Why More American Airlines Group Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for American Airlines Group
American Airlines Group primarily offers health insurance benefits through various large national insurers, including Aetna and UnitedHealthcare. This ensures coverage for their employees across a variety of healthcare needs.
Potential Healthcare Cost Increases in 2026
Healthcare costs for American Airlines Group are poised to intensify in 2026, largely driven by record increases in Affordable Care Act (ACA) premiums. Insurers exhibit a strong trend of escalating rates, with anticipated hikes averaging around 18%, and in some regions, exceeding 60%. The looming expiration of enhanced federal premium subsidies is a significant factor, as it may push out-of-pocket premiums for many employees up by over 75%. Consequently, the financial strain of rising medical costs and decreased subsidy support could severely impact both employees' budgets and the employer's approach to providing competitive benefits.
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'American Airlines Group 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.
'American Airlines Group 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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American Airlines Group 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 American Airlines Group 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 American Airlines Group 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 American Airlines Group 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 American Airlines Group.
📞 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 American Airlines Group?
The 401(k) plan offered by American Airlines Group is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.
How can I enroll in the 401(k) plan at American Airlines Group?
You can enroll in the 401(k) plan at American Airlines Group by accessing the employee benefits portal and following the enrollment instructions provided.
Does American Airlines Group offer matching contributions to the 401(k) plan?
Yes, American Airlines Group offers matching contributions to the 401(k) plan, helping employees maximize their retirement savings.
What is the vesting schedule for the 401(k) matching contributions at American Airlines Group?
The vesting schedule for matching contributions at American Airlines Group typically follows a graded vesting schedule, which means you gain ownership of the employer contributions over a period of time.
Can I change my contribution percentage to the 401(k) plan at American Airlines Group?
Yes, you can change your contribution percentage to the 401(k) plan at American Airlines Group at any time through the employee benefits portal.
What investment options are available in the American Airlines Group 401(k) plan?
The American Airlines Group 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.
Is there a loan option available through the 401(k) plan at American Airlines Group?
Yes, American Airlines Group allows employees to take loans against their 401(k) savings, subject to certain terms and conditions.
What happens to my 401(k) plan if I leave American Airlines Group?
If you leave American Airlines Group, you can choose to roll over your 401(k) balance to another retirement account, cash it out, or leave it in the plan if allowed.
At what age can I start withdrawing from my 401(k) plan at American Airlines Group without penalties?
You can start withdrawing from your 401(k) plan at American Airlines Group without penalties at age 59½, provided you meet other plan requirements.
Does American Airlines Group offer financial education resources for employees regarding their 401(k) plan?
Yes, American Airlines Group provides financial education resources, including workshops and online tools, to help employees understand their 401(k) plan options.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
American Airlines offers both a defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan includes a cash balance component, where benefits grow based on years of service and compensation, with interest credits added annually. The 401(k) plan features company matching contributions and various investment options such as target-date funds and mutual funds. American Airlines also provides financial planning resources and tools to help employees manage their retirement savings.
American Airlines offers a 401(k) plan with up to a 5.5% employer match and comprehensive healthcare benefits. The company announced the layoff of 656 employees in its customer support department as part of a reorganization.
American Airlines offers RSUs that vest over time, giving employees shares of the company. They also provide stock options, allowing employees to purchase shares at a fixed price.
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For more information you can reach the plan administrator for American Airlines Group at 1 Skyview Drive Fort Worth, TX 76155; or by calling them at (817) 963-1234.
Further Information for American Airlines Group* Employees
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