Retirement Healthcare: Basics of the N65 Stipend Plan for Nissan Employees

For many long-tenured employees of one company, one of the primary retirement benefits they think about is a company 401(k) or pension plan. But for Nissan employees, another potentially lucrative retirement benefit should be on your radar. 

I’m talking about the Nissan N65 Stipend Plan, a benefit that helps eligible retirees and their spouses manage healthcare costs in retirement.

Impact of Healthcare on Retirement Savings

According to a study from Fidelity, a 65-year-old individual may need $165,000 in after-tax savings to cover retirement health care expenses, on average. That’s a significant amount of money, and it’s just the average. If you retire sooner, live longer than average, or have above-average healthcare needs, you could wind up spending more. 

So, for those who have access to an employer-based retirement healthcare benefit, you should certainly consider its potential impact on your retirement plan. 

What is the N65 Stipend Plan?

When you turn 65, Nissan provides you with an annual stipend. Although healthcare or medical insurance isn’t in the name, this stipend plan is geared toward those costs.

So, how does the stipend function? That money is placed into a special account called a Health Reimbursement Arrangement, or HRA.

An HRA functions similarly to other types of healthcare-related investing accounts, such as Health Savings Accounts (HSAs) or Flexible Spending Arrangements (FSAs). However, there are some key differences to note with an HRA: 

• HRAs are funded by the employer, not the employee. 
• Typically, you can’t withdraw funds in advance. You must incur the expense first, then be reimbursed, hence the name. 
• An employer may exclude certain medical expenses even though the IRS qualifies them.

You can use the stipend to cover:

• Medicare premiums
• Supplemental insurance
• And other qualified out-of-pocket healthcare costs.

Which Nissan Employees Qualify for the N65 Stipend Plan? 

Not every person retiring from Nissan is eligible to receive the N65 Stipend Plan. Here are the eligibility requirements. 

• You must have been hired at Nissan’s Smyrna or Decherd plants before January 1, 2006. 
• You must also meet one of the following retirement criteria:
  • Retiring at age 65 or later with at least 5 years of service
  • Retired early between ages 55 and 64, with at least 10 years of service

Your spouse may also be eligible — if you were legally married for at least one year before retirement, and they also qualify for Medicare.

Dependent children are not eligible.

How Much Do Eligible Employees Receive through the Stipend Plan?

Nissan employees hired on or before April 1, 2001, will receive an annual stipend of $3,375.

If you were hired between April 1, 2001, and January 1, 2006, you get $3,100, pro-rated based on your years of service.

The funds are added to your HRA, and they roll over each year, up to a maximum of $12,400.

You can use your HRA to reimburse expenses like:

• Medicare Part B and D premiums
• Medicare Supplement or Advantage plans
• Vision, dental, and hearing costs
• And certain over-the-counter medical items

These expenses can be set up for auto reimbursement. In addition, you can manually submit qualified expenses. Just make sure you save your receipts or statements when submitting claims.

What Else Do I Need to Know about the N65 Stipend Plan? 

To receive the N65 stipend, you must enroll in a Medicare supplemental healthcare plan through VIA Benefits.

You have 90 days from the time you become eligible to enroll. Here’s the key thing to know. If you miss that window, you’ll lose access to the plan permanently. 

The same goes for your spouse — they must enroll through VIA Benefits when they turn 65.

If you or your spouse drops coverage from Nissan insurance before age 65, you lose your stipend and HRA benefits. There’s nothing you can do to get this benefit back. 

The Nissan N65 Plan is a powerful benefit, but it comes with important rules and deadlines.

Looking for Help Planning for Your Nissan Retirement? 

At First Family Wealth, we specialize in helping Nissan retirees put their retirement on cruise control. Take time to review your eligibility, enroll through VIA Benefits, and reach out to us at First Family Wealth for help if you need it. You can schedule a complimentary consultation directly by visiting this page.

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Investment Advisory Services are offered through First Advisors National. Financial planning services are offered through First Family Wealth. First Family Wealth and First Advisors National are not endorsed, retained, or affiliated with Nissan.