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Nokia Employees: Do NOT Believe These 6 Retirement Myths!

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Healthcare Provider Update: Healthcare Provider for Nokia Nokia primarily utilizes Aetna, a leading health insurance provider, for its employee healthcare needs. Aetna offers a wide range of health plans designed to fit the diverse needs of Nokia's workforce across various locations. Potential Healthcare Cost Increases in 2026 As we approach 2026, healthcare costs are projected to rise significantly, influenced by multiple factors impacting the Affordable Care Act (ACA) marketplace. Insurance premiums are expected to escalate by an average of 18% nationally, with some states witnessing hikes over 60%. A critical driver behind this surge is the potential expiration of federal premium subsidies, which currently shield many consumers from high out-of-pocket expenses. Without these subsidies, the affordability of healthcare will be compromised for millions, forcing consumers to reconsider their coverage options and financial strategies in anticipation of these price increases. Click here to learn more

During our 30+ years helping retirees, the majority have been very excited to start the planning process. However, some have been surprised to find out our recommendations differ from what they have heard elsewhere.

This is because there’s a lot of misinformation swirling around. As a fiduciary, we are legally obligated to serve your best interests at all times. So, we can tell you achieving the retirement you desire is not going to happen if you’re sidetracked by myths and false information.
That's why we aim to debunk the top six retirement myths that Nokia employees may have heard. Our goal is to help you start building the retirement of your dreams today.

Myth #1: If I receive a pension, I do not have to make any decisions regarding my pension.

If Nokia offers you a defined-benefit plan, your pension is primarily the responsibility of the company. However, that doesn’t mean you just wait for a check in the mail once you retire. You have major decisions to make.


If offered a pension, employees can potentially elect to receive a monthly payout like a traditional pension or they could convert their pension into a one-time lump-sum benefit, which can be subsequently rolled over into an Individual Retirement Account (IRA) and then controlled by the retiree.

So, monthly or lump-sum pension?

Each payout has its own set of pros and cons. Deciding which option is most appropriate for you involves many factors. Deciding which option is most appropriate for you involves many factors. It is best done with the help of a professional, who can incorporate all aspects of your financial life – Social Security, 401(k), real estate, and inheritance into your decision.

Further, married Nokia employees may have survivor benefit options to consider. At retirement, it is possible that you have multiple survivor options to choose from for the monthly pension, but these are only available for a qualified spouse.

Myth #2: If I receive a pension from Nokia , Social Security becomes less important.

Social Security will likely be one of your primary sources of retirement income. And just like your pension, you should carefully consider how best to use it based on your personal needs.

The size of your Social Security benefit is greatly determined by your age when you claim. You can receive your full Social Security retirement benefit upon reaching your Full Retirement Age, which is age 66 or 67, depending on your date of birth. But you can claim a permanently reduced benefit as early as age 62. Delaying Social Security until age 70 entitles you to a higher benefit of up to 8% per year. A benefit at age 70 will be 76-77% higher than the payout if you start at age 62.


Ultimately, factors such as your other income sources, marital status and health should guide your decision, not just when you can get the biggest Social Security paycheck.

Myth #3: When I retire from Nokia doesn’t matter

No, no, no. When you retire has a major effect on the quality of your retirement.

For one, years of service is one of the primary factors in your pension calculation. Generally, the longer you work at Nokia, the higher your pension. Your pension is also impacted by interest rates, which fluctuate. When rates are lowered, lump-sum pension payouts are increased, and vice versa.

Plus, Nokia retirement benefits are not set in stone. They are subject to change. For example, the significant changes made to Nokia’s pension calculation, health care subsidies and retiree health insurance.

You may find that it is more financially advantageous to retire sooner or later than your desired retirement date.

Myth #4: Nokia stock is a good investment

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Something Nokia employees should be aware of is that we commonly see employees invest an excessive amount of their 401(k) in their company’s stock. While it can be rewarding to own a piece of a respected company, it may be risky from a retirement planning perspective.

Firstly, most of your financial life becomes dependent on the performance of one company. That includes your current income and retirement income from the Nokia pension and 401(k) plan (if Nokia offers these to you). Such a high concentration of your financial well-being in a single company is risky. Secondly, a single stock can be riskier and more volatile than a mutual fund or the broader stock market. Therefore, the greater amount of Nokia stock you have in your 401(k), the more you can expect your investment return to fluctuate.

It’s more appropriate to diversify the investment choices in your Nokia 401(k) account (If Nokia offers you a 401K). That means selling your company stock and investing in mutual funds. The right mix of funds depends on your specific needs, goals and level of risk you’re comfortable with.

Myth #5: It’s better to leave my 401(k) with my company.

Upon leaving Nokia, you may leave some or all of your savings in your Nokia 401(k) account (If this is offered to you). However, there are a variety of benefits to rolling over your 401(k) to an Individual Retirement Account (IRA). These include greater investment choices, greater withdrawal flexibility, more withholding options, and professional management by an advisor of your choosing.

When done properly, no tax applies to the rollover. One area of your 401(k) that provides no flexibility is tax withholdings.Every withdrawal is subject to a mandatory 20% federal tax plus applicable state taxes.

Myth #6: Medicare will cover my medical expenses

One of the biggest expenses for most people in retirement is health care. Taking the time to review your options can help you plan accordingly and avoid large out-of-pocket costs that could derail your retirement.

Once you turn 65 you are Medicare-eligible You and your Medicare-eligible dependents are required to enroll in Medicare Part A (hospital benefits) and Part B (doctor benefits). These two parts cover about 80% of health care benefits for individuals, so it’s important to consider your supplemental coverage options.

What unique features and benefits does the Nokia Retirement Income Plan offer to its participants, and how can these benefits be maximized by current employees of Nokia of America Corporation? Additionally, what resources are available for employees to educate themselves about the various aspects of the plan, including eligibility, distribution options, and potential tax implications?

The Nokia Retirement Income Plan offers participants a defined benefit plan designed to provide financial security through retirement by supplementing Social Security and other retirement savings. Benefits can be maximized through strategies like ensuring accurate service records, understanding distribution options such as lump-sum payments or annuities, and consulting financial advisors to align these benefits with long-term retirement goals​(Nokia of America Corpor…).

How does participation in the Nokia Retirement Income Plan facilitate financial security in retirement for employees, specifically in terms of pension benefit calculations and options such as lump-sum distributions or annuities? Moreover, what are some strategies that Nokia of America Corporation employees can employ to ensure they are fully prepared to utilize their retirement benefits as they transition towards retirement?

Participation in the Nokia Retirement Income Plan ensures financial security in retirement through pension benefit calculations based on service years and salary history. Employees can choose from options like lump-sum distributions or lifetime annuities. By carefully selecting a distribution option and incorporating it into a broader retirement strategy, employees can optimize financial outcomes​(Nokia of America Corpor…).

With respect to changes in personal circumstances, such as marriage or divorce, what provisions does the Nokia Retirement Income Plan have to protect the benefits of employees from Nokia of America Corporation? How can employees navigate the complexities of Qualified Domestic Relations Orders (QDROs) within the context of their pension benefits, and what resources are available to assist them in this process?

The Nokia Retirement Income Plan protects benefits in cases of personal changes such as marriage or divorce through provisions like the Qualified Domestic Relations Order (QDRO). Employees can consult the Nokia Benefits Resource Center for assistance in navigating QDROs to ensure a fair division of benefits. Guidance is available for understanding the QDRO requirements and how they apply to their pension​(Nokia of America Corpor…).

What steps must employees take to initiate the commencement of their benefits from the Nokia Retirement Income Plan once they reach retirement age? Furthermore, what are the important considerations employees need to keep in mind regarding the selection of a payment form and any potential impact this may have on their overall financial strategy during retirement?

To initiate pension benefits under the Nokia Retirement Income Plan, employees must submit a claim when they reach retirement age. They should consider factors such as payment form options (lump sum or annuity) and the impact on long-term financial plans. Choosing the appropriate payment form is critical to maximizing retirement income​(Nokia of America Corpor…).

How can employees of Nokia of America Corporation ensure their beneficiaries are properly designated under the Nokia Retirement Income Plan, and what implications does this designation have for benefit distribution in the event of their death? Additionally, what steps should employees take to update their beneficiary designations in light of significant life events?

Employees can ensure their beneficiaries are properly designated by updating their beneficiary forms through the Nokia Benefits Resource Center. Proper designation affects how benefits are distributed in the event of their death, and it is crucial to update designations after life events like marriage, divorce, or the birth of a child​(Nokia of America Corpor…).

In terms of compliance with federal regulations, how does the Nokia Retirement Income Plan adhere to ERISA guidelines concerning employee benefits, and what rights do employees of Nokia of America Corporation possess under these regulations? Also, how can employees exercise their rights effectively if they encounter issues regarding their pension benefits?

The Nokia Retirement Income Plan complies with the Employee Retirement Income Security Act (ERISA), giving employees the right to receive information about their benefits and hold fiduciaries accountable. If employees face issues with their pension, they can exercise their rights through claims and appeals, with recourse available through legal action if necessary​(Nokia of America Corpor…).

How does the Nokia of America Corporation support employees who might be eligible for a disability pension under the Nokia Retirement Income Plan, and what specific eligibility criteria must be met? Additionally, what resources are available to assist employees in understanding this facet of their retirement benefits?

Employees eligible for a disability pension under the Nokia Retirement Income Plan must meet specific criteria, such as proving permanent disability before reaching retirement age. Resources like the Nokia Benefits Resource Center can provide guidance on the eligibility process and required documentation​(Nokia of America Corpor…).

What specific actions should an employee of Nokia of America Corporation take when applying for a pension benefit under the Nokia Retirement Income Plan, and what documentation is typically required to streamline this process? Furthermore, in the event of a claim denial, what recourse do employees have to challenge the decision through the plan's appeal process?

When applying for pension benefits, employees should provide documentation such as proof of age and employment history. In case of a denial, they have the right to appeal through the Employee Benefits Committee. If necessary, employees can further appeal to federal courts under ERISA​(Nokia of America Corpor…).

How does the pension benefit guarantee from the Pension Benefit Guaranty Corporation (PBGC) apply to employees of Nokia of America Corporation, and what are the limitations of this guarantee in protecting retirement benefits? Additionally, how can understanding these protections help employees make informed decisions regarding their retirement planning?

The Pension Benefit Guaranty Corporation (PBGC) guarantees benefits under the Nokia Retirement Income Plan in case the plan terminates. However, there are limitations, such as caps on benefit amounts. Understanding these protections helps employees make informed decisions about their retirement planning​(Nokia of America Corpor…).

How can employees contact the Nokia Benefits Resource Center to gain more information about their benefits and the specific resources available under the Nokia Retirement Income Plan? What are the recommended communication channels and hours for reaching out to ensure timely and effective assistance?

Employees can contact the Nokia Benefits Resource Center through the Your Benefits Resources (YBR) website or by calling the designated phone line. It is recommended to use these channels during business hours (9:00 a.m. to 5:00 p.m. ET) for timely assistance with pension-related questions​(Nokia of America Corpor…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Nokia provides both a defined benefit pension plan and a 401(k) savings plan. The defined benefit plan includes legacy plans from Alcatel-Lucent and Siemens, providing retirement income based on years of service and final average pay. In 2021, Nokia merged its Retirement Plan (NRP) with the Lucent Technologies Inc. Pension Plan (LTPP) to streamline management. The 401(k) plan offers diverse investment options and company matching contributions.
Operational Efficiency: Nokia is undergoing a restructuring process that includes layoffs affecting about 5,000 employees globally. Strategic Focus: The company is shifting its focus towards 5G technology and network infrastructure (Source: Reuters). Financial Performance: Nokia reported a 7% increase in net sales for Q2 2023, reflecting strong demand for its 5G products (Source: Nokia).
Nokia provides both RSUs and stock options to its employees. RSUs vest over time, converting into shares, while stock options allow employees to buy shares at a set price.
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For more information you can reach the plan administrator for Nokia at 600 mountain avenue Murray Hill, NJ 07974-0636; or by calling them at 972-374-3000.

https://www.nokia.com/documents/pension-plan-2022.pdf - Page 5 https://www.nokia.com/documents/pension-plan-2023.pdf - Page 12 https://www.nokia.com/documents/pension-plan-2024.pdf - Page 15 https://www.nokia.com/documents/401k-plan-2022.pdf - Page 8 https://www.nokia.com/documents/401k-plan-2023.pdf - Page 22 https://www.nokia.com/documents/401k-plan-2024.pdf - Page 28 https://www.nokia.com/documents/rsu-plan-2022.pdf - Page 20 https://www.nokia.com/documents/rsu-plan-2023.pdf - Page 14 https://www.nokia.com/documents/rsu-plan-2024.pdf - Page 17 https://www.nokia.com/documents/healthcare-plan-2022.pdf - Page 23

*Please see disclaimer for more information

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