Why More AECOM Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for AECOM
AECOM employees are primarily covered through its benefit partnership with UnitedHealthcare. This relationship provides comprehensive health insurance options to the workforce, including various plan structures designed to meet diverse healthcare needs.
Potential Healthcare Cost Increases in 2026
In 2026, AECOM employees may face substantial healthcare cost increases as many large companies, including AECOM, prepare to adjust their benefit structures in response to rising medical costs. The Affordable Care Act marketplace is projected to see premium hikes exceeding 60% in some states, primarily reflecting the loss of enhanced federal subsidies. This situation has the potential to significantly raise out-of-pocket expenses for employees as employers may shift more costs onto their workforce; over half are likely to increase deductibles or out-of-pocket limits. Employees need to strategically navigate their options and familiarize themselves with upcoming benefit changes to mitigate the impact of these financial pressures.
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'AECOM employees weighing when to file for Social Security should consider both current health care costs and long-term income needs, so they can stay adaptable as retirement unfolds.' — Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
'AECOM employees can benefit from thoughtfully coordinating Social Security timing with health care expenses so their retirement income stays aligned with their evolving needs over time.' — Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
How Social Security filing age affects retirement income.
How Medicare expenses factor into when retirees claim benefits.
Why emotional concerns are shifting filing behavior for many Americans.
Written by Wealth Enhancement advisors Kevin Landis, CPA and Wesley Boudreaux
Advisors in the retirement-income space have long suggested that retirees consider delaying filing for Social Security benefits. For those with a full retirement age (FRA) of 67, waiting until age 70 can result in monthly payments that are around 24% higher.
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And for those with an FRA of 66, the increase if one waits until age 70 is closer to 32%.
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AECOM employees nearing retirement often hear this same message.
However, new national data indicates a growing number of Americans plan to claim Social Security before age 70. Cost pressures and health care related issues are major influences in this trend.
The Retirees’ Reality
Today’s retirees face a very different environment than those in past decades, including less access to traditional pensions, rising health care costs, and mounting everyday living expenses. In the private sector, only about 15% of workers still have access to defined benefit pensions,
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affecting many households and AECOM employees.
According to retirement consultant Wesley Boudreaux, 'most retirees are not choosing to claim early for the sake of it.” Instead, rising medical and living costs are driving earlier benefit decisions because of cash flow pressures.
One major factor? Health care. Nearly 39% of out-of-pocket health care spending by Medicare beneficiaries was equivalent to Social Security payments received, on average, in 2022.
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Medicare Advantage: A Key Planning Factor
Additionally, shifts in Medicare Advantage plans have left many retirees unsure about upcoming costs. Benefit structures can vary significantly by year or by region, causing cost surprises that AECOM workers and their families may need to plan for.
“We are already seeing clients paying more for health care than expected,” said Kevin Landis, CPA. “When medical expenses rise, Social Security often becomes the first lever people pull to handle that burden.”
This is why coordinating Social Security filing decisions with Medicare coverage choices remains important, particularly when plans change annually.
“This is the intersection of Social Security and health care planning,” Landis adds. “Changes in one can influence the other.”
Emotional Considerations Also Matter
Money matters aren’t the only reason retirees claim earlier. Concerns about the future of Social Security have caused many to look for the emotional comfort of taking benefits sooner, including some AECOM workers preparing for retirement.
While benefits are expected to continue—even if trust fund reserves decline in the 2030s—worries about future payouts can play a role.
“It’s not just about math,” Boudreaux explains. “People want control and stability in retirement, even if that means receiving less over time.”
Finding the Right Approach for You
Whether filing early is a good fit depends a lot on health, cash flow needs, and longer-term retirement goals. Thoughtful planning helps maintain flexibility, rather than driving you to respond under pressure.
“The best approach balances today’s needs with what lies ahead,” Landis says. “And that begins with understanding how Medicare and Social Security interact.”
Need Help Reviewing Your Options?
The Retirement Group, a division of Wealth Enhancement, helps individuals evaluate Medicare electives, analyze Social Security filing alternatives, and design retirement income strategies based on personal goals—including guidance tailored to those employed by AECOM.
📞 Call (800) 900-5867 before your next enrollment period to schedule a Social Security & Health Care Review.
Work toward confidence in your long-term retirement income decisions.
About the Authors
Wesley Boudreaux and Kevin Landis, CPA, provide retirement income and tax planning guidance through Wealth Enhancement, helping people make informed choices about Social Security, Medicare, and financial well-being.
1. Social Security Administration.
When to Start Receiving Retirement Benefits: Publication No. 05-10147
. May 2024. U.S. Government Publishing Office, Washington D.C.
2. Topoleski, John J., Elizabeth A. Myers, and Sylvia L. Bryan.
Worker Participation in Employer-Sponsored Pensions: Data in Brief and Recent Trends (R43439)
. Congressional Research Service, 18 Sept. 2024.
3. Medicare Payment Advisory Commission.
Report to the Congress: Medicare Payment Policy – Chapter 11: The Medicare Advantage Program: Status Report
. Mar. 2025, medpac.gov/wp-content/uploads/2025/03/Mar25_Ch11_MedPAC_Report_To_Congress_SEC.pdf.
4. Board of Trustees, Social Security.
2025 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds
. 30 June 2025. U.S. Government Publishing Office, Washington D.C.
What is the 401(k) plan offered by AECOM?
AECOM offers a 401(k) plan that allows employees to save for retirement by contributing a portion of their salary on a pre-tax or after-tax basis.
How does AECOM match employee contributions to the 401(k) plan?
AECOM provides a matching contribution to the 401(k) plan, which helps employees increase their retirement savings.
What are the eligibility requirements for AECOM’s 401(k) plan?
Employees of AECOM are generally eligible to participate in the 401(k) plan after completing a specific period of service, typically within the first year of employment.
Can I change my contribution percentage to AECOM's 401(k) plan?
Yes, employees can change their contribution percentage to AECOM's 401(k) plan at any time, subject to certain guidelines.
What investment options are available in AECOM's 401(k) plan?
AECOM's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
How can I access my AECOM 401(k) account information?
Employees can access their AECOM 401(k) account information through the plan's online portal or by contacting the plan administrator.
What happens to my AECOM 401(k) if I leave the company?
If you leave AECOM, you can choose to roll over your 401(k) balance to another retirement account, leave it in the AECOM plan, or withdraw the funds, subject to tax implications.
Is there a loan option available through AECOM's 401(k) plan?
Yes, AECOM allows employees to take loans against their 401(k) balance under certain conditions.
How often can I change my investment allocations in AECOM's 401(k) plan?
Employees can change their investment allocations in AECOM's 401(k) plan as often as they wish, typically without restrictions.
Does AECOM offer financial education resources for 401(k) participants?
Yes, AECOM provides financial education resources and workshops to help employees make informed decisions about their 401(k) savings.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
This news is crucial due to the economic environment as companies streamline operations to enhance efficiency and shareholder value. The restructuring can lead to more robust financial performance, vital for investors. Additionally, share buybacks indicate confidence in financial stability, which is significant in the current volatile market conditions (AECOM Investors) (Los Angeles Business Journal).
For more information you can reach the plan administrator for AECOM at 300 South Grand Avenue Los Angeles, CA 90071; or by calling them at (213) 593-8000.
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