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Why Avery Dennison Employees Should Consider Delaying Retirement for Financial Stability

'Avery Dennison employees facing economic uncertainty should consider delaying retirement, as continuing to work can provide financial stability, optimize Social Security benefits, and offer additional time for investments to grow—ultimately enhancing long-term retirement security.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Avery Dennison employees should view delaying retirement not just as a financial strategy but as a means to ensure a fulfilling retirement, allowing for greater financial flexibility and stronger community connections during uncertain times.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

Economic Uncertainty and Retirement Delays : How rising inflation, market volatility, and potential recessions are causing Avery Dennison employees to rethink their retirement plans.
Financial Strategies for Extending Retirement : The benefits of postponing retirement, managing Social Security and investments, and maintaining financial stability.
The Role of Social Connections in Retirement : Why maintaining strong relationships and community involvement is important for well-being after retirement.

As many Avery Dennison employees approach retirement age, rising economic uncertainty is prompting a reevaluation of retirement plans. Factors such as inflation, market volatility, and potential recessions are causing many to delay their retirement and reconsider their financial situation. Professionals in finance and retirement planning emphasize the value of extending one's working years when possible, as it can help support retirement finances. This is especially true for those nearing retirement, given the unpredictability of government policies, job market shifts, and economic slowdowns.

Drawing from the advice of financial planners, aging professionals, and retirees facing similar challenges, this article provides valuable insights into actions Avery Dennison employees can take to improve their financial future in uncertain times. The guidance presented here offers essential tools for making informed retirement decisions amid economic turmoil.

The Economic Landscape: Unpredictability and Delays

For those close to retirement, the current economic climate presents numerous challenges. Many Avery Dennison employees worry about the stability of their retirement savings, especially as inflation rises and economic growth slows. The future of retirement planning becomes even more uncertain due to market fluctuations and global economic concerns.

The prospect of economic instability, such as a potential recession, often leads people to question if their retirement funds will be enough. Some financial professionals recommend delaying retirement for a few more years as one of the best strategies to help funds last throughout retirement. Continuing to work provides a steady income and additional contributions to retirement savings, acting as a buffer against inflation and market fluctuations.

The Benefits of Postponing Retirement

Delaying retirement can bring significant financial benefits for those who are able to continue working. According to Neva Bradley, a financial advisor with The Retirement Group, many older Americans, including those at Avery Dennison, could benefit from extending their careers. 'There are both financial and non-financial benefits available to people who are able to and interested in working later in life,' says Bradley. 'Depending on your personal situation, this is a step well-worth considering.'

Recent LinkedIn statistics show that nearly 13% of baby boomers returned to the workforce in 2023, marking a five-year high in the 'unretirement' trend. ¹ This growing trend reflects how more Americans, including many at Avery Dennison, are choosing to work beyond the typical retirement age. Part-time work helps many employees manage the financial strains caused by inflation and unexpected expenses.

Financial Strategies: Managing Social Security and Investments

Financial professionals often advise against making drastic changes to retirement portfolios during times of market uncertainty. While it may seem tempting to adjust investments during volatile periods, maintaining a steady approach typically offers better long-term results. Bradley recommends resisting hasty reactions to market dips and sticking to a long-term investment strategy.

Those who remained committed to their investment plans during past recessions, such as the 2008 financial crisis, have often seen their savings grow. Despite short-term market fluctuations, sticking with a well thought-out investment strategy has proven beneficial in the long run.

In addition to managing investments, delaying Social Security payments can lead to larger monthly payouts later in life. By waiting until full retirement age, typically 67, Avery Dennison employees can receive higher monthly benefits. This strategy not only increases retirement income but also gives investments and savings more time to grow.

Planning for a Holistic Retirement: Focusing on Lifespan

Financial considerations are important, but other factors also affect retirement well-being. Syracuse University sociology professor Madonna Harrington Meyer emphasizes that retirement planning should go beyond finances. Strong relationships and a healthy social life are crucial to happiness and longevity in retirement.

A solid social network serves as a buffer against life's challenges, such as the loss of a spouse, illness, or unexpected financial setbacks. Engaging with the community through volunteering, part-time work, or spending time with family can provide a sense of purpose and inclusion. Meyer notes that the COVID-19 pandemic highlighted the negative impact of loneliness on physical and emotional health, making social connection planning just as important as financial planning for a fulfilling retirement.

The Value of a Support Network

For older Americans, including Avery Dennison employees, social isolation is one of the biggest challenges, particularly during times of economic uncertainty. A 2024 survey by AARP and the University of Michigan found that nearly one-third of older adults report feeling lonely frequently or occasionally. ² This isolation can significantly impact both mental and physical health.

The combination of financial instability and social isolation can create a compounded effect, making it difficult for retirees to maintain both financial stability and emotional well-being. Joseph Coughlin, director of MIT's AgeLab, advocates for a 'holistic retirement strategy' that integrates both social and financial planning to support a happy post-retirement life.

The Role of Relationships and Community

Retirement isn't just about finances—strong relationships and community involvement play a key role in long-term happiness. Meyer suggests focusing on the most meaningful relationships, whether it's reconnecting with old friends, spending time with family, or forging new connections. As economic uncertainty grows, community involvement becomes even more critical for providing emotional and social stability during unpredictable financial times.

In addition to fulfilling financial needs, part-time work, volunteering, and caring for loved ones offer valuable social interactions that can contribute to a happy retirement. These activities not only provide purpose but also strengthen relationships, which can improve overall retirement happiness and longevity.

Final Thoughts: A Methodical Approach to Retirement

While the current economic environment presents challenges for those nearing retirement, it also offers opportunities for thoughtful planning. Delaying retirement—whether by working longer or taking on part-time employment—can act as a financial cushion during uncertain times. In addition to financial planning, prioritizing social connections and support networks is vital for maintaining both physical and mental well-being in retirement.

Professionals and financial planners agree that Avery Dennison employees, like many others, will be better prepared for retirement challenges in the coming years by adopting a comprehensive retirement strategy that balances finances with a focus on community and well-being. By taking this holistic approach and delaying retirement when possible, employees can improve their chances of enjoying a financially stable and fulfilling retirement.

Additionally, delaying retirement can offer other benefits. Staying employed longer delayswithdrawals from retirement plans, such as 401ks or IRAs, giving them a longer time to grow. Employees who wait until full retirement age or beyond can also enjoy higher Social Security payments, which may help offset inflationary costs. According to a March 2023 National Bureau of Economic Research (NBER) study, delaying retirement by just a few years can increase lifetime retirement income and reduce the risk of outliving savings.

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Sources:

1. LinkedIn News. ' The return of the retirees: Why baby boomers are rejoining the workforce ,' by Taylor Borden. 27 June 2024.

2. U.S. News. ' 1 in 3 Older Americans Say They Feel Lonely, Poll Finds ,' 9 Dec. 2024.

Other resources:

1. Edward Jones. 'The Benefits of Delaying Retirement.' Edward Jones , February 2025.

2. Charles Schwab. 'Market Volatility and Your Retirement: What Every Saver Needs to Know.' Charles Schwab , May 2025.

3. 'Social Connections and Vibrancy of Village Ensure an Enjoyable Life.' The Australian , January 2025.

4. Investor's Business Daily. 'Inflation Is Your Biggest Retirement Risk. Here's How To Fight It.' Investor's Business Daily , May 2025.

5. Saint John's Milwaukee. 'Social Networks Boost Happiness in Retirement Years.' Saint John's Milwaukee , April 2025.

How does the transition of the Avery Dennison U.S. Pension Plan to a group annuity contract affect current employees who are nearing retirement, and what steps should they consider taking during this transition to ensure their benefits are secure from Avery Dennison?

Current Employees Nearing Retirement: The transition to a group annuity contract should not affect the accrued benefits of current employees nearing retirement. The terms of the annuity payments will match those provided by the previous pension plan. Employees should ensure their personal information is updated and consult with the Avery Dennison Retirement Center to understand the timing of their benefits commencement during the transition period.

In what ways does Avery Dennison support employees who are considering their options for retirement benefits, particularly those who may not have previously explored their pension plan details prior to the transition to an insurer?

Support for Employees Exploring Retirement Options: Avery Dennison assists employees by providing detailed information through their retirement center and online resources. Employees are encouraged to review the changes and implications of the annuity transition and contact the retirement center for personalized advice, particularly if they have not previously explored their pension plan details.

Can you elaborate on the implications of the group annuity contract for employees who have recently retired from Avery Dennison, particularly concerning how their benefits are administered compared to the previous pension plan structure?

Recently Retired Employees: For those who have recently retired, the administration of their benefits will shift from Avery Dennison to the selected insurer but this should not change the amount, timing, or form of the benefits they receive. This ensures continuity in the administration of benefits without affecting the retirees directly.

For employees currently receiving benefits through Avery Dennison, how will the transition to the selected insurer impact the continuity and reliability of their monthly payments, and what measures are in place to safeguard these payments?

Continuity and Reliability of Payments: The transition involves the selection of a highly rated insurer, ensuring the reliability of ongoing monthly payments. Avery Dennison has put measures in place, including a thorough selection process involving an independent fiduciary, to safeguard these payments.

What are the specific protections offered to beneficiaries under the group annuity contracts once the Pension Plan transitions away from Avery Dennison's administration, and how do these protections differ from those provided under the Pension Benefit Guaranty Corporation (PBGC)?

Protections for Beneficiaries: After the transition, the state guaranty associations, rather than the Pension Benefit Guaranty Corporation (PBGC), will offer protection to beneficiaries. This shift means that while the federal insurance via PBGC will no longer apply, state-level insurance, which has its own limits and guarantees, will take over.

In light of the transition to the group annuity, how should employees at Avery Dennison go about updating their personal information, such as addresses or banking details, and what timelines should they be aware of during this process?

Updating Personal Information: Employees should update their personal details such as addresses or banking information through the Avery Dennison Retirement Center by specific deadlines during the transition period. Post-transition, such updates should be made directly with the new insurer.

How does Avery Dennison ensure that the financial health of the selected insurer for the group annuity contract is sufficient to meet the obligations to its retirees, and what standards are applied during the selection process?

Financial Health of the Insurer: Avery Dennison ensures the financial adequacy of the selected insurer through a rigorous selection process managed by an independent fiduciary. This includes evaluations of the insurer's financial stability, claims-paying ability, and overall business practices.

After the transition to an insurer is complete, what should employees of Avery Dennison do if they have questions regarding their retirement benefits, and how will communication be handled moving forward to ensure clarity and support?

Post-Transition Communication: After the transition, employees should direct their questions regarding retirement benefits to the selected insurer's service center. Avery Dennison will provide contact details and further instructions in a welcome kit following the transition.

How does the U.S. tax legislation impacts the retirement benefits of Avery Dennison employees who are transitioning to a group annuity, particularly concerning taxation of these annuity payments during retirement?

Impact of U.S. Tax Legislation: The transition to a group annuity may affect the taxation of retirement benefits. Employees are advised to consult with tax professionals to understand the specific impacts based on their personal circumstances.

For employees seeking more information regarding the details of their retirement benefits and the implications of the insurer transition, how can they contact Avery Dennison to discuss their specific circumstances and gain clarity on any outstanding questions?

Accessing Further Information: Employees seeking more details about their retirement benefits post-transition can contact Avery Dennison through their designated Retirement Center or access information via the company's dedicated benefits website. This is crucial for obtaining clarity on specific circumstances and outstanding queries regarding the transition.

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For more information you can reach the plan administrator for Avery Dennison at 207 Goode Ave Glendale, CA 91203; or by calling them at +1 626-304-2000.