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

Navigating Retirement at Timken: A Guide to Helping Increase Your Benefits in 2025

'Timken employees must remain vigilant in adapting to ongoing changes in retirement benefits, from COLA adjustments to TSP contributions, to ensure they are maximizing their retirement options and securing their financial future.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'Timken employees should take advantage of retirement tools like catch-up contributions and Medicare strategies to optimize their benefits, ensuring a smooth transition into retirement with comprehensive coverage and financial security.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

Key Updates on Retirement Benefits— Changes in annuities, cost-of-living adjustments, and Thrift Savings Plan (TSP) contributions.
Essential Insurance and Healthcare Considerations— Medicare enrollment strategies, FEGLI policy adjustments, and FEDVIP premium updates.
Financial and Estate Planning for a Comprehensive Future— Long-term care options, estate planning, and managing post-retirement benefits.

As 2025 unfolds, more options and considerations for Timken employees and retirees are emerging in the retirement landscape. You will find this guide useful for making the transition to retirement.

Updates on Annuities & Cost of Living Adjustments.

Here are a few tools and services from Timken to help you manage your annuity benefits. Annuity payments for retirees were adjusted in January 2025 for the 2024 cost-of-living adjustments (COLA), effective December 1, 2024. The COLA is 2.0% for Federal Employees Retirement System recipients and 2.5% for Civil Service Retirement System recipients. Social Security and military retirement payments also rise 2.5%. [Source needed]

Insurance Considerations

In retirement planning, insurance is an essential purchase. Regular reviews of your Federal Employees Group Life Insurance (FEGLI) policy are recommended as retirement approaches. Remember, FEGLI premiums increase every five years starting at age 50 - this can squeeze your budget. You can also enroll in Medicare Part A when you reach 65 to avoid penalties if you haven't claimed Social Security benefits yet.

Thrift Savings Plan Insights

Contributions to the Thrift Savings Plan (TSP) must increase. Those over 50 can contribute an additional USD 7,500 in 2025. To receive the full benefit of matching contributions, a minimum contribution of 5% per pay period is advised.

Medicare Enrollment Strategies

Crucial decisions regarding Medicare enrollment include when to enroll in parts A, B, C, and D. Combining your FEHB and TRICARE for Life with Medicare Parts A and B can lower your out-of-pocket costs.

The Federal Employees Dental and Vision Insurance Program (FEDVIP) is administered by the Federal Employees Dental and Vision Insurance Program (FEDVIP).

Participants in FEDVIP should know that 2025 premium changes could impact benefits. Update your enrollment details after a major life event or relocation for coverage continuity.

Long-Term Care & Retirement Planning.

Understand long-term care insurance and how it fits into your retirement planning. Check out the terms of your policy and how it fits in with other benefits you may be able to receive.

Estate Planning & Beneficiary Designations.

Estate planning and current beneficiary designations are critical to your assets. Regularly review and update these designations based on your personal situation.

Retirement Training and Resources

People nearing retirement can get training and tools. They include webinars and seminars on topics as simple as retirement planning to more complex issues like long-term care and Medicare options.

TSP Withdrawals and Regulations

New legislation affecting required minimum distributions (RMDs) and TSP withdrawals will help you manage your TSP account in retirement.

Retention of Personal Documents

Retaining copies of important documents, such as your proof of insurance and Notification of Personnel Action (SF-50s), is helpful when you retire to verify eligibility and service estimates.

Post-Retirement Federal Benefits Management

Staying connected with the Office of Personnel Management and other relevant agencies helps with benefit administration after retirement. Continuous management is needed for Medicare coordination, insurance coverage maintenance, and annuity adjustment.

So, in conclusion, 2025 brought many updates and revisions to retirement planning at Timken. Staying proactive in managing your retirement plans, understanding policy impacts, and making informed decisions will enhance your retirement outcomes for a full and fulfilling retirement.

Articles you may find interesting:

Sources:

1. The Thrift Savings Plan. 2025 TSP Contribution Limits . 13 Nov. 2024, www.tsp.gov .

2. Friedman, Drew. 2025 COLA Will Be 2.5%, but Some Federal Retirees Get a Smaller Percentage . Federal News Network , 10 Oct. 2024, www.federalnewsnetwork.com .

3. Internal Revenue Service. 401(k) Limit Increases to $23,500 for 2025, IRA Limit Remains $7,000 . 1 Nov. 2024, www.irs.gov .

4. Serving Those Who Serve Editorial Team. 2025 Social Security COLA Increase . Serving Those Who Serve , Oct. 2024, www.stwserve.com .

5. The Thrift Savings Plan. SECURE Act 2.0, Section 109: Higher Catch-Up Limit to Apply at Age 60, 61, 62, and 63 . Jan. 2025, www.tsp.gov .

What is the Timken 401(k) Savings Plan?

The Timken 401(k) Savings Plan is a retirement savings plan that allows employees to save for retirement through pre-tax and/or after-tax contributions.

How can I enroll in the Timken 401(k) Savings Plan?

You can enroll in the Timken 401(k) Savings Plan by completing the enrollment process through the Timken employee portal or by contacting the HR department for assistance.

What types of contributions can I make to the Timken 401(k) Savings Plan?

Timken allows employees to make pre-tax contributions, Roth (after-tax) contributions, and catch-up contributions if eligible.

Does Timken offer a company match for the 401(k) Savings Plan?

Yes, Timken provides a company match on employee contributions to the 401(k) Savings Plan, which helps to enhance your retirement savings.

What is the maximum contribution limit for the Timken 401(k) Savings Plan?

The maximum contribution limit for the Timken 401(k) Savings Plan is determined by the IRS and may change annually. Employees should check the latest IRS guidelines for the current limit.

When can I start withdrawing from my Timken 401(k) Savings Plan?

You can start withdrawing from your Timken 401(k) Savings Plan without penalty at age 59½, or earlier in cases of financial hardship, as defined by the plan.

How does Timken's company match work in the 401(k) Savings Plan?

Timken's company match typically matches a percentage of your contributions up to a certain limit, which is outlined in the plan documents.

Can I take a loan from my Timken 401(k) Savings Plan?

Yes, Timken allows participants to take loans from their 401(k) Savings Plan, subject to specific terms and conditions outlined in the plan.

What investment options are available in the Timken 401(k) Savings Plan?

The Timken 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

How can I change my contribution rate for the Timken 401(k) Savings Plan?

You can change your contribution rate for the Timken 401(k) Savings Plan by accessing your account through the employee portal or contacting HR for assistance.