Life after ConocoPhillips (COP): Should I work in retirement?

Dear HR,

I’m about to retire from working at ConocoPhillips after more than 25+ years. However, I can’t seem to imagine life not working since I’ve been doing it for as long as I can remember, and I actually may prefer to stay working in retirement even though I don’t need the money. Is it common for people to do this after working at ConocoPhillips?

-Mr. ConocoPhillips

Dear Mr. ConocoPhillips,

Thank you for your question. Several former ConocoPhillips workers make the decision to work in retirement just because they take pleasure in it. Others do it for the monetary advantages, and some just want to enjoy their lives such as being with family and friends. An individual making a choice on to either carry on working full-time or just part-time has to be based on the benefits they obtained from employment. The benefits that a person acquires from employment can be separated into 2 categories; financial and emotional.

Here are the financial benefits:

FINANCIAL BENEFITS OF WORKING

Compensating for the Decreased Value of Savings or Investments.

Although low interest rates have increased lump-sums, it makes it more difficult to induce portfolio income. Some decide to resume working just to compensate for the subpar performance of their savings and investments.

Hypothetically, you took a COP offer & parted ways with the company earlier than you desired and received less retirement savings than you needed.

Rather than using up the acquired money, some people make the choice to be employed for a little longer to buy the things they’ve always denied themselves before.

Meeting Financial Requirements of day-to-day living.

During retirement, one’s expenses can increase; as a result, continuing work is not such a bad idea to resolve that problem.

Maintain Insurance or Benefits.

An individual might stay employed for longer with the objective to keep their insurance and/or benefits. A majority of employers actually provide free to low-cost health insurance for part-time employees.

EMOTIONAL BENEFITS OF WORKING

Preserving Productivity and Involvement.

Hanging onto work, even if it’s part-time, is an amazing way to continue utilizing the abilities one has learned through decades of experience. Not only that, they’re able to maintain their relationships with their friends and coworkers.

Enjoy Yourself at Work.

Disregard the Social Security program and the retirement age that the government has placed upon everyone. Only you should be the one to dictate how your life should be going and which direction to take it. Many people authentically take pleasure in working and continue to do so because it adds value to their lives.

A New Job Opportunity Arises.

You may unexpectedly encounter exciting job opportunities at a period of time in your life just when you’ve been planning to retire.

 
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
ConocoPhillips offers a defined benefit pension plan called the ConocoPhillips Retirement Plan, vesting employees after three years. Benefits are calculated based on final average salary and years of service. The ConocoPhillips Savings Plan (CPSP) is the company’s 401(k) plan, matching 6% of contributions and adding a discretionary 3% based on performance. The plan includes immediate 100% vesting and supports traditional and Roth contributions. [Source: ConocoPhillips Benefits Overview, 2022, p. 20]
Merger and Layoffs: ConocoPhillips is set to merge with Marathon Oil in a deal worth over $22 billion, which will likely lead to at least 500 job cuts. The merger aims to achieve $500 million in cost savings and increased operational efficiency, though it may result in localized negative impacts, particularly in Houston (Sources: KTRH, Yahoo News). Financial Performance: ConocoPhillips reported strong financial results for the first half of 2024, with a production increase and substantial cash flow. The company generated $10.2 billion in cash from operations (Source: ConocoPhillips). Operational Strategy: The merger is part of a broader consolidation trend in the oil and gas industry, aiming to enhance production and shareholder value (Source: KTRH).
ConocoPhillips grants stock options and RSUs to incentivize employees. Stock options allow employees to buy shares at a set price after vesting, while RSUs are awarded with vesting conditions such as tenure or performance. In 2022, ConocoPhillips focused on RSUs to retain talent and align with strategic goals. This continued in 2023 and 2024, with broader RSU programs and performance-linked stock options. Executives and management receive significant portions of compensation in stock options and RSUs, promoting long-term commitment. [Source: ConocoPhillips Annual Reports 2022-2024, p. 91]
ConocoPhillips made notable changes to its healthcare benefits in 2022, including expanded preventive care and chronic disease management services. The company introduced new telehealth options and wellness programs by 2023. In 2024, ConocoPhillips continued to focus on comprehensive employee healthcare and integrating innovative solutions. The strategy aimed to support overall health with enhanced mental health resources and preventive care services. ConocoPhillips’ updates reflected a commitment to maintaining robust benefits and addressing employee needs effectively.