The Boeing Company offers a variety of retirement options for its employees. Some opportunities offer a monthly pension, while others provide a lump sum payout.
The lump-sum option is a great way to receive due funds from the Boeing Company in one payment. However, it is also susceptible to interest rate risk.
Getting Started
If you are a Boeing employee or have a family member, you know that your healthcare costs will be one of the most significant expenses in your Boeing retirement plan. It is why it’s essential to get your financial planning on track.
Employees of the Boeing Company can receive a pension in the form of monthly payments or a lump sum. The monthly allowance is typically calculated based on your years of employment with Boeing and your average pay during that time.
The lump-sum payout, on the other hand, is actuarial and depends on interest rates. Each year, Boeing resets the underlying interest rates to calculate how much the lump-sum benefit will be.
Medicare
Medicare is a federal program that provides health insurance to people 65 or older. Its benefits are funded mainly by payroll taxes, general revenues, and premiums paid by beneficiaries.
While Medicare is an excellent place to start when planning for healthcare costs, it’s also essential to understand your health coverage options, both company- and non-company-sponsored. Talking with your financial advisor and CPA about your options can help you choose the right strategy for you and your family.
One of Boeing employees’ most common choices is a lump sum payout instead of a lifetime stream of monthly checks. About half of the retirees have recently chosen the lump sum option.
However, a looming pension adjustment will dramatically cut the amount of that lump sum for Boeing engineers who retire this fall, making a choice even more difficult. A 35-year engineer who previously chose a lump sum calculates that his payment will be cut by more than $200,000 if he retires in December.
Supplemental Insurance
Many rely on supplemental insurance policies to protect their finances and provide peace of mind during illness or injury. These additional health care plans are designed to complement primary insurance and mitigate or eliminate deductibles, copays, and other out-of-pocket costs that traditional medical insurance does not cover.
This supplemental coverage is often called hospital indemnity insurance. It helps pay for medical expenses incurred during hospital stays, typically for up to one year after discharge from the hospital.
Supplemental health insurance is designed to help offset out-of-pocket medical costs, especially in the current era of rising healthcare costs and the increased popularity of high-deductible health plans.
These supplemental policies can help retirees and their families avoid the financial stress of unexpected medical bills and costs while providing valuable benefits whether you plan to retire from Boeing or are already retired.
Long-Term Care
The cost of long-term care — in nursing homes, assisted living facilities, and home health care — is growing fast, and most Americans will need this type of assistance at some point. It can drain a person’s savings account and impact their ability to retire comfortably.
Planning for long-term care costs can help. Many states have “partnership” programs incentivizing individuals to purchase long-term care insurance.
Creating a long-term care plan is an essential part of the retirement planning process. It can help you prepare for the possibility of needing long-term care while also protecting your savings.
An excellent way to start is to evaluate your current health and a family history of severe illness or disease. These factors can help you predict how likely you are to need long-term care in the future.
