a Certificate of Deposit (CD) contrasts sharply with the potential volatility of the stock market. Historical data shows that over the past decade, CDs and similar vehicles have offered minimal returns, while deferring Social Security could result in an 8% annual increase in benefits for TEGNA employees.

Considering Social Security's Cost of Living Adjustments

Since 1975, Social Security benefits have been adjusted for inflation, ensuring that retirees' purchasing power does not diminish over time.  This adjustment, tied to the Consumer Price Index, has seen fluctuations, with a significant increase of 8.7% in 2023, the largest in over 40 years, followed by a 3.2% increase in 2024 . These adjustments claim that even before claiming Social Security, any inflation-related increases are factored into future benefits, reinforcing the program's role in maintaining financial stability amid inflationary pressures for TEGNA retirees.

Breakeven Analysis: A Tool to Anticipate Social Security Claims

Breakeven analysis is critical for deciding when to claim Social Security benefits. This analytical method determines how long it takes to financially benefit from delaying Social Security claims. For instance, claiming reduced benefits at 62 versus waiting until 70 can result in significant lifetime financial differences, with breakeven points varying based on individual circumstances. Notably, a person living beyond the age of 78 would benefit from more lifetime benefits if they delay claiming until full retirement age or later, a strategic decision for TEGNA employees.

Marital Considerations in Claiming Strategies

The implications of Social Security decisions extend beyond individual circumstances, particularly concerning married couples. When one spouse passes before claiming their benefits, the surviving spouse is entitled to survivor benefits, which can be a significant financial resource. In cases where one spouse outlives the other by many years, these benefits can provide substantial financial support, highlighting the importance of strategic planning to optimize Social Security benefits at TEGNA.

Psychological and Strategic Consequences of Early Claiming

Mary Beth Franklin underscores the psychological factors that motivate early claims, such as concerns about the program's solvency and the desire to 'take the money and run.' However, this strategy can lead to significant financial reductions, akin to selling assets in a declining market. These decisions result in financial losses, emphasizing the importance of making choices based on sound legal and financial advice rather than fear or speculation.

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In conclusion, strategic considerations regarding when and how to claim Social Security are complex and depend on a variety of factors such as market conditions, personal health, and marital status. Retirement professionals emphasize the importance of viewing Social Security claims through an investment lens, considering potential market returns versus increases from deferred benefits.

As we continue to face this decision, it is clear that adopting a comprehensive approach, which carefully balances the guaranteed benefits of delayed Social Security against potential gains from other investment sources, is of paramount importance. This perspective not only aids in a more stable financial situation but also closely aligns with the realities of age and longevity in our current society.

According to research, it is crucial for individuals approaching retirement to diversify their income sources.  A study by the American Association of Retired Persons (AARP) in August 2024 shows that retirees  who supplement their Social Security with diverse income sources, such as IRAs, 401(k)s, and personal investments, report a 20% higher post-retirement financial satisfaction. This method reduces dependence on Social Security alone and provides a shield against market volatility, suggesting a strategic mix of delayed Social Security claims and targeted investments to optimize retirees' financial outcomes, especially valuable for those at TEGNA planning for a stable and successful retirement.

What is TEGNA's 401(k) plan?

TEGNA's 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 after-tax (Roth) basis.

How can I enroll in TEGNA's 401(k) plan?

You can enroll in TEGNA's 401(k) plan by logging into the employee benefits portal and following the enrollment instructions provided.

What is the employer match for TEGNA's 401(k) plan?

TEGNA offers a competitive employer match for contributions made to the 401(k) plan, which helps employees boost their retirement savings.

When can I start contributing to TEGNA's 401(k) plan?

Employees at TEGNA can start contributing to the 401(k) plan after completing their eligibility requirements, typically within the first few months of employment.

What types of investment options are available in TEGNA's 401(k) plan?

TEGNA's 401(k) plan includes a variety of investment options, such as mutual funds, target-date funds, and company stock, allowing employees to diversify their portfolios.

Can I change my contribution amount to TEGNA's 401(k) plan?

Yes, employees can change their contribution amounts to TEGNA's 401(k) plan at any time through the employee benefits portal.

Does TEGNA offer a Roth 401(k) option?

Yes, TEGNA offers a Roth 401(k) option, allowing employees to make after-tax contributions and potentially enjoy tax-free withdrawals in retirement.

What happens to my TEGNA 401(k) if I leave the company?

If you leave TEGNA, you have several options for your 401(k), including cashing out, rolling it over to another retirement account, or leaving it with TEGNA.

Is there a vesting schedule for TEGNA's 401(k) employer match?

Yes, TEGNA has a vesting schedule for the employer match, meaning that employees must work for the company for a certain period before they fully own the matched funds.

How can I access my TEGNA 401(k) account?

You can access your TEGNA 401(k) account by logging into the designated retirement plan website or mobile app provided by the plan administrator.

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For more information you can reach the plan administrator for TEGNA at , ; or by calling them at .

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