A Guide to P&G's Retirement Plans

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As a Procter & Gamble (P&G) employee, you’re equipped with two powerful retirement plans to secure your financial future: the Profit Sharing Trust & Employee Stock Ownership Plan (PST Plan) and the Savings Plan. This guide breaks down both plans and offers tips to maximize their benefits for your retirement goals.


The PST Plan: A Company-Funded Ownership Benefit

The PST Plan is a standout feature of P&G’s benefits, fully funded by the company to reward loyalty and promote ownership. Here’s what defines it:  

  • Annual Contributions: Each year (July 1–June 30), P&G contributes to your PST account with cash for Common Stock and Preferred Stock shares, aligning your success with the company’s growth.  

  • Stock Details: Common Stock carries its purchase-date cost basis, while Preferred Stock has a fixed basis of $6.82—valuable for tax planning.  

  • Diversification: At age 50, you can diversify investments, keeping at least 40% in P&G stock.  

  • Vesting: You’re fully vested after 4 years of service plus 1,000 hours in your 5th year—or earlier upon age 65, disability, or death—encouraging long-term commitment.


The Savings Plan: Your Flexible 401(k) Option

The Savings Plan complements the PST Plan, letting you take charge of your retirement savings:  

  • Employee Contributions: Deduct pre-tax or Roth 401(k) contributions from your paycheck—up to 50% of pay or the IRS limit ($23,500 in 2025, plus $7,500 catch-up if 50+; $11,250 catch-up if 60–63). Auto-enrolled in pre-tax, but you can adjust or opt out anytime.  

  • Immediate Vesting: Your contributions are 100% yours from day one—no service requirement.  

  • Investment Choices: Pick from 12 options to diversify your portfolio beyond P&G stock.  

  • Rollovers: Consolidate prior employer plans or IRAs into this plan, fee-free, for streamlined management.


Maximizing Your P&G Retirement Plans

To optimize these benefits, consider:  

  • Engage Both Plans: The PST Plan grows with company contributions, but adding to the Savings Plan accelerates your savings.  

  • Stay Educated: Use P&G’s plan guides and Financial Education Center to master your options, or consider working with an advisor who understands P&G. 

  • Adjust Regularly: Review your Savings Plan investments to match your evolving goals.  

  • Track P&G Performance: The PST Plan ties your wealth to P&G’s success—monitor its stock and strategy.


P&G’s retirement plans lay a strong foundation for your future. Understanding and leveraging the PST and Savings Plans can help you build a robust retirement portfolio.

Navigating these plans can be intricate. Vaultis Private Wealth specializes in guiding P&G employees through their unique benefits. Our team offers personalized advice to align your PST and Savings Plans with your long-term goals. Contact us to enhance your retirement strategy.


Disclosures:

The information in this blog is for educational purposes only and is not intended as personalized financial, investment, tax, or legal advice. The retirement plans discussed may not be suitable for everyone, as individual goals, risk tolerance, and circumstances vary. Consult a qualified financial advisor, tax professional, or legal advisor before acting to evaluate your situation. Past performance does not guarantee future results, and investments involve risks, including potential loss of principal. Tax laws may change, potentially affecting these plans; this content reflects information as of September 28, 2024. Vaultis Private Wealth is not affiliated with Procter & Gamble, which does not endorse this content or compensate Vaultis for any services.