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Healthcare Provider Update: General Mills primarily collaborates with UnitedHealthcare for its employees' healthcare coverage. As we look ahead to 2026, significant healthcare cost increases are anticipated. Factors contributing to this rise include the expiration of enhanced federal ACA premium subsidies and increasing medical costs within the marketplace. Reports indicate that some states might see premium hikes of over 60%, with experts warning that without legislative intervention, many consumers could face steep increases in out-of-pocket healthcare expenses, potentially rising as much as 75%. This scenario presents a notable challenge for both employees and employers as they navigate the shifting landscape of healthcare costs. Click here to learn more
'General Mills employees must recognize that inflation, rising health care costs, and tariffs can erode their retirement savings, making it crucial to plan proactively to safeguard their financial future.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.
'General Mills employees should understand that proactive financial planning is key to mitigating the long-term impact of inflation and rising health care costs, so that that their retirement savings can sustain them through unexpected financial challenges.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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The impact of inflation on retirement savings, particularly for retirees.
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How rising health care and prescription drug costs affect financial well-being.
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The importance of proactive financial planning for retirees, especially those at General Mills.
According to the Schroders 2025 U.S. Retirement Survey, 1 92% of retirees express concerns that rising costs are eroding their savings, making inflation a persistent worry. Despite signs of decreasing inflation, these concerns remain prevalent among retirees, including many General Mills employees. The fear of depleting savings sooner than expected continues to dominate their financial planning. Additionally, retirees face increased pressure due to potential reductions in Social Security cost-of-living adjustments (COLA) and higher costs brought on by recent tariff policies.
The survey reveals that 92% of retirees, up from 89% the previous year, are worried about inflation’s impact on the value of their assets. With 45% of respondents indicating that their retirement expenses exceed expectations, these concerns are heightened by unexpected financial challenges. 'Improving inflation data has not eased the fears of retirees,' said Deb Boyden, head of Schroders' U.S. defined contribution. 'Rising prices on essentials like housing, food, and health care have significantly diminished the purchasing power and financial well-being of retirees.'
Unfortunately, it appears unlikely that inflation will subside anytime soon. Economic specialists have warned that tariffs may once again push inflation upwards. Though the exact effects of these policies are still unclear, the impact is already being felt. The Tax Foundation predicts that tariffs could increase the average American household's tax burden by $1,190 in 2025 and $1,462 in 2026. 2 Retail giants like Walmart have hinted at price hikes, suggesting that many households, including those of General Mills employees, may face greater financial strain.
Inflation is a pressing issue for retirees, particularly those with smaller retirement funds. Many individuals nearing retirement age at General Mills companies may not be financially prepared for the rising costs of living. Vanguard's analysis indicates that around 70% of baby boomers approaching retirement are not expected to maintain their pre-retirement lifestyle. 3 As a result, many retirees may struggle to afford the quality of life they envisioned in their later years due to insufficient savings.
'Retired Americans, including General Mills retirees, are understandably concerned about how inflation could affect their savings in light of potential tariffs,' explained Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
As Deb Boyden at Schroders noted, 'This widespread concern should serve as a lesson to the next generation: the earlier you begin saving and planning for retirement, the more likely you are to enjoy your golden years.'
For those who rely on fixed incomes, such as many General Mills retirees, inflation can be particularly damaging. Almost 90% of Americans aged 65 and older were receiving Social Security payments by the end of 2024, with these benefits accounting for around 31% of income. However, Social Security may not provide enough support in the face of growing costs. The Senior Citizens League has projected that COLA will only be 2.5% in 2025, down from 3.2% in 2023, and well below the 8.7% adjustment in 2022, driven by pandemic-induced inflation. 4
The COLA adjustment may increase slightly if tariffs lead to further inflation, but it is unlikely to keep pace with the actual cost of living. The Consumer Price Index for Urban Wage Earners and Clerical Workers, used to determine COLA, is based on data from the third quarter of the year. However, retirees—including those at General Mills—might continue to struggle with inflation's effects on their savings and purchasing power, even with an increased COLA.
Prescription drug costs remain a key concern, especially for retirees. Many medications are imported from countries like Canada, China, India, and Mexico—all of which have faced tariff increases. The U.S. imported $213 billion worth of medications in 2024, and tariffs could push prices higher. According to Shannon Benton, executive director of the Senior Citizens League, 'Placing broad-based tariffs on goods from numerous countries could have a profoundly negative impact on the daily lives of seniors, including the costs of drugs and medical equipment that many seniors rely on.'
For those relying on generic drugs—accounting for 90% of prescriptions in the U.S.—tariffs may be especially burdensome. The thin profit margins in the generic drug industry may force international producers to absorb tariff costs, potentially raising prices and further burdening retirees like those at General Mills. If tariffs persist, foreign producers could exit the U.S. market, further driving up costs for medications.
Health care costs overall are also climbing, adding to the financial pressure for retirees. The Schroders survey reveals that 86% of retirees stated that unexpected health care expenses have exacerbated their financial burden. With health care now being one of the largest expenses in retirement, rising inflation will make it even harder for retirees, including those at General Mills, to manage their finances.
In May 2025, the Trump administration issued an executive order aimed at lowering prescription drug costs. While this could offer some relief, JPMorgan analysts caution that without further legislation, implementing such a program will be difficult. 5 Even with policy changes, prescription drug prices in the U.S. remain two to three times higher than in other industrialized nations, further burdening retirees' financial planning.
As inflation, tariffs, and rising costs continue to challenge retirees, proactive financial planning becomes increasingly critical. General Mills employees nearing retirement should be especially mindful of how inflation threatens their purchasing power and financial well-being. Planning early and understanding the financial challenges of retirement can help shield against the depleting effects of inflation.
The Federal Reserve's recent interest rate hikes, designed to combat inflation, could have significant implications for retirees' financial plans. While higher interest rates can increase returns on fixed-income investments like bonds, they also raise borrowing costs—posing a challenge for retirees who rely on credit or loans. This shift in interest rates may complicate retirement planning for many, including General Mills retirees, who may need to adjust their asset allocations.
Inflation, tariffs, and rising health care costs are creating additional financial strain for retirees, including those at General Mills. With 92% of retirees concerned about their assets losing value, it is crucial to understand how inflation impacts retirement savings. Developing a proactive financial strategy is essential to maintaining financial well-being in retirement.
Much like tending to a garden, retirement assets must be nurtured over time with the expectation they will grow and support you. Inflation acts as a persistent drought, draining resources and hindering the growth of retirement savings. Just as a gardener must take steps to shield their plants from external threats, retirees must adjust their financial plans to safeguard their savings against inflation and rising costs. Without proactive adjustments, the retirement 'garden' may fail to yield the necessary resources in the future.
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- Stages of Retirement for Corporate Employees
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- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
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Sources:
1. Schroders. ' Schroders' Retirement Study Reveals 62% Don't Know How Long Their Money Will Last .' 20 May 2025.
2. York, Erica; Durante, Alex. ' Trump Tariffs: Tracking the Economic Impact of the Trump Trade War .' Tax Foundation, 2 Jun. 2025.
3. Vanguard. ' More boomers prepared for retirement, but gaps persist .' 17 Jun. 2024.
4. Senior Citizens League. ' Cost-of-Living Adjustment for 2025 Announced at 2.5% .' 10 Oct. 2024.
5. Constantino, Annika Kim. ' Trump's plan to slash drug prices may struggle to get off the ground - here's what to know .' CNBC, 12 May 2025.
Other resources:
Kramer, Michael J. 'The Impact of Inflation on Retirement Savings.' Forbes , 10 Jan. 2024, pp. 5-7.
Brown, Linda. 'Healthcare Inflation and Retirees: Managing Rising Medical Costs.' The Wall Street Journal , 23 Mar. 2024, pp. 22-24.
Williams, Sarah. 'Social Security, COLA, and the Economic Impact of Inflation.' The Senior Citizens League , 15 Feb. 2024, pp. 12-14.
Sanders, Tom. 'Tariffs and Their Impact on Retirees' Spending.' The Tax Foundation , 5 Nov. 2023, pp. 9-11.
Johnson, Mark. 'The Financial Planning Crisis for General Mills Retirees.' Bloomberg Businessweek , 25 Jan. 2024, pp. 30-32.
How can employees of General Mills, Inc. maximize their benefits under the BCTGM Retirement Plan, and what factors are considered in determining pension amounts for those nearing retirement? This question aims to explore the intricate details of how General Mills, Inc. structures its pension benefits to support employees’ future financial stability. It's important for employees to understand the value of their years of service and how this affects their ultimate pension payout as they approach retirement.
Maximizing Benefits under the BCTGM Retirement Plan: Employees of General Mills can maximize their benefits under the BCTGM Retirement Plan by understanding how their years of service and negotiated benefit levels directly affect the pension they receive. The pension amount is determined by the length of service and a defined benefit formula based on the number of years of Benefit Service accrued. As employees approach retirement, they should consider whether they meet eligibility criteria for early or normal retirement, as these factors influence the ultimate pension payout(General_Mills_2024_Pens…).
What are the eligibility requirements for participating in the BCTGM Retirement Plan at General Mills, Inc., and how does this participation impact future retirement benefits? Employees should be well-informed about what constitutes eligibility to participate in the retirement plan. Understanding criteria such as service length, employment status, and union participation is crucial, as it directly relates to their ability to accrue retirement benefits.
Eligibility Requirements for BCTGM Retirement Plan: To participate in the BCTGM Retirement Plan, employees must be regular employees of General Mills covered by a collective bargaining agreement. Eligibility is automatic after completing a probationary period. Participation impacts future retirement benefits as employees begin to accrue pension benefits based on years of service, which contributes to their final payout during retirement(General_Mills_2024_Pens…).
In what ways does General Mills, Inc. ensure that benefits from the BCTGM Retirement Plan remain protected under federal law, and what role does the Pension Benefit Guaranty Corporation (PBGC) play in this? Knowledge of the protections available can significantly influence employees' assurance in the viability of their pension benefits. It is vital for employees to recognize how federal guarantees work in safeguarding their retirement benefits.
Federal Law Protections and PBGC's Role: The BCTGM Retirement Plan is protected under federal law, ensuring that employees’ retirement benefits are safeguarded. The Pension Benefit Guaranty Corporation (PBGC) insures vested benefits, including disability and survivor pensions, up to certain limits. This protection provides employees with assurance that their pensions are protected, even in the event of plan termination(General_Mills_2024_Pens…).
How does General Mills, Inc. address the complexities of vesting in the BCTGM Retirement Plan, and what can employees do if they are concerned about their vested rights? Vesting is a key concept that affects employees' access to benefits over their careers. Employees need to understand the vesting schedule outlined by General Mills, Inc. and the implications it has on their retirement plans.
Vesting in the BCTGM Retirement Plan: Employees vest in the BCTGM Retirement Plan after completing five years of Eligibility Service or upon reaching age 65. Once vested, employees have a non-forfeitable right to their pension benefits, which means they retain their pension rights even if they leave the company before reaching retirement age(General_Mills_2024_Pens…).
What options are available to employees of General Mills, Inc. if they experience a change in their employment status after being vested in the BCTGM Retirement Plan, and how might this impact their future retirement pensions? This question prompts discussion on the plan's provisions regarding reemployment and what employees should be aware of when considering changes to their employment status.
Impact of Employment Status Changes on Pension: If an employee's status changes after being vested in the BCTGM Retirement Plan, such as leaving the company, they may still be entitled to pension benefits. The plan outlines provisions for reemployment and how prior service years are counted toward future pension calculations. Employees who are reemployed may have their previously earned service restored(General_Mills_2024_Pens…).
How does the BCTGM Retirement Plan at General Mills, Inc. work in conjunction with Social Security benefits, and what should employees be aware of regarding offsets or deductions? This can encompass the interplay between corporate pension plans and governmental benefits, which is critical for employees to plan their retirement effectively.
Coordination with Social Security Benefits: The BCTGM Retirement Plan operates in addition to Social Security benefits. There are no direct offsets between the pension and Social Security benefits, meaning employees receive both independently. However, employees should be aware of how the timing of drawing Social Security and pension benefits may affect their overall financial situation(General_Mills_2024_Pens…).
What steps must employees of General Mills, Inc. take to initiate a claim for benefits under the BCTGM Retirement Plan, and how does the claims process ensure fairness and transparency? A clear comprehension of the claims process is essential for employees to secure their pension benefits. This question encourages exploration of the procedures in place to assist employees in understanding their rights and options.
Claiming Benefits under the BCTGM Retirement Plan: Employees must terminate employment before claiming their BCTGM Retirement Plan benefits. The claims process involves submitting the required forms, and employees must ensure they provide all necessary documentation for a smooth process. The pension is generally paid monthly, with lump-sum options available under specific circumstances(General_Mills_2024_Pens…).
How does the retirement benefit formula of the BCTGM Retirement Plan operate, and what specific factors should an employee of General Mills, Inc. consider while planning for retirement? Delving into the calculations involved in determining retirement benefits is important for employees to understand how their service years and other contributions come together to form their final retirement payout.
Retirement Benefit Formula: The retirement benefit formula is calculated based on the years of Benefit Service and a defined benefit level. As of 2024, for each year of Benefit Service, employees receive $87 per month (increasing to $88 after June 1, 2025). Planning for retirement involves considering how long they will work and the benefit level in place at the time of retirement(General_Mills_2024_Pens…).
What additional resources or support does General Mills, Inc. provide to assist employees in planning their retirement and ensuring they make the most of their benefits offered under the BCTGM Retirement Plan? Understanding the tools and resources available can empower employees to take proactive steps in managing their retirement plans effectively.
Resources for Retirement Planning: General Mills offers resources like the Benefits Service Center and online portals (e.g., www.mygenmillsbenefits.com) to assist employees with retirement planning. These tools help employees understand their benefits, calculate potential payouts, and explore options for maximizing their retirement income(General_Mills_2024_Pens…).
How can employees contact General Mills, Inc. for further information about the BCTGM Retirement Plan or specific queries related to their retirement benefits? This question is crucial so employees know the appropriate channels for communication and can seek clarification on any concerns they may have regarding their retirement planning.
Contact Information for Plan Inquiries: Employees can contact General Mills for more information about the BCTGM Retirement Plan through the Benefits Service Center at 1-877-430-4015 or visit www.mygenmillsbenefits.com. This contact provides direct access to support and answers to questions about their retirement benefits(General_Mills_2024_Pens…).
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