Are You Ready to Retire From Intel in 2025?
After investing years in your career at Intel, retirement is an exciting prospect. But how can you know when it’s time to take the leap?
Your Intel Retirement Benefits
Intel's retirement benefits are some of the most generous in the tech industry. However, they’re also quite complex. Understanding the details of your benefits in 2025 will help you determine if this is the right year to retire.
Intel 401(k) Savings Plan
Intel's 401(k) Savings Plan is the main retirement savings tool for all Intel employees. This plan has several features that make it especially valuable for building wealth.
Employer match: In 2025, Intel matches all employee contributions to the 401(k) dollar-for-dollar up to 5% of eligible pay.
Immediate vesting: Unlike many companies that make employees wait years before they own their 401(k) accounts, Intel has immediate 100% vesting for all funds. This means you don't have to worry about losing any of your savings when parting ways with Intel.
Investment flexibility: Intel’s 401(k) offers a wide range of investment options through Fidelity, including low-cost index funds, target-date funds, and actively managed funds. This flexibility gives you control over how you grow your savings over time.
Mega backdoor Roth: Intel lets employees make after-tax contributions beyond the standard 401(k) limits through the mega backdoor Roth program. Using this program, high-earning employees can save and invest even more for retirement.
By making the most of these great features, you can set aside a healthy nest egg for retirement.
Legacy Pension for Pre-2011 Hires
If you were hired at Intel before January 1, 2011, you may have access to additional retirement benefits that were closed to new hires.
Retirement Contribution Account (RCA): Before 2011, the RCA was a major part of Intel’s retirement benefits. Every year, Intel made contributions to eligible employees' RCAs, typically as a percentage of eligible pay. These contributions then grew through strategic investments. Upon retiring, the balance would become available as a lump sum or periodic payments.
Minimum Pension Plan (MPP): Before 2011, the MPP worked in tandem with the RCA, serving as a safety net for eligible employees. If your RCA didn’t perform as expected, the MPP would kick in as an alternative, guaranteeing a minimum level of retirement income. Essentially, Intel would compare the MPP to your RCA balance, and whichever was larger would become your pension.
For employees hired from 2011 onward, the RCA and MPP are no longer a factor in your Intel retirement benefits. If you were hired before 2011, you may have frozen funds still in place from before these pension options were phased out and replaced by the 401(k).
Intel Retiree Medical Plan and SERMA
If you meet Intel's retirement eligibility requirements, you'll have access to continued health coverage through the Intel Retiree Medical Plan (IRMP). This benefit helps bridge the gap between your employer-sponsored health insurance and Medicare eligibility.
Medical and vision coverage: The IRMP offers different plan options depending on whether you're Medicare-eligible or not. You'll have access to medical coverage through Anthem and vision coverage through VSP.
SERMA credits: If you were hired before January 1, 2014, and meet retirement eligibility, Intel will establish a Sheltered Employee Retirement Medical Account (SERMA) for you. This account provides $1,500 in credits for each full year of service, which you can use to pay for IRMP premiums or reimburse other eligible healthcare expenses. For long-tenured employees, SERMA can represent a substantial healthcare fund.
Catastrophic Rx coverage: Medicare-eligible retirees enrolled in a Medicare Part D plan also get access to Intel's Catastrophic Rx Health Reimbursement Account for additional prescription drug cost protection.
Stock Compensation
Intel pays employees in part through restricted stock units (RSUs) and stock options.
RSUs are shares of Intel stock that vest over time according to a schedule (typically 25% per year over four years).
Stock options give you the right to buy Intel shares at a set price for a certain period.
These equity awards can represent a substantial portion of your total compensation, especially for higher-level employees. So what happens to these stocks when you leave Intel?
Retirement age: If you're age 65 or older, or if you meet the rule of 75 (age plus years of service equals 75 or more), you get favorable treatment on your equity awards. This includes accelerated vesting on unvested RSUs and stock options, plus up to one year to exercise vested options instead of the usual 90-day window.
Early retirement: If you don't meet retirement requirements, you'll face the standard separation rules. This means unvested RSUs and options are generally forfeited when you leave Intel. (Though there are still options for early retirement from Intel.)
The difference between these two scenarios can be worth tens of thousands of dollars, so you’ll want to factor those requirements in when deciding whether it’s time to retire.
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Determining Your Retirement Readiness
Now that you understand your Intel benefits, it's time to figure out if you're actually ready to retire. This means looking at both your financial situation and your personal readiness.
1. Calculate Your Retirement Income Needs
The first step is figuring out how much money you'll actually need each month in retirement. To make an estimate, start by looking at your current expenses. How much do you need right now? Then, factor in how those expenses are likely to change after retiring. For example, some expenses will likely decrease, such as:
Commuting costs
Retirement contributions
Mortgage payments (if you plan to pay your home off)
On the other hand, other expenses may go up. This often includes:
Healthcare costs
Travel expenses
Hobbies
Long-term care needs
PRO TIP: Don't forget about inflation. Even at a modest 3% annual rate, your expenses will nearly double over 20 years. So if you need $5,000 per month today, you might need $9,000 per month in 20 years to maintain the same lifestyle.
2. List Your Assets
Next, add up everything you'll have available for retirement, such as:
Intel benefits: Your 401(k) balance, any MPP or RCA benefits, SERMA credits, and vested equity compensation
Social Security: Get an estimate from ssa.gov to see what you can expect based on your earnings history
Personal savings: Traditional and Roth IRAs, taxable investment accounts, real estate equity, and any other assets
Other income: Rental properties, part-time work, or consulting income you plan to continue in retirement
How much do you have right now, and how much can you expect in retirement?
3. Apply the Retirement Readiness Tests
There are a few quick tests you can use to see if you're on track with your savings.
The 10x rule: Under this standard, your total retirement savings should be at least 10 times your final year's salary. If you earn $100,000, you should have at least $1 million saved.
The 4% rule: You should be able to withdraw 4% of your savings annually and still have your money last 30 years. If you have $1 million saved, you could withdraw $40,000 per year using this rule.
Income replacement: Your retirement income from all sources should replace 70%–90% of your working income, depending on your lifestyle and debt situation.
These are rules of thumb, not hard requirements. Your situation might be different based on your health, family situation, and retirement goals. A fiduciary financial advisor can help you determine how much you will need to fund your ideal retirement lifestyle.
4. Consider Your Timing
When you can access your money without penalties matters a lot for your retirement planning. Under the normal rules, you can withdraw from your 401(k) penalty-free once you turn 59½. Even if you leave early, you can still access your 401(k) funds as long as you retire at age 55 or later. (This is known as the rule of 55.)
Once you turn 62, you can start taking Social Security payments. However, the benefits will be reduced until you reach full retirement age (typically 66–67). Delaying your benefits until age 70 will increase your payments even more.
Factoring these age requirements into your retirement decision could have a major impact on how much income you’ll have on hand.
5. Work with a Fiduciary Financial Advisor
Intel's benefits are complex, and retirement planning involves a lot of moving parts. A financial advisor who understands Intel’s benefits can help you by:
Model different retirement scenarios based on your specific situation
Optimize your Social Security claiming strategy
Plan tax-efficient withdrawals from different accounts
Make sure all the pieces of your retirement plan work together
Consider working with a fee-only fiduciary financial advisor. Fiduciary advisors are legally obligated to prioritize your best interests and disclose any conflicts they may have. And when your advisor works on a fee rather than charging commissions, their advice won’t be influenced by any products they're trying to sell you.
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Preparing for Retirement
If you're not quite ready to retire yet, here are the most effective ways to get there faster.
Maximize Your 401(k) Contributions
This is the foundation of any solid retirement plan. For 2025, you can contribute:
Up to $23,500 if you're under 50
Up to $31,000 if you're 50–59
Up to $34,750 if you're 60–63
At the very least, make sure you're contributing at least 5% to get Intel's full match.
Use the Mega Backdoor Roth Strategy
If you're already maxing out your regular 401(k) contributions and have extra money to save, the mega backdoor Roth can be a powerful wealth-building tool. Here's how it works:
Make after-tax contributions to your 401(k) beyond the normal $23,500 limit
Immediately convert those contributions to Roth (either within your 401(k) or by rolling to a Roth IRA)
Your money grows tax-free from that point forward
Depending on your salary and Intel's match, you might be able to add tens of thousands of dollars per year using this strategy. That's a lot of extra retirement savings that will grow tax-free for decades.
Optimize Your Investment Strategy
How you invest your retirement money matters just as much as how much you save. Here are some key principles:
Keep costs low: Choose index funds and low-expense-ratio funds when possible. High fees can eat away at your returns over time.
Stay diversified: Don't put all your money in one type of investment. Spread it across different asset classes and geographic regions.
Match your risk to your timeline: Generally, you can take more investment risk when you're younger and should become more conservative as you approach retirement.
Rebalance regularly: Check your allocation once or twice a year and rebalance to stay on track with your target mix.
Handle Your Stock Compensation Strategically
Intel employees often accumulate significant wealth in company stock through RSUs and stock options. Here's how to handle it smartly:
Don't concentrate too much in Intel stock: While it might be tempting to hold onto shares of your employer, it's risky to have too much of your wealth tied up in one company. Consider selling some shares regularly to diversify.
Use tax-loss harvesting: If you have losses in other investments, you can use them to offset gains from selling Intel stock, reducing your tax bill.
Time your retirement carefully: If you're close to meeting retirement eligibility requirements, think carefully about timing. The accelerated vesting could be worth a lot of money.
Plan for Healthcare Costs
Healthcare is often retirees' biggest and most unpredictable expense. Here's how to prepare:
Understand your SERMA benefits: If you're eligible for SERMA, calculate how much you'll have available and understand how to use it most effectively.
Consider a Health Savings Account: If you're in a high-deductible health plan, max out your HSA contributions. HSAs have triple tax benefits: deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses.
Research Medicare: Start understanding your Medicare options well before you turn 65. Medicare doesn't cover everything, and you'll likely need supplemental insurance.
Think about long-term care: Consider whether you want long-term care insurance or plan to self-insure for potential care needs later in life.
Are You Ready to Retire?
After working through this analysis, you should have a clearer picture of whether you're ready to retire from Intel. Ask yourself these questions:
Can you maintain your desired lifestyle? Your projected retirement income will cover 70–85% of your current expenses, with room for the activities you want to pursue.
Do you have adequate healthcare coverage? You understand your healthcare options and have planned for medical costs, including potential long-term care needs.
Are you maximizing Intel's benefits? You've timed your retirement to get the most value from pension benefits, stock awards, SERMA credits, and other Intel-specific benefits.
Will your money last? Based on reasonable assumptions about investment returns and spending, your savings can support you for decades to come.
Do you have a tax-efficient withdrawal strategy? You know how to access money from different account types in a way that minimizes your tax bill.
Are you emotionally ready? You've thought about how you'll spend your time, maintain social connections, and find purpose and fulfillment in retirement.
If you can confidently answer “yes” to these questions, then you may well be ready to retire. Just remember: Retirement planning isn't a one-and-done decision. Your situation, market conditions, and personal goals can all change over time, so it's smart to revisit your plan every few years or after major life changes.
Get Help from a Trusted Financial Advisor
Retirement planning can feel overwhelming, but you don't have to figure it out alone. At TrueWealth Financial Partners, we specialize in helping you transition into retirement with a personalized plan that works for you.
As a fee-only financial advisory firm, we don't sell products or earn commissions. We provide objective guidance tailored to your unique situation. We understand Intel's retirement benefits inside and out and can help you evaluate every aspect of your benefits package while creating sustainable retirement income strategies.
Whether you're still years away from retirement or ready to make the transition soon, we can help you build a plan that gives you confidence about your financial future.
Ready to find out if you're prepared to retire from Intel? Schedule a free consultation today, and we can help put you on track for the retirement you want.
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FAQs
What are the eligibility requirements to retire from Intel in 2025?
To be considered “retirement eligible,” you generally need to meet one of two conditions:
Be at least 65 years old
Meet the rule of 55 (55 years old with at least 15 years of experience at Intel)
Meet the rule of 75 (your age plus years of service at Intel must equal 75 or more).
Meeting these requirements impacts how your stock compensation, SERMA credits, and retiree medical benefits are treated.
How does the Rule of 55 work with Intel’s 401(k)?
If you separate from Intel in the year you turn 55 or later, you can withdraw money from your Intel 401(k) without the 10% early withdrawal penalty. This can be especially helpful if you retire before 59½ and need access to retirement funds.
Can I keep my Intel health insurance after retirement?
If you meet retirement eligibility, you can enroll in the Intel Retiree Medical Plan (IRMP). Coverage options vary depending on whether you’re Medicare-eligible, and if you qualify (hired before 2014), SERMA credits can offset premiums and other medical costs.
What happens to my Intel stock units (RSUs) and stock options when I retire?
If you’re retirement eligible (Rule of 75 or age 65+), Intel offers favorable treatment, you may get accelerated vesting and a longer window to exercise stock options. If you leave before meeting eligibility, unvested awards are typically forfeited.
Do employees hired after 2011 get a pension at Intel?
No. The Retirement Contribution Account (RCA) and Minimum Pension Plan (MPP) were phased out for hires on or after January 1, 2011. Current Intel employees primarily rely on the 401(k) Savings Plan, company match, and stock compensation.
Do I need a financial advisor to retire from Intel?
You’re not required to work with an advisor, but Intel’s benefits are complex. A fee-only fiduciary financial advisor who understands Intel’s plans can help you:
Maximize Intel-specific benefits (401(k), SERMA, stock awards)
Plan for tax-efficient withdrawals
Integrate Social Security and Medicare with your retirement income plan