In the Home Stretch: Preparing for Retirement at Intel
After years of hard work, you're in the home stretch of your Intel career. If you’re like most workers nearing the finish line, this is both an exciting and nerve-wracking time. It's also the most critical time for your retirement planning.
The final years before retirement aren't the time to coast. Right now, even small moves can have a major impact on your retirement security. Here's what you prioritize before you cross the finish line.
1. Max Out Your Catch-Up Contributions
Once you hit 50, the IRS gives you a gift: catch-up contributions. These let you contribute extra money to your retirement accounts beyond the normal limits. 2025 brings some especially good news for Intel employees.
This year, if you're 50 or older, you can contribute a total of $31,000 to your 401(k) ($23,500 base + $7,500 catch-up).
If you are age 60–63, you get even more leeway. Thanks to new "super catch-up" contributions, you can invest $34,750 ($23,500 + $11,250).
If you have an IRA, age 50+ unlocks an additional $1,000 beyond the usual $7,000, for a total contribution of $8,000.
These catch-up contributions are your chance to turbocharge your savings when your Intel salary is likely at its peak. Even if you can't hit the full amount, contribute what you can. Now more than ever, every dollar counts.
2. Optimize Your Intel Stock Benefits
As an Intel employee, you have access to stock benefits that most workers can only dream of. But these benefits come with deadlines and decisions that can't be undone once you retire.
Employee Stock Purchase Plan (ESPP): You're getting Intel stock at a 15% discount—that's an immediate return most investments can't match. But should you keep participating as retirement approaches? Consider your overall portfolio balance and whether you're becoming too concentrated in Intel stock.
Restricted Stock Units (RSUs): Check your vesting schedule carefully. You don't want to leave money on the table by retiring before shares vest. If you have RSUs vesting close to your retirement date, you might want to time your departure strategically.
Stock Options: Here's where timing gets critical. If you are eligible for retirement, you likely have up to 12 months before your stock options retire. If you are retiring before that eligibility window, you may only have 90 days. If you have unexercised options, plan ahead. Consider the tax implications of exercising before versus after retirement, and don't let valuable options expire.
The key is balance. Intel stock might be a great investment, but having too much of your retirement tied up in your employer's stock adds unnecessary risk, no matter how strong the company may be.
3. Check Your Intel Pension Options
If you're eligible for Intel's pension plan (hired before 2011), this could be a significant piece of your retirement puzzle. You'll typically have choices to make about how to receive your benefits.
A lump sum gives you control but puts the investment risk on you.
Monthly payments provide steady income but less flexibility.
There's no universally right answer. The right choice will depend on your other income sources, investment skills, and personal preferences. A fiduciary financial advisor can help you make the right choice for your situation.
4. Navigate Your Deferred Compensation Carefully
Intel's deferred compensation plan (SERPLUS) can be a powerful tool, but it requires careful handling in your final working years.
Unlike 401(k) funds, deferred compensation is an unsecured promise from Intel. While the company is financially strong, this money isn't protected like FDIC-insured deposits or securities in your brokerage account.
More importantly, you generally can't change your distribution elections once they're made. If you elected to receive payments starting at 65, you can't usually change that to 62 if your plans shift. Review your elections now and make sure they still align with your retirement timeline.
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5. Plan for the Healthcare Benefits Transition
Intel's health benefits are generous, but they change when you retire.
If you retire before 65, you might be able to continue Intel health coverage, but expect to pay more than you do as an active employee.
COBRA is also an option, but it's typically expensive and limited to 18 months.
Once you hit 65, Medicare becomes your primary coverage. Intel may offer supplemental coverage that works alongside Medicare, but the costs and coverage will be different from what you have now.
Start researching Medicare options at least a year before you turn 65. The decisions you make during your initial enrollment period can affect your costs for years to come.
6. Don't Get Too Cautious Too Soon
As retirement approaches, many Intel employees move their 401(k) investments to bonds and cash, thinking they're playing it safe. This can actually be risky for a different reason.
If you retire at 62, your money might need to last until you're 92. That's 30 years of potential inflation and growth you're giving up if you get too conservative too early.
A common guideline is to subtract your age from 110 to get your stock allocation. So at age 60, you might consider having 50% of your portfolio in stocks. But guidelines aren't rules. Your specific situation might call for a different approach.
7. Coordinate Your Social Security Strategy
When you claim Social Security can make a huge difference in your lifetime benefits. This is especially important for Intel employees who might have other income sources that give them flexibility in timing.
You can start Social Security as early as 62, but you'll get reduced benefits (about 70% of your full benefit if your full retirement age is 67).
At your full retirement age, you can claim 100% of your Social Security benefit.
But if you wait until 70, you'll get 124% of your full benefit. (Every year you delay between full retirement age and 70 earns you about 8% more in benefits.)
So, if you are able to support yourself until 70 through your retirement benefits and other savings, delaying Social Security could earn you even more money in the long run.
8. Test Drive Your Retirement Budget
Before you retire, try living on your projected retirement income for three to six months. This reality check will show you whether your numbers work in practice, not just on paper.
Include all your expected income sources:
Social Security
Intel pension (if applicable)
401(k) withdrawals
Any part-time work income.
If the test run reveals problems, you still have time to adjust. Maybe you need to work another year, reduce expenses, or revise your retirement lifestyle expectations. (Don't forget to account for taxes, though. Retirement income is often more heavily taxed than people expect.)
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9. Plan Your Exit Strategy
When you tell Intel about your retirement plans and when you actually leave can affect your benefits and taxes. Consider timing your retirement to maximize:
RSU vesting
Annual bonus payments
ESPP purchase periods
Leaving early in the year versus late in the year can have different tax implications, especially if you have a large amount of deferred compensation or stock options to deal with.
Ready to Cross the Finish Line Strong?
The home stretch of your career is the golden opportunity to make the most of Intel’s generous benefits. These final years aren't the time to set your finances on autopilot.
At TrueWealth Financial Partners, we understand the unique challenges Intel employees face as they approach retirement. We've helped numerous tech employees navigate complex stock compensation, coordinate multiple income sources, and make the most of their final working years.
As a fee-only fiduciary firm, we don't sell products or earn commissions. Our only job is to help you make the best decisions for your situation.
Ready to make your final years at Intel count? Schedule a free consultation, and we can help you make your golden years truly golden.
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