There are just a couple of things almost all Viasat 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 Viasat 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 Viasat retiree about 30 years of retirement income.
As the economy constantly changes, a number of factors may force prospective Viasat retirees to revisit the 4% rule. It may be worth considering annuities as an alternative.
As life expectancies increase, Viasat 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 Viasat.
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 is the Viasat 401(k) Savings Plan?
The Viasat 401(k) Savings Plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or Roth (after-tax) basis.
How can I enroll in the Viasat 401(k) Savings Plan?
You can enroll in the Viasat 401(k) Savings Plan by accessing the employee benefits portal or contacting the HR department for guidance on the enrollment process.
What is the employer match for the Viasat 401(k) Savings Plan?
Viasat offers a competitive employer match for contributions made to the 401(k) Savings Plan, which helps employees maximize their retirement savings.
When can I start contributing to the Viasat 401(k) Savings Plan?
Employees at Viasat can start contributing to the 401(k) Savings Plan after completing their eligibility requirements, typically within the first few months of employment.
What are the contribution limits for the Viasat 401(k) Savings Plan?
The contribution limits for the Viasat 401(k) Savings Plan are set by the IRS and can change annually. Employees should check the latest guidelines to ensure they are within the limits.
Can I make changes to my contributions in the Viasat 401(k) Savings Plan?
Yes, Viasat allows employees to adjust their contribution amounts to the 401(k) Savings Plan at any time throughout the year.
What investment options are available in the Viasat 401(k) Savings Plan?
The Viasat 401(k) Savings Plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance and retirement goals.
Does Viasat offer financial education resources for 401(k) participants?
Yes, Viasat provides financial education resources and tools to help employees make informed decisions about their 401(k) Savings Plan investments.
How can I access my Viasat 401(k) account information?
Employees can access their Viasat 401(k) account information through the employee benefits portal or by contacting the plan administrator directly.
What happens to my Viasat 401(k) Savings Plan if I leave the company?
If you leave Viasat, you have several options for your 401(k) Savings Plan, including rolling it over to an IRA or a new employer's plan, cashing it out, or leaving it in the Viasat plan if eligible.
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