There are just a couple of things almost all Graphic Packaging Holding retirees need when they hit retirement: predictable income and protection against a cluster of risks, which include longevity risk, performance risk and sequence-of-returns risk.
In the past we have seen retiring Graphic Packaging Holding employees utilize the “4% rule,” where retirees take annual withdrawals start at 4% of the entire portfolio and increase with inflation. They then keep the remainder of the portfolio with at least 50% invested in equities. Based on historical data, this would give a Graphic Packaging Holding retiree about 30 years of retirement income.
As the economy constantly changes, a number of factors may force prospective Graphic Packaging Holding retirees to revisit the 4% rule. It may be worth considering annuities as an alternative.
As life expectancies increase, Graphic Packaging Holding retirees need to prepare for expenses over a longer time frame. In the past we would plan for a 15 to 20 year retirement, but now we need to prepare for a 30 to 35 year retirement. What is available to assist meeting the 35-year time frame?
The annuity strategy can assist with a few of the pitfalls we see in the 4% rule. For example:
If you need $50,000 per year in retirement and need that for 30 years, you may need $1.2 million in fixed income at a 3% interest rate. BUT if you look to fund $50,000 for 30 years, you can cover that expense with $800,000 by choosing the annuity option.
The other pitfall with the 4% rule is that it may not reflect a client’s risk tolerance. When you are accumulating assets, you can afford more volatility and can take on more risk than when in the retirement and withdrawal phase after leaving Graphic Packaging Holding.
Also, should we see a drop in the market, you would be able to reduce your income using the 4% rule, which you cannot do if you choose an annuity option.
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What type of retirement savings plan does Graphic Packaging Holding offer to its employees?
Graphic Packaging Holding offers a 401(k) retirement savings plan to its employees.
Does Graphic Packaging Holding provide a company match for contributions to the 401(k) plan?
Yes, Graphic Packaging Holding offers a company match for employee contributions to the 401(k) plan, subject to specific terms and conditions.
At what age can employees of Graphic Packaging Holding start participating in the 401(k) plan?
Employees of Graphic Packaging Holding can typically start participating in the 401(k) plan after they reach the age of 21.
How can employees of Graphic Packaging Holding enroll in the 401(k) plan?
Employees of Graphic Packaging Holding can enroll in the 401(k) plan through the companys HR portal or by contacting the HR department for assistance.
What is the maximum employee contribution limit for the 401(k) plan at Graphic Packaging Holding?
The maximum employee contribution limit for the 401(k) plan at Graphic Packaging Holding is set by the IRS and may change annually; employees should check the latest guidelines.
Does Graphic Packaging Holding allow employees to take loans against their 401(k) savings?
Yes, Graphic Packaging Holding allows employees to take loans against their 401(k) savings, subject to specific plan rules.
Can employees of Graphic Packaging Holding change their contribution percentage to the 401(k) plan?
Yes, employees of Graphic Packaging Holding can change their contribution percentage at any time, following the plans guidelines.
What investment options are available in the Graphic Packaging Holding 401(k) plan?
The Graphic Packaging Holding 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, among others.
Is there a vesting schedule for the company match in the 401(k) plan at Graphic Packaging Holding?
Yes, Graphic Packaging Holding has a vesting schedule for the company match, which determines when employees fully own the matched contributions.
How can employees of Graphic Packaging Holding access their 401(k) account information?
Employees of Graphic Packaging Holding can access their 401(k) account information online through the plans designated website or mobile app.
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