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Embracing a Side Hustle After Retirement: A Thriving Guide for Xylem Employees

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Healthcare Provider Update: Healthcare Provider for Xylem Xylem Inc. primarily relies on Accenture for its health and wellness programs, a strategic partnership aimed at enhancing employee benefits management. Healthcare Cost Increases in 2026 As 2026 approaches, Xylem employees may face significant increases in healthcare costs amid anticipated sharp hikes in ACA premiums. Reports indicate that some states could experience premium increases exceeding 60%, primarily driven by the expiration of enhanced federal subsidies and rising medical costs. Consequently, many employees could see their out-of-pocket expenses rise substantially, making it vital to evaluate health plans carefully and consider proactive financial strategies for managing these heightened costs. Adjustments in employer-sponsored plans may further shift more healthcare expenses onto employees, amplifying the need for strategic preparation. Click here to learn more

In the current retirement planning landscape at Xylem, 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 Xylem 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 Xylem. 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 Xylem 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 Xylem's 401(k) plan?

Xylem's 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them prepare for retirement.

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

Xylem offers a matching contribution to employee 401(k) plans, typically matching a percentage of the employee's contributions up to a certain limit.

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

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

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

Xylem's 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 Xylem take loans against their 401(k) savings?

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

What happens to my 401(k) if I leave Xylem?

If you leave Xylem, you have several options for your 401(k), including rolling it over to a new employer's plan, transferring it to an IRA, or cashing it out (though cashing out may incur taxes and penalties).

How can I access my 401(k) account information at Xylem?

Employees can access their 401(k) account information through the designated online portal provided by Xylem's 401(k) plan administrator.

Does Xylem offer financial education resources for 401(k) participants?

Yes, Xylem provides financial education resources, including workshops and online tools, to help employees make informed decisions about their 401(k) savings.

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

The vesting schedule for Xylem's matching contributions typically requires employees to work for a certain number of years before they fully own the matched funds.

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

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

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For more information you can reach the plan administrator for Xylem at 301 Water St. SE Washington, DC 20003; or by calling them at 914-323-5700.

*Please see disclaimer for more information

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