2024 Tax Changes and Inflation

It is important to be aware of any recent adjustments made by the IRS. The following will be the primary elements affecting employees:

The standard deduction for 2024 will rise to $21,900 for heads of household, $29,200 for joint filers, and $14,600 for single taxpayers and married filers filing separately.

Individuals who are blind or over 65 can increase their standard deduction by an extra $1,550. If you are not a surviving spouse or are not married, that amount increases to $1,950.

Contributions to retirement accounts: You can lower your tax liability by making contributions to your employer's 401(k) plan, and the maximum amount you can save has been raised for 2024. In 2024, the maximum contribution amount that people can make to their 401(k) plans will rise to $23,000, from $22,500 in 2023. For workers who are 50 years of age or older, the maximum catch-up contribution will rise to $7,500.

You should be aware of the following significant changes to the Earned Income Tax Credit (EITC) if you are a taxpayer who works for a corporation:

• For qualifying taxpayers with three or more qualifying children, the maximum Earned Income Tax Credit amount for tax year 2024 is $7,830, up from $7,430 for tax year 2023.
• Those who are married and file separately may be eligible: If you fulfill certain requirements, you may be eligible to claim the EITC as a married filing separately. This was not accessible the year before.
• Cash charitable contribution deduction: The special deduction that let individuals who are not itemizers to claim a deduction of up to $300 (or $600 for married couples filing jointly) for cash gifts to approved charities has ended.

Changes to the Child Tax Credit

• For children aged five and under, the maximum tax credit is $2,000; for children aged six to seventeen, it is $3,000 per qualified child. Furthermore, unlike in 2023, you are not eligible to get a portion of the credit in advance.
• If your adjusted gross income is less than $200,000 if you're filing singly or less than $400,000 if you're filing a joint return with a spouse, you qualify for the Child Tax Credit as a parent or guardian.
• A partial refundability of 70% that applies to people whose tax liability is less than the credit amount.

 

2024 Tax Brackets

 

Over time, inflation diminishes buying power because rising prices result in a basket of products becoming more expensive. You will need to account for increasing costs in your plan if you want to keep your retirement quality of living the same when you leave your business. Although the Federal Reserve targets an annual inflation rate of 2%, in 2023 that rate skyrocketed to 4.9%, a sharp rise from 1.4% in 2020. Even though costs have increased significantly overall, there are certain areas, like healthcare, to be mindful of if you are close to or already retired from your employer. All of these elements must be taken into account when creating a comprehensive retirement plan from your employer.

*Source: Forbes, Bankrate, Yahoo, IRS.gov

Recent Layoff Announcements & Other FedEx News

Operational Restructuring: FedEx intends to combine its Ground and Express delivery networks in order to simplify operations and cut expenses. By 2025, this reorganization should save the business $2 billion (Source: Reuters). Layoffs and Buyouts: As part of its cost-cutting efforts, FedEx has announced voluntary buyouts for a select group of employees (Source: Wall Street Journal). Financial Performance: FedEx reported solid earnings in the most recent quarter despite these changes, primarily due to higher rates and higher shipment volumes (Source: FedEx).

Blogs You May Enjoy:

Planning Your FedEx Retirement

Planning for retirement is a verb. And whether you are twenty or sixty, you have to take consistent action.

As a matter of fact, the majority of Americans are unaware of the amount of money they will actually need or should save.

We hope this guide gives you a good overview of the steps to take, regardless of your age or where you are in the planning process. It also includes resources that can help you make the most of your benefits and transition into retirement.

It is common knowledge that saving and investing are important, but you lack the knowledge or experience to determine whether your retirement savings are sustainable.

A separate study by Russell Investments, a large money management firm, came to a similar conclusion . Russell estimates a good financial advisor can increase investor returns by 3.75 percent.""

Source: Is it Worth the Money to Hire a Financial Advisor?, the balance, 202

It is important to begin saving as soon as possible. Compounding can have a big impact on your future savings if you have time on your side. Maintaining and optimizing your 401(k) contributions after you have commenced can be crucial and result in significant benefits in the future.

There's a 79% potential boost in wealth at age 65 over a 20-year period when choosing to invest in your company's retirement plan.

*Source: Bridging the Gap Between 401(k) Sponsors and Participants, T.Rowe Price, 2020

As decades go by, you’re likely full swing into your career at your company and your income probably reflects that. However, the challenges of saving for retirement start coming from large competing expenses: a mortgage, raising children, and saving for their college.

One of the classic planning conflicts is saving for retirement versus saving for college. Most financial planners will tell you that retirement from your company should be your top priority because your child can usually find support from financial aid while you’ll be on your own to fund your retirement.

Our recommendations for retirement savings always take into account your particular financial status and aspirations. Nonetheless, during your 30s and 40s, think about setting aside at least 10% of your income for retirement funds.

When you reach your 50s and 60s, you should be at the height of your earning potential and have some of your biggest expenses—like a mortgage or raising children—behind you or shortly in the rearview mirror. Now could be a good time to see whether you can increase your retirement savings target to 20% or higher of your income. This may be the last chance that many individuals have to put money down.

Employees who are 50 years of age or older in 2024 have the option to contribute up to $23,000 to their 401(k) or retirement plan. After they reach this cap, they can make additional $7,500 in catch-up payments, for a total annual contribution cap of $30,500. Every year, these caps are revised to account for inflation.

According to a 2022 Principal Financial Group study, 62% of employees said that their employer's 401(k) contributions were very crucial to achieving their retirement objectives.

As per the "2022 Financial Life Benefit Impact Report" published by Bank of America, out of the eligible employees who participated in a 401(k) plan, 58% of them contributed less than $5,000 in the current year.

Less than one in ten participants' contributions, as allowed by IRS Section 402(g) and set at $23,000 for 2024, were determined to have exceeded this ceiling.

According to a Financial Engines report published in 2020, "Missing Out: How Much Employer 401(k) Matching Contributions Do Employees Leave on the Table?", workers who don't take full advantage of their employer match usually leave $1,336 in additional retirement savings on the table annually.

You aren't receiving the entire business match, for instance, if your employer will match up to 3% of your plan contributions and you only contribute 2% of your salary. Your firm is now matching the whole 3% of your contributions, for a total combined contribution of 6%, just by increasing your contribution by 1%. You aren't throwing money away by doing this.

 

It might be challenging to decide what to do with your hard-earned retirement savings, whether you're moving jobs or retiring from your employer. The bulk of your retirement assets may be in a company-sponsored plan, such a 401(k) or pension, but how much do you actually know about the plan's operation?

There are several regulations that differ between retirement plans; these include early withdrawal penalties, interest rate effects, age restrictions, and intricate tax implications.
The secret to a successful retirement plan spending strategy is to increase your investment balance while lowering taxes. The Retirement Group can assist you in making the most out of your company's 401(k) plan and comprehending how it fits into your entire financial plan.

Your FedEx 401(k) Plan

New FedEx 401(k) Savings Plan (effective 1/1/22; non- pension plan participants)

Workers are urged to sign up for a 401(k) savings plan as soon as possible. The retirement benefits offered by FedEx have changed to become a 401(k) Plan with a larger company match.

Your Contributions

Pre-tax contributions range from 1% to 50% of your qualifying income, plus, if you qualify, 1% to 30% in catch-up payments.

Employees who do not receive high compensation may also make an after-tax contribution of 1% to 20%. After-tax contributions are not matched by the company.

Eligibility

One month of service and age 21.

Vesting

You are vested in the Company match after one year of elapsed service (12 months of employment).

You are vested immediately in your
payroll contributions.

A Participant Distribution Notice will be mailed to you if you have funds in your 401(k) plan at retirement. This notice will show the current value that you are eligible to receive from each plan and explain your distribution options. It will also tell you what you need to do to receive your final distribution. Please call The Retirement Group at (800)-900-5867 for more information and we can get you in front of a retirement-focused advisor.

Next Step:

• Watch for your Participant Distribution Notice and Special Tax Notice Regarding Plan Payments. These notices will help explain your options and what the federal tax implications may be for your vested account balance.
• "What has Worked in Investing" & "8 Tenets when picking a Mutual Fund".
• To learn about your distribution options, call The Retirement Group at (800)-900-5867. Click our e-book for more information on "Rollover Strategies for 401(k)s". Use the Online Beneficiary Designation to make updates to your beneficiary designations, if needed.
  

 

Note: If you voluntarily terminate your employment from your company, you may not be eligible to receive the annual contribution.

More than half of plan members acknowledge they lack the knowledge, interest, or time necessary to manage their 401(k) investments. But the benefits of getting help goes beyond convenience. Studies like this one, from Charles Schwab, show those plan participants who get help with their investments tend to have portfolios that perform better: The annual performance gap between those who get help and those who do not is 3.32% net of fees. This means a 45-year-old participant could see a 79% boost in wealth by age 65 simply by contacting an advisor. That’s a pretty big difference.

Getting help can be the key to better results across the 401(k) board.

According to a Charles Schwab study, seeking independent professional advice consistently yields a number of favorable results. They include:

• Improved savings rates – 70% of participants who used 401(k) advice increased their contributions.
• Increased diversification – Participants who managed their own portfolios invested in an average of just under four asset classes, while participants in advice-based portfolios invested in a minimum of eight asset classes.
• Increased likelihood of staying the course – Getting advice increased the chances of participants staying true to their investment objectives, making them less reactive during volatile market conditions and more likely to remain in their original 401(k) investments during a downturn. Don’t try to do it alone. Get help with your company's 401(k) plan investments. Your nest egg will thank you.

 

In-Service Withdrawals

In general, if you meet the requirements listed below, you can take withdrawals from your account while you are still employed.

It is significant to note that some withdrawals are liable to ordinary federal income tax and, in the case that the withdrawal is made before the age of 59½, an additional 10% penalty tax may apply. You can determine if you’re eligible for a withdrawal, and request one, online or by calling the FedEx Benefits Center.

Rolling Over Your 401(k) 

An in-service dividend can be rolled over to an IRA as long as the plan participant is under 72 years old. Both the required 20% tax withholding and the 10% early withdrawal penalty would be waived with a direct rollover. Additional information and potential restrictions on rollovers and withdrawals are detailed in your company's plan summary.

When you need money, you should always think about taking a loan from the plan rather than making a withdrawal since it will never be taken out of your account and will be taxed. Loans include repayment requirements and are not taxable, in contrast to withdrawals (unless you fail to repay them). Certain situations, such as hardship withdrawals, prohibit withdrawals unless the entire loan amount offered by the employer plan has also been taken out.

It is important for you to be aware that the plan administrator of your organization has the authority to alter the withdrawal policies at any moment and to impose further limitations on the amount of withdrawals that can be made for administrative or other purposes. Any such limitations will be communicated to all plan members, and they are applicable to all corporate workers equally.

Borrowing from your 401(k)

Must you? You might require a large sum of money for other reasons, such as a major medical emergency, job loss, or some other circumstance. Banks make you jump through too many hoops for a personal loan, credit cards charge too much interest, and … suddenly, you start looking at your 401(k) account and doing some quick calculations about pushing your retirement off a few years to make up for taking some money out.

We understand how you feel: It’s your money, and you need it now. But, take a second to see how this could adversely affect your retirement plans.

Consider these facts when deciding if you should borrow from your 401(k). You could:

Lose growth potential on the money you borrowed.
Deal with repayment and tax issues if you leave your employer.
Repayment and tax issues, if you leave your employer.

Net Unrealized Appreciation (NUA)

When you qualify for a distribution, you have three options:

• Roll-over your qualified plan to an IRA and continue deferring taxes.
• Take a distribution and pay ordinary income tax on the full amount.
• Take advantage of NUA and reap the benefits of a more favorable tax structure on gains.

 

How does Net Unrealized Appreciation work?

First an employee must be eligible for a distribution from their qualified company-sponsored plan. Generally, at retirement or age 59 1⁄2, the employee takes a 'lump-sum' distribution from the plan, distributing all assets from the plan during a 1-year period. The portion of the plan that is made up of mutual funds and other investments can be rolled into an IRA for further tax deferral. The highly appreciated company stock is then transferred to a non-retirement account.

The tax benefit comes when you transfer the company stock from a tax-deferred account to a taxable account. At this time, you apply NUA and you incur an ordinary income tax liability on only the cost basis of your stock. The appreciated value of the stock above its basis is not taxed at the higher ordinary income tax but at the lower long-term capital gains rate, currently 15%. This could mean a potential savings of over 30%.

You may be interested in learning more about NUA with  a complimentary one-on-one session with a financial advisor from The Retirement Group.

IRA Withdrawal

When you qualify for a distribution, you have three options:

A variety of retirement accounts, including taxable accounts, 401(k)s, and IRAs, may make up your retirement assets.

So, after leaving your company, how should you use your retirement income as efficiently as possible?

If your retirement income needs are more likely to be met by taking withdrawals from taxable than from tax-deferred accounts, you might want to give that some thought.

This may help your retirement assets with your company last longer as they continue to potentially grow tax deferred.

You will also need to plan to take the required minimum distributions (RMDs) from any company-sponsored retirement plans and traditional or rollover IRA accounts.

That is due to IRS requirements for 2024 to begin taking distributions from these types of accounts when you reach age 73. Beginning in 2024, the excise tax for every dollar of your RMD under-distributed is reduced from 50% to 25%.

There is new legislation that allows account owners to delay taking their first RMD until April 1 following the later of the calendar year they reach age 73 or, in a workplace retirement plan, retire.

Two flexible distribution options for your IRA

There are various options available to you when it comes to taking your required minimum distributions (RMDs) or making an income withdrawal from your IRA. Regardless of what you choose, IRA distributions are subject to income taxes and may be subject to penalties and other conditions if you’re under 59½.

Partial withdrawals: Withdraw any amount from your IRA at any time. If you’re 73 or over, you’ll have to take at least enough from one or more IRAs to meet your annual RMD.

Systematic withdrawal plans: Structure regular, automatic withdrawals from your IRA by choosing the amount and frequency to meet your income needs after retiring from your company. If you’re under 59½, you may be subject to a 10% early withdrawal penalty (unless your withdrawal plan meets Code Section 72(t) rules).

Your tax advisor can help you understand distribution options, determine RMD requirements, calculate RMDs, and set up a systematic withdrawal plan.

Your FedEx Benefits

Protect Your Health and Finances in Retirement

Health care poses significant costs in retirement. To protect your retirement savings and future pension income, learn about FedEx retiree health benefits and how you can prepare for a healthy future.

 

FedEx Retiree Health Benefits Eligibility

 

 

FedEx Corporation Retiree Health Reimbursement Arrangement (featuring the Retiree Health Premium Account (RHPA credit)

 

FedEx Corporation Retiree Group Health Plan

 

 

HSA's

Health Savings Accounts (HSAs) are often celebrated for their utility in managing healthcare expenses, particularly for those with high-deductible health plans. However, their benefits extend beyond medical cost management, positioning HSAs as a potentially superior retirement savings vehicle compared to traditional retirement plans like 401(k)s, especially after employer matching contributions are maxed out.

Understanding HSAs

HSAs are tax-advantaged accounts designed for individuals with high-deductible health insurance plans. For 2024, the IRS defines high-deductible plans as those with a minimum deductible of $1,600 for individuals and $3,200 for families. HSAs allow pre-tax contributions, tax-free growth of investments, and tax-free withdrawals for qualified medical expenses—making them a triple-tax-advantaged account.

The annual contribution limits for HSAs in 2024 are $4,150 for individuals and $8,300 for families, with an additional $1,000 allowed for those aged 55 and older. Unlike Flexible Spending Accounts (FSAs), HSA funds do not expire at the end of the year; they accumulate and can be carried over indefinitely.

Comparing HSAs to 401(k)s Post-Matching

Once an employer's maximum match in a 401(k) is reached, further contributions yield diminished immediate financial benefits. This is where HSAs can become a strategic complement. While 401(k)s offer tax-deferred growth and tax-deductible contributions, their withdrawals are taxable. HSAs, in contrast, provide tax-free withdrawals for medical expenses, which are a significant portion of retirement costs.

HSA as a Retirement Tool

Post age 65, the HSA flexes its muscles as a robust retirement tool. Funds can be withdrawn for any purpose, subject only to regular income tax if used for non-medical expenses. This flexibility is akin to that of traditional retirement accounts, but with the added advantage of tax-free withdrawals for medical costs—a significant benefit given the rising healthcare expenses in retirement.

Furthermore, HSAs do not have Required Minimum Distributions (RMDs), unlike 401(k)s and Traditional IRAs, offering more control over tax planning in retirement. This makes HSAs particularly advantageous for those who might not need to tap into their savings immediately at retirement or who want to minimize their taxable income.

Investment Strategy for HSAs

Initially, it's prudent to invest conservatively within an HSA, focusing on ensuring that there are sufficient liquid funds to cover near-term deductible and other out-of-pocket medical expenses. However, once a financial cushion is established, treating the HSA like a retirement account by investing in a diversified mix of stocks and bonds can significantly enhance the account's growth potential over the long term.

Utilizing HSAs in Retirement

In retirement, HSAs can cover a range of expenses:

• Healthcare Costs-Pre Medicare: HSA's Can pay for healthcare costs to bridge you to Medicare
• Healthcare Costs-Post Medicare: HSAs can pay for Medicare premiums and out-of-pocket medical costs, including dental and vision, which are often not covered by Medicare.
• Long-term Care: Funds can be used for qualified long-term care services and insurance premiums.
• Non-medical Expenses: After age 65, HSA funds can be used for non-medical expenses without incurring penalties, although these withdrawals are subject to income tax.

 

Conclusion

In summary, HSAs offer unique advantages that can make them a superior option for retirement savings, particularly after the benefits of 401(k) matching are maximized. Their flexibility in fund usage, coupled with tax advantages, makes HSAs an essential component of a comprehensive retirement strategy. By strategically managing contributions and withdrawals, individuals can maximize their financial health in retirement, keeping both their medical and financial well-being secure.

What Happens If Your Employment Ends

Unless your employment ends due to disability, your life insurance coverage and any optional coverage you purchase for your spouse, domestic partner, and/or children expire on the date of your employment. Your beneficiary will receive benefits for both your basic life insurance and any additional life insurance you may have chosen, provided you pass away within 31 days of the termination date.

Note:

• You may have the option to convert your life insurance to an individual policy or elect portability on any optional coverage.
• If you stop paying supplementary contributions, your coverage will end.
• If you are at least 65 and you pay for supplemental life insurance, you should receive information in the mail from the insurance company that explains your options.
• Make sure to update your beneficiaries. See the FedEx SPD for more details.

Beneficiary Designations

Specifying a beneficiary for the proceeds of your benefit programs in the event of your death is a crucial step in retirement and estate planning. That’s how FedEx will know whom to send your final compensation and benefits. This can include life insurance payouts and any pension or savings balances you may have.

Next Step:

• When you retire, make sure that you update your beneficiaries. FedEx has an Online Beneficiary Designation form for life events such as death, marriage, divorce, child birth, adoptions, etc.

If you are unsure about FedEx benefits, schedule a call to speak with one of our FedEx-focused advisors

Schedule a Call

Social Security & Medicare

Understanding Social Security and filing for benefits can be challenging for many retirees, but knowing the best ways to do so is crucial to budgeting for your retirement income. Social Security benefits should be a component of your overall withdrawal strategy rather than your exclusive source of retirement income.

Gaining an understanding of Social Security's fundamentals and utilizing them to your advantage will enable you to obtain the maximum benefit possible.

When you initially become eligible, it is your obligation to enroll in Medicare parts A and B. You must continue to be enrolled in order to receive coverage for costs that qualify for Medicare. This also holds true for your dependents who qualify for Medicare.

You should be aware of how your Medicare eligibility or retirement medical plan selections affect your available possibilities. Prior to leaving your job, visit ssa.gov, call your local Social Security office, or give the U.S. Social Security Administration a call at 800-772-1213.

They can help determine your eligibility, get you and/or your eligible dependents enrolled in Medicare or provide you with other government program information. For more in-depth information on Social Security, please call us.

Check the status of your Social Security benefits before you retire. Contact the U.S. Social Security Administration, your local Social Security office, or visit ssa.gov.

Are you eligible for Medicare, or will be soon?

If you or your dependents are eligible after you leave FedEx, Medicare generally becomes the primary coverage for you or any of your dependents as soon as they are eligible for Medicare. This will affect your company-provided medical benefits.

You and your Medicare-eligible dependents must enroll in Medicare Parts A and B when you first become eligible. Medical and MH/SA benefits payable under the FedEx-sponsored plan will be reduced by the amounts Medicare Parts A and B would have paid whether you actually enroll in them or not.

For details on coordination of benefits, refer to your summary plan description.

If you or your eligible dependent don’t enroll in Medicare Parts A and B, your provider can bill you for the amounts that are not paid by Medicare or your FedEx-specific medical plan … making your out-of-pocket expenses significantly higher.

According to the Employee Benefit Research Institute (EBRI), Medicare will only cover about 60% of an individual’s medical expenses. This means a 65-year-old couple, with average prescription-drug expenses for their age, will need $259,000 in savings to have a 90% chance of covering their healthcare expenses. A single male will need $124,000 and a single female, thanks to her longer life expectancy, will need $140,000.

Check your plan summary to see if you’re eligible to enroll in Medicare Parts A and B.

If you become Medicare-eligible for reasons other than age, you must contact the FedEx benefit center about your status. *Source: FedEx Summary Plan Description

Divorce

For 28% of couples over 50, the ideals of "happily ever after" and "til death do us part" will never come true. Assuming they would retire together, most couples have been saving money for decades together. They have to pay half (or even less) of their savings—the costs of living before or after retirement—after a divorce.

A portion of your retirement benefits may be of interest to your former spouse(s) if you are divorced or in the process of divorcing. You must give FedEx the following paperwork before you can begin receiving your pension, as well as for each former spouse who might be interested:

• A copy of the court-filed Judgment of Dissolution or Judgment of Divorce along with any Marital Settlement Agreement (MSA)
• A copy of the court-filed Qualified Domestic Relations Order (QDRO)

Provide FedEx with any requested documentation to avoid having your pension benefit delayed or suspended. To find out more information on strategies if divorce is affecting your retirement benefits, please give us a call.

You’ll need to submit this documentation to your company’s online pension center regardless of how old the divorce or how short the marriage. *Source: The Retirement Group, “Retirement Plans - Benefits and Savings,” U.S. Department of Labor, 2019; “Generating Income That Will Last Throughout Retirement,” Fidelity, 2019

Social Security and Divorce You can apply for a divorced spouse’s benefit if the following criteria are met:

• You’re at least 62 years of age.
• You were married for at least 10 years prior to the divorce.
• You are currently unmarried.
• Your ex-spouse is entitled to Social Security benefits.

The amount of your spousal benefit, which is half of your former spouse's full benefit amount if they were to claim it at full retirement age (FRA), is greater than your own Social Security benefit. Unlike with a married couple, your ex-spouse doesn’t have to have filed for Social Security before you can apply for your divorced spouse’s benefit, but this only applies if you’ve been divorced for at least two years and your ex is at least 62 years of age. If the divorce was less than two years ago, your ex must already be receiving benefits before you can file as a divorced spouse.

Unlike with a married couple, your ex-spouse doesn’t have to have filed for Social Security before you can apply for your divorced spouse’s benefit.

Divorce doesn’t even disqualify you from survivor benefits. You can claim a divorced spouse’s survivor benefit if the following are true:

• Your ex-spouse is deceased
• You are at least 60 years of age
• You were married for at least 10 years prior to the divorce
• You are single (or you remarried after age 60)

In the process of divorcing?

If your divorce isn’t final before your retirement date, you’re still considered married. You have two options:

• Retire before your divorce is final and elect a joint pension of at least 50% with your spouse — or get your spouse’s signed, notarized consent to a different election or lump sum.
• Delay your retirement until after your divorce is final and you can provide the required divorce documentation.*

Source: The Retirement Group, “Retirement Plans - Benefits and Savings,” U.S. Department of Labor, 2019; “Generating Income That Will Last Throughout Retirement,” Fidelity, 2019

Survivor Checklist

In the unfortunate event that you aren’t able to collect your benefits, your survivor will be responsible for taking action.

What your survivor needs to do:

• Report your death. Your spouse, a family member, or even a friend should call your company’s benefits service center as soon as possible to report your death.

• Collect life insurance benefits. Your spouse, or other named beneficiary, will need to call FedEx's benefits service center to collect life insurance benefits.

If you have a joint pension:

• Start the joint pension payments. The joint pension is not automatic. Your joint pensioner will need to complete and return the paperwork from FedEx's pension center to start receiving joint pension payments.

• Make sure you have enough money to pay for daily expenses. In order to ensure that your spouse receives their own pension payments at the beginning of the same month as you, they must be prepared with enough savings.

In the event that your survivor has FedEx medical coverage:

• Make the choice to maintain health insurance.

• Your survivor must choose whether to keep your FedEx-sponsored retiree medical coverage if they are enrolled as a dependent upon your passing. Survivors have to pay the full monthly premium.

Life After FedEx

Even though you might be tired and ready for a break from the demands and routine of your full-time job, it can make more sense for you financially and emotionally to carry on with your profession.

Benefits of working financially

Make up for assets' or savings' declining value. It's ideal for lump payments but more difficult to generate portfolio income due to low interest rates. Some people keep working in an attempt to offset the underwhelming returns on their investments and savings.

Perhaps you accepted a job offer from the company and left earlier than you had intended, leaving you with less money saved for retirement. You can choose to work a little bit longer to pay for things you've always denied yourself in the past rather than taking money out of savings.

Fulfill daily life expenses financially. Retirement might bring with it more expenses, so working can be a sensible and practical solution. Many workplaces offer free or inexpensive health insurance to part-time workers, so you may decide to stay working in order to maintain your insurance or other benefits.

Benefits of employment on an emotional level

When you believed you would be leaving the employment, you may find yourself having quite alluring career alternatives.

continuing to be involved and active. Maintaining a job—even a part-time one—can be a terrific opportunity to put the talents you've worked so hard to develop over the years to use and stay in touch with friends and coworkers.

having fun while working. You are under no obligation to arrange your life around the retirement age that the government has established for you through the Social Security program. Since their jobs improve their lives, many people who actually enjoy their work stay employed.

Live webinars led by seasoned financial consultants may be of interest to Fedex employees who are considering their retirement. To sign up for our upcoming webinars for Fedex employees, call us at 800-900-5867.

Sources