Discover 9 Surprising Insights About Social Security for Southwest Airlines Employees That Could Transform Your Retirement Planning

Healthcare Provider Update: Healthcare Provider for Southwest Airlines: Southwest Airlines collaborates with multiple health insurance providers, primarily utilizing Aetna and UnitedHealthcare for its employee health plans. These partnerships enable Southwest Airlines to offer its workforce a range of options for health coverage. Potential Healthcare Cost Increases in 2026: As we look ahead to 2026, Southwest Airlines employees are preparing for significant healthcare cost increases, which may greatly impact their out-of-pocket expenses. With projected ACA premium hikes exceeding 60% in certain states, the burden of rising healthcare costs is likely to be felt by employees more than ever. A recent industry survey indicates that over half of large employers are considering raising deductibles and out-of-pocket maximums, as they navigate growing medical costs driven by inflation and high drug prices. This financial landscape underscores the importance of proactive planning and informed health plan choices for employees aiming to mitigate these anticipated increases in healthcare expenses. Click here to learn more

Social Security’s been a fact of retirement life ever since it was established in 1935. We all think we know how it works, but how much do you really know? If you work for Southwest Airlines, here are nine things that might surprise you.

1. The Social Security trust fund is huge. At $2.9 trillion at the end of 2018, it exceeds the gross domestic product (GDP) of every economy in the world except the ten largest: China, the European Union, the United States, India, Japan, Germany, Russia, Indonesia, Brazil, and The United Kingdom.
2. Most workers including those at Southwest Airlines are eligible for Social Security benefits, but not all. For example, until 1984, federal government employees were part of the Civil Service Retirement System and were not covered by Social Security.
3. As an employee of Southwest Airlinesk, you don’t have to work long to be eligible. If you were born in 1929 or later, you need to work for 10 or more years to be eligible for benefits.
4. Benefits are based on an individual’s average earnings during a lifetime of work under the Social Security system. The calculation is based on the 35 highest years of earnings. If an individual has years of low earnings or no earnings, Social Security may count those years to bring the total years to 35.
5. Those at Southwest Airlines may also want to consider how there hasn't always been cost-of-living adjustments (COLA) in Social Security benefits. Before 1975, increasing benefits required an act of Congress; now increases happen automatically, based on the Consumer Price Index. There was a COLA increase of 2.9% in 2019, but there was only an increase of 2% in 2018.
6. Social Security is a major source of retirement income for 67% of current retirees, including those at Southwest Airlines.
7. Social Security benefits are subject to federal income taxes — but it wasn’t always that way. In 1983, Amendments to the Social Security Act made benefits taxable, starting with the 1984 tax year.
8. Social Security recipients received a single lump-sum payment from 1937 until 1940. One-time payments were considered “payback” to those people who contributed to the program. Social Security administrators believed these people would not participate long enough to be vested for monthly benefits.

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9. In January 1937, Earnest Ackerman became the first person in the U.S. to receive a Social Security benefit—a lump sum of 17 cents.

1. Social Security Administration, 2018; CIA World Factbook, 2018
2-5, 7-9. Social Security Administration, 2019
6. Employee Benefit Research Institute, 2018