How to Retire

• When do you want to retire?
  Think about at what age you would like to retire. This will affect how much you should contribute to your Savings Plan and what type of investments you should make.
• How much will you need to save?
  Think about how much money you will need when you retire. On average, you’ll need 70 – 80 percent of your pre-retirement income each year to live comfortably. Keep in mind that even though you are contributing to Social Security now, the age at which you are eligible to receive those benefits may rise, and the Social Security benefit may decrease. Also, with the changing economy and rising inflation, the cost of living is increasing as your purchasing power is decreasing.
• What are you currently saving?
  Take a moment to assess how much you are contributing to your Savings Plan, where your contributions are currently invested and how much you have saved. This will help you decide if you need to make any changes.
• Are you getting the full company match?
  The company will match every $1 you contribute with $1.33, up to 6 percent of your eligible pay. Take advantage of this opportunity and make sure you are not leaving any money on the table.
• When do you want to pay taxes on your Savings Plan contributions?
  There’s no way to avoid paying taxes on retirement income, but you have a choice about when you pay taxes — now or later. You can contribute before-tax dollars to get a tax break now or after-tax dollars to avoid paying taxes in retirement.
• What kind of investor are you?
  Your allocation strategy should align with what type of investor you are: conservative, moderate, growth or aggressive growth. Take the quiz on page 6 of the Hess Savings Plan Investment Guide to see what your risk tolerance is and what type of investments may be best for you.
• Where do you want to be?
  When it comes to investing, do you want to be in the driver’s seat or cruising in the passenger’s seat? You have the option of letting someone else take the steering wheel to manage your funds, or you can take control and actively manage your funds yourself. See the Choose Your Seat section on page 16 of the Hess Savings Plan Investment Guide for help deciding which strategy is best for you and your investment needs.

You’ve worked hard and made a significant contribution to making Hess a special company. And now you’re thinking about retiring. Hess provides the information, tools and resources to help you make a smooth transition to retirement when you’re ready. Here’s a quick look at the eight steps to retirement.

1. Start Planning
   You’ll want to start planning at least six months in advance of the day you wish to retire.
2. Share Your Plan
   At least three months before your retirement date, share your plan with your manager, your HR representative and the Hess Benefits Center.
3. Request Your Benefit Commencement Package
   You’ll need to complete some paperwork to start the retirement process.
4. Continue Your Medical Coverage
   Understand your options for medical and dental coverage in retirement.
5. Consider Applying for Social Security
   You can begin receiving your full Social Security benefits at age 65, 66 or 67, or opt for a reduced benefit as early as age 62.
6. Sign Up for Medicare
   You may want to sign up to receive Medicare beginning at age 65.
7. Understand How Your Benefits Change
   Be sure you get the full picture well in advance.
8. Decide When to Receive Your Savings Plan Balance
   You can request a lump-sum payment from your Savings Plan account right away, move your money to another account or leave it in the account until age 70½ (when minimum distributions must begin).

For more information, review Making the Transition to Retirement.