Smart Retirement Planning for AT&T Employees Amid 2025 Market Volatility

Worried about your AT&T retirement plan in today’s volatile market? Learn smart strategies to protect your 401(k), manage inflation, and navigate pension changes in 2025.

Michael Lee

By Farther

the farther outlook

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AT&T: Smart Retirement Planning for AT&T Employees Amid 2025 Market Volatility

For many AT&T employees in 2025, particularly those who are nearing or already enjoying retirement, market volatility remains a major worry.

According to a recent study by Fidelity Investments, only 53% of pre-retirees believe they are on track because of inflation and volatile markets, whereas over 70% of retirees feel confident in their retirement plan.¹

The average 401(k) contribution rate increased to 14.3% in Q1 2025, close to Fidelity's 15% target, indicating that Americans are prioritizing retirement savings despite these obstacles.² Particularly for AT&T workers who might be navigating unusual retirement plan options, this is a positive trend.

Top Concerns for AT&T Employees and Retirees

Inflation Pressure: According to 90% of retired Americans, inflation is still their biggest financial worry.³ Both long-term income planning and daily living are impacted by rising prices.
Increasing Bond Volatility and Interest Rates: Bond values may change as interest rates rise, which would especially impact people who are getting close to retirement. The market is still under pressure from the "bond vigilante" effect, which occurs when investors sell bonds in anticipation of inflation.⁴
Risk of Sequence of Returns: Retirement savings may be depleted more quickly if bad market performance happens early in retirement. To lessen this, structured withdrawal plans and appropriate diversification are crucial.⁵‍

What AT&T Employees Need to Know

Pension Risk Transfer

96,000 participants were impacted when AT&T transferred more than $8 billion in pension obligations to Athene Holding Ltd. in 2023. Retirees who were concerned about the security of their benefits filed lawsuits in response to this action.⁶

401(k) Legal Disputes

The way AT&T handles 401(k) funds that have been forfeited is another area of legal concern. By using those funds to offset employer contributions, the company allegedly broke ERISA regulations, according to lawsuits.⁷

New Union Agreements

Positively, AT&T has recently signed new labor agreements with the Communications Workers of America (CWA) to improve healthcare coverage contributions and retirement benefits, demonstrating a renewed dedication to its employees.⁸

How to Manage Market Volatility: Practical Strategies

Diversify Based on Risk Tolerance: Ensure your 401(k) and retirement accounts are balanced across stocks, bonds, and cash equivalents.
Use Time-Based Asset Buckets: Divide savings into short-, mid-, and long-term buckets to create predictable income and reduce risk exposure.⁵
Avoid Emotional Decisions During Downturns: Reacting to short-term market swings can derail a long-term plan. Stay focused on your objectives.
Work With an AT&T-Savvy Financial Advisor: Your retirement benefits are complex—consult someone who understands the AT&T pension and 401(k) structure.

Many AT&T employees are navigating a retirement system filled with unique rules, plan changes, and market pressures. My role is to help them cut through that noise, protect their future, and create a plan that works in good markets and bad.

Final Thoughts

Market volatility is a natural part of investing, but for AT&T employees and retirees, the stakes are especially high given the unique structure of your retirement benefits. Staying informed, avoiding knee-jerk reactions, and working with a trusted advisor can help you weather uncertainty and stay on course for a confident retirement.

Next Steps: Meet with an AT&T-Focused Advisor

If you would like to meet with a financial advisor who specializes in the AT&T retirement plan, click here or email us directly at focus@farther.com.

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*Farther is an independent company and is not affiliated with, endorsed by, or sponsored by AT&T, CWA, or Fidelity. Any references to AT&T, CWA, or Fidelity are for informational purposes only.

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Michael Lee

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Principal, Wealth Advisor & Focus Team Lead

With over 10 years of experience as an advisor, Michael brings a laser-focused approach to holistic wealth management. His first foray into retirement planning was when his mother retired from Kaiser Permanente Walnut Creek. As a first generation American, Michael had the duty of translating for his family – and he felt, firsthand, the stress and anxiety that large financial decisions can cause for the majority of retirees. Michael provides fiduciary advice to soon-to-be retirees of large corporations. And he makes it his number one priority to chop down complex financial concepts – including pensions, 401K/TSA, Social Security, and taxes – into easy-to-understand bites for his clients. Michael’s expertise enables him to add a strong layer of financial advice to a company’s HR team – with a particularly strong understanding of the retirement programs offered by PG&E, AT&T, Kaiser Permanente, Chevron, Northrop Grumman, Boeing, and Raytheon. Born and raised in Oakland, CA, Michael is an active member of the dog rescue community – having fostered many dogs through rescue organizations including Chows Plus and Love Second Chances. You can find him exploring around town with his latest rescue, Chow Chow Maple.

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