Preparing for Retirement

Preparing for retirement doesn’t just happen. It takes planning—and the sooner you start, the more time your retirement savings has to grow!

 

Saving for Retirement

The first step in a financially secure retirement is knowing your retirement needs. The cost of retirement is getting more expensive: we are living longer and we are more active. Social Security benefits—which replace about 40% of your income—are unlikely to cover all of your retirement needs.

University of Arkansas Retirement Plan

As a university employee, you contribute to the 403(b)/457(b) University of Arkansas Retirement Savings Plan. In addition to the required employee contribution, you can elect additional voluntary contributions on a pre-tax or after-tax (Roth) basis. The university will match your contribution, dollar for dollar, up to 10% per pay period on the first $350,000 (in 2025) of compensation in the tax year.

The closer you are to retirement, the more important additional voluntary contributions will be to getting you to your financial goals. At age 50, you can begin making catch-up contributions to get to your goal faster.

Want More Help?

Fidelity has a detailed retirement checklist with links to helpful articles and resources. TIAA’s Retirement & beyond resource provides helpful tools and articles.

Retiree Coverage

Before you retire, it’s important to know what your options are for retiree medical coverage. If you retire before age 65, you’ll need to consider what you’ll do for health coverage until you are eligible for Medicare.

Medicare 101

Medicare is a federal health insurance program managed by the Centers for Medicare & Medicaid Services (CMS). You are eligible for Medicare once you have reached age 65 (or younger, if you have a disability).

Medicare covers:

  • Medicare Part A (hospital insurance): inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care.
  • Medicare Part B (medical insurance): doctor’s services, outpatient care, medical supplies, and preventive care.
  • Medicare Part D: prescription drugs (prescription drug coverage is not included in every Medicare plan, but it’s included in the University of Arkansas UnitedHealthcare Medicare Advantage Plan).

University-Sponsored Retiree Coverage

You may be eligible to continue coverage under certain university health plans when you retire.

  • Medical
     
    • Not Medicare-eligible: You can continue active employee coverage under the Classic Plan ONLY.
    • Medicare-eligible: You can enroll in the UnitedHealthcare Medicare Advantage Plan.
  • Dental

Ready to Retire?

Call the Medicare Advantage pre-enrollment team at 800-533-2743 (TTY 711), available 8 a.m. – 8 p.m. local time, seven days a week. Representatives are available to answer questions regarding the university’s plan or Medicare.

Vision benefits are not offered through the university. However, when you retire, you can enroll in a vision plan through EyeMed at a discounted group rate.

Countdown-to-Retirement Checklist

This checklist provides an overview of the important decisions you’ll need to make to be retirement-ready.

2–5 Years from Retirement
  • Speak with a financial advisor. Create a retirement budget and a plan to set up an income stream to make your savings last. You can schedule a one-on-one appointment with Fidelity and TIAA at no additional cost.
  • Check for former employer retirement accounts and decide if and where to roll the balances. If an old employer is out of business, you can search for remaining plan assets by visiting the Pension Benefit Guaranty Corporation and the Employee Benefits Security Administration.
  • Pay off 403(b) loans. If you would like to repay your 403(b) loan, contact Fidelity or TIAA to discuss options.
  • Use group legal plan attorneys for help with estate planning services, selling or buying a home, tax services, and other major financial transactions. Enroll in LegalShield anytime throughout the year.

1 Year from Retirement
  • Check in with your financial advisor to make sure you’re still on track to retire as planned. Review your health care coverage and other insurance options.
  • Plan when to start Social Security. The amount of your monthly Social Security benefit increases the longer you wait after your full retirement age, up to age 70.
  • Practice living on your retirement income while you’re still working. You’ll get a feel for the lifestyle you’ll have on your retirement budget, and you can keep the rest of your pay in the bank.
  • Start the retirement process with the university. As appropriate, discuss your plans with your manager, and work together on a transition plan for your responsibilities.

When You Retire
  • Review your final paycheck. Generally, it will include:
    • Pay through your last day worked
    • A payout for any remaining vacation time balance
  • If you’re moving, ensure the university has your post-retirement address, so you can receive your W-2 and other important correspondence. Be sure to update your address with Fidelity or TIAA.
  • Look into moving your HSA balance. Once you’re no longer a university employee, Optum Bank will begin charging you service fees for your HSA. You may be able to roll over your HSA balance to another provider with lower fees.
  • Enroll in retiree health coverage. The university offers retiree benefits for non-Medicare and Medicare-eligible retirees, if you meet certain eligibility requirements.

Resources

Whether you just started saving or you’re getting ready to retire, take advantage of the tools and resources available to you.

Fidelity
800-343-0860

TIAA
800-842-2252

U.S. Centers for Medicare & Medicaid Services
800.MEDICARE (800-633-4227) 
TTY: 877-486-2048

The Official U.S. Government Site for Medicare
800.MEDICARE (800-633-4227) 
TTY: 877-486-2048

U.S. Department of Health and Human Services 
877-696-6775

U.S. Department of Labor, Employee Benefits Security Administration 
866-444-3272 
TTY: 202-501-3911

U.S. Social Security Administration 
800-772-1213 
TTY: 800-325-0778