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BorgWarner Employees Confront the Fear of Running Out of Money in Retirement

Healthcare Provider Update: Healthcare Provider for BorgWarner BorgWarner offers health insurance coverage to its employees, but specific provider details can vary by location and plan. Typically, they provide options that may include large health insurance networks like Blue Cross Blue Shield or Cigna, as well as other regional insurers depending on the geographic area. Employees should check with their HR department for the precise providers available to them under BorgWarner's health plans. Projected Healthcare Cost Increases for BorgWarner Employees in 2026 In 2026, BorgWarner employees are likely to face significant healthcare cost increases as many factors converge to drive premiums higher. A report indicates that with the anticipated expiration of enhanced ACA federal subsidies, rising medical expenses-especially around specialty medications-and insurer rate hikes could see out-of-pocket premium costs soaring by as much as 75% for many individuals. Coupled with employers' plans to raise deductibles and out-of-pocket maximums to manage rising expenses, this could leave employees grappling with the financial implications of their healthcare coverage. Therefore, it is essential for BorgWarner employees to carefully review their health benefits and strategize to mitigate these rising costs. Click here to learn more

'To allay long-term financial concerns, BorgWarner employees may benefit from a comprehensive retirement strategy that addresses inflation, health care costs, and tax planning.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Proactive retirement planning—especially around inflation, health care, and shifting tax policies—can help BorgWarner employees gain clarity and reduce uncertainty in the years leading up to retirement.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

Key causes of retirement anxiety, including inflation, health care, and taxes.
Generational differences in money concerns and readiness.
The value of broad retirement planning approaches.

Retirement Anxiety is On The Rise

Employees across industries, including those at BorgWarner, have long worried about how they will fund retirement. These concerns have grown considerably in today’s economy. Nearly two out of three Americans (64%) said they worry more about outliving their resources than they do about dying, according to the Allianz Center for the Future of Retirement’s 2025 Annual Retirement Study. ¹

Main Causes of Retirement-Related Worry

The Allianz study lists several key triggers of these fears. Regarding long-term planning, 54% of respondents said inflation was their top worry. Increases in health care costs, housing, and food prices are still undermining people’s purchasing power.

Concerns around Social Security’s future and tax burdens are also high. 43% said they feared Social Security might not offer adequate support. And another 43% named high taxes as a major issue.

Generational Gaps in Money Stress

Gen X—often balancing care for both kids and aging parents—report the highest worry: 70% versus 66% of millennials and 61% of boomers. Among corporate workers, including those at BorgWarner, this dynamic underlines how family obligations can magnify retirement concerns.

The Gap Between Worry and Action

The survey shows a gap between concern and conversation: just 23% of respondents have talked about outliving their assets with a retirement specialist, down from 28% in 2024. ² That said, Americans are considering several strategies to allay these fears, ranking the following approaches as most helpful:

41% said cutting current spending to funnel more toward retirement 
44% said increasing retirement contributions 
39% said postponing retirement
While increasing contributions to retirement accounts could help address these concerns, barriers remain: daily necessities (63%), credit card debt (40%), mortgage or rent (35%) were top reasons people weren’t contributing more.

The Emotional Side of Retirement Anxiety

Retirement fears influence not just finances, but lifestyle, career choices, and family planning. Worries about independence, dignity, and quality of life often accompany fear of running short on funds.

Health care need are often underestimated too, complicating the equation. Medicare covers many basic services, but long‑term care, home assistance, and uncovered treatments can add large bills—adding uncertainty even for high‑income employees.

Broader Retirement Planning Matters

The Allianz findings emphasize planning well beyond just saving. With people living 25 to 30 years post‑work, a solid planning mindset is critical. As Kelly LaVigne, VP at Allianz Life, noted, “Americans areliving longer… your money needs to go farther. A good plan considers 25 to 30 years of retirement, not just the first ten.” ²

Key components often include:

Income strategies: setting up regular monthly disbursements from assets
Tax planning: reducing tax burdens on withdrawals
Health care planning: factoring in Medicare gaps and long‑term care
Inflation alignment: keeping income responsive to cost increases

Combined, these strategies can help build resilience, confidence, and preparedness even in uncertain times.

In Conclusion

The 2025 Allianz Retirement Study makes it clear: a majority of Americans—and BorgWarner employees among them—see the threat of running out of money as more frightening than death. Rising inflation, health care spending, and uncertainty around Social Security are central drivers. Fewer are taking direct action through planning conversations or boosted contributions.

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Yet there is opportunity. The IRS now permits catch‑up 401(k) contributions of up to $11,250 for those aged 60–63 in 2025—above the standard limit. For many, this is a practical way to fortify resources in those final working years.

A Final Thought

Think of retirement like a long sea voyage. Death may be the storm ahead, but empty savings are the leak that can sink the ship first. According to the Allianz study, 64% of Americans fear that leak more than the storm. For BorgWarner employees, the goal is to build a well-structured plan—with consistent income, planning for health costs, and tax awareness—that can keep the vessel afloat for the long haul.

Sources:

1. Allianz Life Insurance Company of North America, ' How Americans feel about retirement in 2025 ,' by the Allianz Center for the Future of Retirement ^TM , June 2025.

2. businesswire, ' Americans Are More Worried About Running Out of Money Than Death ,' April 22, 2025.

What is the 401(k) plan offered by BorgWarner?

The 401(k) plan at BorgWarner is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How does BorgWarner match employee contributions to the 401(k) plan?

BorgWarner offers a matching contribution to the 401(k) plan, which means they will match a percentage of the employee's contributions up to a certain limit.

Can employees at BorgWarner contribute to their 401(k) plan through payroll deductions?

Yes, employees at BorgWarner can contribute to their 401(k) plan through automatic payroll deductions, making it easy to save for retirement.

What is the eligibility requirement for BorgWarner's 401(k) plan?

Employees become eligible to participate in BorgWarner's 401(k) plan after completing a specified period of service, which is typically outlined in the plan documents.

Does BorgWarner offer a Roth 401(k) option?

Yes, BorgWarner provides a Roth 401(k) option that allows employees to contribute after-tax dollars, with the potential for tax-free withdrawals in retirement.

How can employees at BorgWarner access their 401(k) account information?

Employees can access their 401(k) account information through the designated online portal provided by BorgWarner's plan administrator.

What investment options are available in BorgWarner's 401(k) plan?

BorgWarner's 401(k) plan typically offers a range of investment options, including mutual funds, target-date funds, and possibly company stock.

Can employees at BorgWarner take loans against their 401(k) savings?

Yes, BorgWarner allows employees to take loans against their 401(k) savings, subject to certain conditions and limits set by the plan.

What happens to my BorgWarner 401(k) if I leave the company?

If you leave BorgWarner, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the BorgWarner plan if permitted.

Is there a vesting schedule for BorgWarner's 401(k) matching contributions?

Yes, BorgWarner has a vesting schedule for matching contributions, meaning employees must work for the company for a certain period to fully own those contributions.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

BorgWarner announced a major restructuring initiative in Q2 2024, including significant layoffs affecting approximately 10% of their workforce. The company is also modifying its pension plan, shifting from defined benefit to defined contribution schemes for new employees. Additionally, changes are being made to their 401(k) matching contributions.

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For more information you can reach the plan administrator for BorgWarner at 3850 Hamlin Rd Auburn Hills, MI 48326; or by calling them at +1 248-754-9200.