Blue Cross Blue Shield Employees: 11 Questions You Should Ask Yourself When Planning for Retirement

Introduction

From working with a large amount of Blue Cross Blue Shield clients, we have developed a good understanding as to what it takes for a Blue Cross Blue Shield employee or retiree to achieve a successful retirement. Below are some questions to ask yourself that we feel are important in building towards a successful retirement.

When Do You Want to Retire?

If you are married, when will your spouse retire?

When will you start receiving Social Security benefits?

Where Will You Live?

Will you have one home or multiple? Downsizing or upsizing?
Consider housing cost based on type (house, condo, retirement community)
Family & social network considerations
State income, real estate & estate tax implications

How Will You Spend Your Time in Retirement?

Make a bucket list
Volunteering opportunities?
2nd career or part-time work?
Business interests
Hobbies & travel
Estimate costs and resources
Be sure to prioritize

Do You Want to Leave a Financial Legacy to Your Family or a Charity?

Are there loved ones you need to take care of financially?
Are there charities you are passionate about?
Do you have a will and/or trust in place?

What Will You Do to Stay Healthy?

Exercise plan
Socialize
Prioritize mental health
Longevity expectations
Do you have health care directives in place?

What Will Be Your Sources of Retirement Income?

Will you continue to work?
Do you expect an inheritance?
Itemize your income-generating assets
How will you draw down your investment assets?
When will you start collecting Social Security?

What Expenses Will You Need to Cover in Retirement?

Are there items you expect will cost more than your current expense level?
Are there costs you will eliminate in retirement?
Evaluate post-retirement insurance needs
Are there any celebrations you want to finance?
What will your transportation needs be in retirement?
Do you have funds to cover an emergency?
Have you paid off any debt or have a plan to pay it off?
Will you have a mortgage to pay?
The average amount of savings required to retire comfortably in the United States is $904,452 [6]

Do You Own a Business?

Will you stay involved?
What’s your transition plan?
Will you sell your company to fund your retirement?
Business income? Business sale proceeds?
Appraise the future value of your business

How Will You Cover Medical Expenses?

Will you purchase a Medigap or Medicare Advantage plan?
What’s your plan for financing long-term care?
The average retiree should save about $295,000 to cover medical expenses in retirement [7]

Have You Considered Tax Strategies To Improve Retirement Cash Flow?

Compare state tax rates
Roth conversion strategies
Tax efficient charitable giving
Planned gifts to family
Asset location of investments

Do You Have a Relative or Friend That You Trust to Provide Financial or Health Advice?

Who can you talk to about medical issues?
Who do you trust with financial decisions?
Have you established medical and property POAs?

About The Retirement Group

The Retirement Group is a nation-wide group of financial advisors who work together as a team.

We focus entirely on retirement planning and the design of retirement portfolios for transitioning corporate employees. Each representative of the group has been hand selected by The Retirement Group in select cities of the United States. Each advisor was selected based on their pension expertise, experience in financial planning, and portfolio construction knowledge.

TRG takes a teamwork approach in providing the best possible solutions for our clients’ concerns. The Team has a conservative investment philosophy and diversifies client portfolios with laddered bonds, CDs, mutual funds, ETFs, Annuities, Stocks and other investments to help achieve their goals. The team addresses Retirement, Pension, Tax, Asset Allocation, Estate, and Elder Care issues. This document utilizes various research tools and techniques. A variety of assumptions and judgmental elements are inevitably inherent in any attempt to estimate future results and, consequently, such results should be viewed as tentative estimations. Changes in the law, investment climate, interest rates, and personal circumstances will have profound effects on both the accuracy of our estimations and the suitability of our recommendations. The need for ongoing sensitivity to change and for constant re-examination and alteration of the plan is thus apparent.

Therefore, we encourage you to have your plan updated a few months before your potential retirement date as well as an annual review. It should be emphasized that neither The Retirement Group, LLC nor any of its employees can engage in the practice of law or accounting and that nothing in this document should be taken as an effort to do so. We look forward to working with tax and/or legal professionals you may select to discuss the relevant ramifications of our recommendations.

Throughout your retirement years we will continue to update you on issues affecting your retirement through our complimentary and proprietary newsletters, workshops and regular updates. You may always reach us at (800) 900-5867.

Sources

What to do with an Early Retirement Ebook
Social Security Ebook
Lump Sum vs. Annuity Ebook
401(k) Rollover Strategies Ebook
Closing the Retirement Gap Ebook
Average Retirement Income By State.' World Population Review, 2021
Powell, Robert. 'How to pay for healthcare costs in retirement.' MarketWatch, April 10, 2021

What type of retirement savings plan does Blue Cross Blue Shield offer to its employees?

Blue Cross Blue Shield offers a 401(k) retirement savings plan to help employees save for their future.

How can employees of Blue Cross Blue Shield enroll in the 401(k) plan?

Employees can enroll in the Blue Cross Blue Shield 401(k) plan by completing the enrollment process through the company’s HR portal.

Does Blue Cross Blue Shield provide any matching contributions to the 401(k) plan?

Yes, Blue Cross Blue Shield offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the eligibility requirement for employees to participate in Blue Cross Blue Shield's 401(k) plan?

Employees are typically eligible to participate in Blue Cross Blue Shield's 401(k) plan after completing a specified period of service, as outlined in the plan documents.

Can employees of Blue Cross Blue Shield change their contribution percentage to the 401(k) plan?

Yes, employees can change their contribution percentage to the Blue Cross Blue Shield 401(k) plan at any time, subject to the plan's guidelines.

What investment options are available in Blue Cross Blue Shield's 401(k) plan?

Blue Cross Blue Shield offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.

Is there a vesting schedule for the employer match in Blue Cross Blue Shield's 401(k) plan?

Yes, Blue Cross Blue Shield has a vesting schedule for employer matching contributions, which determines when employees gain full ownership of those funds.

How can employees access their 401(k) account information at Blue Cross Blue Shield?

Employees can access their 401(k) account information through the online portal provided by Blue Cross Blue Shield’s retirement plan administrator.

Are there any fees associated with Blue Cross Blue Shield's 401(k) plan?

Yes, there may be administrative fees associated with the Blue Cross Blue Shield 401(k) plan, which are disclosed in the plan documents.

What happens to an employee's 401(k) balance if they leave Blue Cross Blue Shield?

If an employee leaves Blue Cross Blue Shield, they have several options for their 401(k) balance, including rolling it over to another retirement account or leaving it in the Blue Cross Blue Shield plan if permitted.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Blue Cross Blue Shield offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan features company matching contributions and various investment options, including target-date funds and mutual funds. Blue Cross Blue Shield provides financial planning resources and tools to help employees manage their retirement savings.

Blue Cross Blue Shield companies have announced several rounds of layoffs in 2023-2024. Blue Cross Blue Shield of Michigan laid off 80 employees and offered voluntary separation packages to reduce workforce costs. Blue Cross Blue Shield of Minnesota also laid off 80 employees as part of its ongoing restructuring efforts to better align with strategic goals. These layoffs come amid financial challenges, including increased medical and pharmacy claims costs. Despite these issues, Blue Cross Blue Shield companies continue to focus on stabilizing their financial performance and enhancing operational efficiency.

Blue Cross Blue Shield provides RSUs to employees, which vest over time and convert into shares. Stock options are also available, allowing employees to purchase shares at a set price.

Blue Cross Blue Shield (BCBS) has consistently updated its healthcare benefits to ensure comprehensive coverage and support for its members. In 2023, BCBS introduced several key updates, including enhanced preventive care services and wellness incentives. Members can earn a $150 MyBlue Wellness Card for completing their annual physical, which can be used for qualified medical expenses. Additionally, BCBS increased the number of free. For 2024, BCBS has further enhanced its offerings with new wellness incentives and expanded coverage options. Members can earn up to $150 in Healthy Rewards by completing activities such as health assessments and lifestyle programs. The plans also include comprehensive coverage for preventive care, maternity services, and chronic condition management. With $0 copays for many telehealth services and competitive rates, BCBS remains committed to supporting the health and financial security of its members, which is particularly crucial given the current economic and political landscape.