Your Banner Health Retirement Checklist
As you near the end of your career at Banner Health, you’ll want to make sure you’re truly prepared for retirement. Whether you're five years out or planning to retire next year, this guide will help you make informed decisions about every aspect of your retirement planning.
5+ Years Before Retirement: Foundation Building
In this early stage, you can lay the groundwork for your retirement success. With five or more years remaining in your Banner Health career, you have plenty of time to maximize your savings. The investments you make during this period also have real potential to compound and grow, making this phase especially important for building long-term wealth.
Review Your Banner Health Retirement Benefits
Contribute to Your 401(k) or 403(b) Plan
Your Banner Health 401(k) or 403(b) will be the primary vehicle to save for retirement. Check your current contribution rate and make sure you’re contributing as much as you can. These final years are a great opportunity to kick your savings into overdrive and boost your wealth in the home stretch.
If you have a 401(k), be sure you’re investing enough to capture the full 4% employer match. And if possible, contribute even beyond that. Every dollar counts when you’re nearing retirement.
If you’re over 50, catch-up contributions allow you to invest even more in your retirement plan beyond standard IRS limits.
Review HSA Contributions
If you're enrolled in Banner's HSA-eligible health plan, maximize contributions to get the triple tax benefits. HSA funds can be used tax-free for medical expenses in retirement and function as a traditional IRA after age 65 for non-medical expenses.
Check for Frozen Pension Benefits
Banner Health has frozen all pensions for employees and discontinued the pension plan. However, if you started working with Samaritan, Lutheran, or Banner prior to 1992, or Sun Health prior to 2008, you MAY have a pension benefit. Contact the appropriate pension administrator to verify any potential benefits, such as:
Banner Health Retirement Income Plan (Samaritan Health)
Lutheran Health Systems legacy benefits
Sun Health legacy benefits
Set Your Retirement Goals
First, determine how much income you’ll need in retirement. Estimate your expenses, factoring in potential healthcare costs, emergencies, and more. Consider your desired retirement lifestyle and calculate how much you would need to make it feasible. Account for inflation over your retirement years, too.
Then, map out your retirement income, including:
Banner Health 401(k) or 403(b) retirement benefits
Personal IRAs and investment accounts
Social Security benefits
Medicare coverage
Any legacy pension benefits
Part-time work or consulting income, if applicable
Will your income be enough to cover your expenses and fund your desired lifestyle? If not, now is the time to adjust your strategy to maximize your wealth in retirement.
Optimize Your Tax Strategy
Taxes are a major factor in any retirement savings plan. By optimizing your tax strategy, you can keep more of the money you’ve worked so hard for. Making a mistake, on the other hand, could cost you.
Roth vs. Pre-Tax Contributions
While still earning Banner Health income, consider converting traditional (pre-tax) retirement account funds to Roth accounts. This strategy can reduce future required minimum distributions and provide tax-free income in retirement.
However, if you're in peak earning years, you may want to prioritize pre-tax contributions to reduce current tax liability while building retirement wealth.
For most people, the ideal approach will be a combination of the two: pre-tax and Roth. This gives you the best of both worlds while providing more tax diversity during retirement.
Meet Clients Who Chose Retirement
From worker to world traveler, snowboarder, and mountain biker!
3–5 Years Before Retirement: Strategic Planning
This phase is when retirement planning transitions from a distant goal to an approaching reality. During these years, you'll refine your investment approach, develop comprehensive Social Security and Medicare strategies, and start making concrete plans for your post-Banner Health life.
Investment Strategies
Adjust Asset Allocation
Gradually shift toward a more conservative investment mix as you approach retirement. A common rule of thumb is to subtract your age from 110 to determine what percentage of your investment portfolio should be in stocks vs. bonds.
For example, if you’re 63 years old, you would subtract 60 from 110 to get 47. That means you would want 47% of your investments in stocks, and the remaining 53% in bonds or other low-risk assets.
Consider Target Date Funds
Banner's partnership with Fidelity offers target date funds that automatically adjust allocation as you near retirement. These can put your investments on a reliable autopilot during your transition years.
Plan for Sequence of Returns Risk
Sequence of returns risk means the risk of taking withdrawals during a market downturn early in retirement. This can hurt your savings long-term. To protect your wealth, it’s smart to keep one to two years of living expenses in conservative, stable investments (like cash or short-term bonds). That way, you won’t have to sell stocks at a loss if the market drops.
Plan for Social Security
If you haven’t set up a Social Security account, this is a good time to do so. Register at ssa.gov to access your earnings record and benefit estimates. Review your earnings history, and if you see any possible inaccuracies, report the discrepancies.
Time Your Social Security Benefits for Maximum Income
Your SSA full retirement age depends on when you were born:
Born 1943-1954: Age 66
Born 1955-1959: Age 66 + 2 months per year
Born 1960 or later: Age 67
You can start claiming Social Security benefits at 62, but this will reduce your benefits by up to 30%. It’s always better to wait until you reach full retirement age.
In fact, you may want to wait even longer. Delaying your benefits after you reach full retirement age will increase your benefits by 8% per year up to age 70. If possible, this is a great way to boost your lifetime income in retirement.
Plan Your Healthcare Coverage
Medicare becomes available at age 65. However, there are several types of Medicare, and not all of them are included for free:
Part A (Hospital): Usually free if you've worked 40+ quarters over your career
Part B (Medical): Requires monthly premiums
Part D (Prescription): Separate premium required
Medigap or Medicare Advantage: Additional coverage options
If you retire before age 65, you’ll have to cover the gap between your employer's healthcare benefits and the start of Medicare. Your options include:
COBRA continuation from Banner Health (up to 18-36 months)
ACA marketplace plans (private insurance)
Spouse's employer coverage (if applicable)
2–3 Years Before Retirement: Detailed Planning
With retirement now clearly on the horizon, this phase involves detailed preparation for your retirement transition. You'll start navigating Medicare enrollment timelines, fine-tuning your estate planning, and developing concrete withdrawal strategies.
Plan for Medicare Enrollment
You will be able to enroll in Medicare three months before your 65th birthday. If you’re approaching that age, start researching Medicare options and prepare for enrollment. It's best to start thinking about filing for Medicare before retirement, because failing to file within the enrollment window can lead to substantial Part B premium penalties.
If you’re still going to be working at 65, you can coordinate Medicare with your Banner Health coverage. As a large employer (20+ employees), Banner Health is a primary payer. You can delay Medicare Part B enrollment without penalty if you maintain Banner coverage. However, you will have to enroll in Medicare within eight months of leaving Banner coverage to avoid penalties.
Review Your Estate Plan
It’s never too early to start estate planning. Review all the beneficiaries listed for your retirement accounts, and make any changes if your beneficiary preferences are outdated. You will want to:
Update wills and trusts to reflect current wishes (if necessary)
Review power of attorney documents
Consider healthcare directives and advance directives
Evaluate the estate tax implications of large retirement account balances
Develop a Withdrawal Strategy
Now is also a good time to plan the sequence of retirement account withdrawals to minimize your taxes. A common strategy would be:
Taxable investment accounts first
Then, tax-deferred accounts (401k, traditional IRA)
Finally, tax-free accounts (Roth IRA, HSA)
A fiduciary financial advisor can help you optimize your distribution strategy.
Meet Clients Who Chose Retirement
Setting a retirement date isn’t easy, but it’s a lot easier with a Fiduciary and a plan.
1–2 Years Before Retirement: Final Preparations
The final stage is when retirement planning becomes retirement execution. This period means putting all the pieces of your retirement puzzle into place. You'll coordinate with Banner Health HR, finalize Medicare decisions, and ensure all systems are ready for your transition from employee to retiree.
Set Your Official Retirement Date
Start by working with your HR department to determine your last day of work and understand Banner's retirement notification requirements. You'll want to plan for any accrued PTO payout and confirm your final paycheck and benefit termination dates.
If possible, consider retiring at year-end to maximize final-year 401(k) contributions. This timing also aligns well with Banner's true-up matching contribution that comes in the first quarter. If you're married, coordinate with your spouse's retirement timing to optimize your combined benefits strategy.
Enroll in Medicare (if retiring at 65+)
You'll want to apply for Medicare about three months before your 65th birthday. This gives you time to research your options and choose between Original Medicare or Medicare Advantage plans. Don't forget to select prescription drug coverage (Part D) and consider whether Medigap supplemental insurance makes sense for your situation.
Make sure to inform Banner's benefits department of your Medicare enrollment to ensure proper coordination of benefits if you're continuing Banner coverage temporarily during your transition.
Prepare Your Financial Accounts
Consider rolling old employer 401(k) accounts into your Banner Health plan for simplified management, or into IRAs for broader investment options. You'll also want to set up systematic withdrawal schedules that will provide steady income throughout retirement while minimizing taxes.
12 Months Before Retirement: Implementation
This is when planning transforms into action. You'll submit official applications and complete all the paperwork that will provide your retirement income.
Submit Official Applications
Apply for Social Security and Benefits
Submit your Social Security application about three to four months before you want benefits to begin. You can do this online at ssa.gov or by calling 1-800-772-1213. At the same time, work with Banner Health HR to complete all retirement paperwork and understand important deadlines like COBRA coverage elections.
Plan Your Healthcare Transition
Take time to verify that your current doctors and specialists accept Medicare to avoid any surprises after you retire. Review your medications and make sure your chosen Medicare Part D plan covers them adequately. You can also get final health screenings done while you're still covered by Banner's insurance.
Consider whether long-term care insurance makes sense for your situation, since Medicare provides only limited long-term care coverage.
Final Months: Last Minute Tasks
Your final month involves confirming all details and handling last-minute administrative tasks to ensure nothing falls through the cracks.
Organize Your Finances
Set up checking accounts specifically for retirement income deposits and arrange for automatic transfers between accounts. Update direct deposit information for Social Security and retirement distributions so everything flows smoothly from day one of retirement.
Complete your retirement portfolio allocation and set up systematic withdrawal plans. If appropriate for your situation, consider annuities for guaranteed income portions of your retirement strategy.
Final Administrative Tasks
Review your final 401(k) or 403(b) account statements to make sure everything looks correct, and update your contact information with all benefit providers. Create an organized filing system for important documents like:
Social Security award letters
Medicare cards
Retirement account statements
Insurance policies
Estate planning documents
Remember that if you need temporary health coverage, you have 60 days after losing Banner coverage to elect COBRA, though premiums will be your responsibility.
Your First Year of Retirement
At long last, you’ve made it to retirement. Congratulations! This is when you'll find out how well your plans work in practice and make any necessary adjustments.
Monitor How Things Are Going
Keep track of your actual retirement expenses compared to what you projected. You might find you're spending more or less than expected, which means you may need to adjust how much you're withdrawing from your accounts. Review your investment performance regularly to make sure you're on track.
Double-Check Your Healthcare Coverage
Get familiar with your actual Medicare costs and coverage. If you find gaps in your coverage, consider supplemental insurance. This is also a great time to start using HSA funds for qualified medical expenses if you have them.
Plan for Ongoing Reviews
Review and rebalance your investment allocations annually, and adjust for any changes in your risk tolerance and income needs. Keep an eye on fees and expenses across all your accounts to make sure you're not paying more than necessary.
Work with a Fiduciary Financial Advisor
Fiduciary financial advisors are legally required to act in your best interests. A qualified fiduciary can help you optimize your withdrawal strategies, coordinate your Banner benefits with Social Security, and develop tax-efficient plans for your retirement income. They can also help you navigate complex decisions about required minimum distributions and estate planning as your needs evolve.
Are You Ready for a Smooth Transition?
Retiring from Banner Health is a major transition. The years you've spent caring for others have earned you the right to a comfortable, worry-free retirement. By taking the steps outlined in this checklist, you're ensuring that your transition from Banner Health employee to retiree is as smooth and successful as possible.
At TrueWealth Financial Partners, we specialize in helping professionals like you prepare for retirement. Our fiduciary financial advisors understand Banner Health's unique retirement benefits and can help you:
Create a comprehensive retirement timeline tailored to your specific situation
Optimize your 401(k) or 403(b) withdrawal strategies for maximum tax efficiency
Navigate Medicare enrollment and healthcare coverage transitions
Coordinate Social Security claiming strategies with your other retirement income
Develop estate planning strategies that protect your legacy
Don't navigate this critical transition alone. The decisions you make now will impact every day of your retirement.
Schedule a complimentary consultation today, and we’ll be happy to help you make your golden years truly golden.
Meet Clients Who Chose Retirement
Retiring at 55 takes a special strategy.