Why More Amazon Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Amazon has partnered with One Medical as its primary healthcare provider. One Medical offers a membership model aimed at providing accessible and efficient healthcare, including virtual visits and same-day appointments.
As we approach 2026, healthcare costs are projected to rise significantly, a trend attributed to various factors including the potential expiration of enhanced federal premium subsidies associated with the Affordable Care Act (ACA). Many states are bracing for steep premium hikes, with some individual markets seeing increases exceeding 60%, which could push out-of-pocket costs for consumers up by more than 75%. This perfect storm of escalating medical expenses, combined with insurers pursuing aggressive rate hikes, underscores the urgent need for consumers to prepare for the financial implications of rising healthcare costs in the coming year.
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'Amazon 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.
'Amazon 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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Amazon 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 Amazon 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 Amazon 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 Amazon 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 Amazon.
📞 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 type of retirement savings plan does Amazon offer to its employees?
Amazon offers a 401(k) retirement savings plan to its employees.
Does Amazon match employee contributions to the 401(k) plan?
Yes, Amazon provides a matching contribution for employee contributions to the 401(k) plan, up to a certain percentage.
How can Amazon employees enroll in the 401(k) plan?
Amazon employees can enroll in the 401(k) plan through the employee benefits portal after meeting eligibility requirements.
What is the eligibility requirement for Amazon employees to participate in the 401(k) plan?
Typically, Amazon employees are eligible to participate in the 401(k) plan after completing a specified period of service.
What investment options are available in Amazon's 401(k) plan?
Amazon's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.
Can Amazon employees change their contribution percentage to the 401(k) plan?
Yes, Amazon employees can change their contribution percentage at any time through the employee benefits portal.
What is the maximum contribution limit for Amazon employees participating in the 401(k) plan?
The maximum contribution limit for Amazon employees is set by the IRS and may change annually; employees should check the current limits.
Does Amazon allow employees to take loans against their 401(k) savings?
Yes, Amazon allows employees to take loans against their 401(k) savings, subject to certain terms and conditions.
What happens to an Amazon employee's 401(k) if they leave the company?
If an Amazon employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, leave it with Amazon, or cash it out.
Are there any fees associated with Amazon's 401(k) plan?
Yes, there may be fees associated with managing the investments within Amazon's 401(k) plan, which are disclosed in the plan documents.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
401(k) plan with company match, various investment options and financial planning resources.
Amazon announced its largest layoffs in company history, affecting over 27,000 employees in 2023-2024. This includes 18,000 roles cut in January 2023 and an additional 9,000 announced in March 2023. The layoffs impact various divisions, including Amazon Web Services (AWS), People Experience and Technology (PXT), advertising, and Twitch. These decisions are part of Amazon's efforts to streamline operations and cut costs amidst declining retail sales and economic uncertainty. Amazon CEO Andy Jassy emphasized the need to be leaner while continuing to invest in key long-term customer experiences. Employees affected by the layoffs are being provided with separation payments, transitional health insurance benefits, and external job placement support.
Amazon.com Inc. provides stock options (SOs) and Restricted Stock Units (RSUs) as part of its compensation. SOs allow employees to buy stock at a set price after vesting. RSUs vest over four years, with a specific schedule: 5% after the first year, 15% after the second, and 20% every six months for the remaining two years. In 2022, Amazon emphasized performance-based RSUs. In 2023, Amazon adjusted equity strategies to align with market conditions. By 2024, Amazon expanded RSU programs to include more employees. Executives, management, and broader employees are eligible for these plans. [Source: Justia, 2022 Employee Stock Plan; MyStockOptions; Consilio Wealth Advisors]
Amazon offers a comprehensive and competitive benefits package aimed at supporting the diverse needs of its employees. For 2023, Amazon provided a range of healthcare options, including medical, dental, and vision plans that begin on the first day of employment. These plans include Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to help employees manage out-of-pocket healthcare expenses. Amazon also expanded its mental health resources, offering free counseling sessions, 24/7 virtual mental health support through the Twill app, and specialized support for children's mental health through a partnership with Brightline. These enhancements underscore Amazon’s commitment to supporting the well-being of its workforce. In 2024, Amazon continues to build on its robust benefits offerings. The company has introduced additional wellness programs, including emergency savings funds and financial assistance programs, to help employees prepare for unexpected expenses. Moreover, Amazon has improved its paid parental leave policies, providing up to 20 weeks of paid leave for birth parents and six weeks for eligible supporting parents. This holistic approach to employee benefits is particularly important in today’s economic and political climate, where healthcare affordability and access are critical issues. By continually updating its benefits package, Amazon ensures its employees are well-supported in maintaining their health and financial security.
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