Why More Apple Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Apple's healthcare provider is typically managed through its corporate employee benefits programs, including partnerships with major health insurance companies such as Aetna or UnitedHealthcare. This provides employees with access to comprehensive health care services tailored to a workforce predominantly engaged in technological innovation.
Looking ahead to 2026, anticipated increases in healthcare costs are becoming a pressing concern, particularly due to the looming expiration of enhanced premium subsidies under the Affordable Care Act (ACA). Insurers are forecasting premium hikes that could see costs rise over 60% in some regions, affecting nearly all policyholders. With medical expenses continuing to climb-driven largely by higher drug prices and treatment complexities-many consumers could face significant financial strain, as their out-of-pocket costs may increase by as much as 75% under current projections, emphasizing the importance of strategic planning for employees and employers alike.
Click here to learn more
'Apple 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.
'Apple 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.
1
And for those with an FRA of 66, the increase if one waits until age 70 is closer to 32%.
1
Apple 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,
2
affecting many households and Apple 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.
3
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 Apple 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 Apple 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 Apple.
📞 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 types of retirement savings plans does Apple offer to its employees?
Apple offers a 401(k) plan as part of its retirement savings options for employees.
How does Apple match employee contributions to the 401(k) plan?
Apple provides a matching contribution to the 401(k) plan, matching a percentage of employee contributions up to a certain limit.
Can Apple employees choose how to invest their 401(k) contributions?
Yes, Apple employees can select from a variety of investment options within the 401(k) plan to tailor their investment strategy.
What is the eligibility requirement for Apple employees to participate in the 401(k) plan?
Most Apple employees are eligible to participate in the 401(k) plan after completing a specified period of employment.
Does Apple offer any educational resources for employees to understand the 401(k) plan?
Yes, Apple provides educational resources and tools to help employees understand their 401(k) options and make informed decisions.
What is the vesting schedule for Apple’s 401(k) matching contributions?
Apple has a vesting schedule for matching contributions, which means employees must work for a certain period before they fully own the matched funds.
Are there any fees associated with Apple’s 401(k) plan?
Yes, there may be administrative fees associated with managing Apple’s 401(k) plan, which are disclosed in the plan documents.
Can Apple employees take loans against their 401(k) savings?
Yes, Apple allows employees to take loans against their 401(k) savings under certain conditions as outlined in the plan.
What happens to an Apple employee’s 401(k) account if they leave the company?
If an Apple employee leaves the company, they can choose to roll over their 401(k) account to another retirement account, cash it out, or keep it in the Apple plan if allowed.
Does Apple provide any financial planning services for retirement?
Yes, Apple offers access to financial planning services to help employees prepare for retirement and make the most of 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.
In 2024, several key changes impacting 401(k) plans due to the SECURE 2.0 Act have been implemented. Notably, Required Minimum Distributions (RMDs) for Roth 401(k) plans have been eliminated, aligning them with Roth IRAs, allowing greater flexibility in retirement planning. Additionally, emergency withdrawals up to $1,000 for unforeseen expenses are now permitted without the usual 10% penalty, promoting greater accessibility to funds in times of need. Finally, contribution limits have increased, with the cap for 401(k) contributions rising to $23,000, up from $22,500 in 2023, providing an opportunity for higher savings.
https://www.kiplinger.com/retirement/bipartisan-retirement-savings-package-in-massive-budget-bill
https://www.thrivent.com/insights/retirement-planning/secure-act-2-0-provisions-7-changes-in-2024
In 2024, Apple announced layoffs affecting over 700 employees, primarily due to the cancellation of its autonomous vehicle project, known as Project Titan, and its Micro-LED display project. These layoffs, which are Apple's largest since the pandemic, have impacted various offices and projects, reflecting the company's shift in strategic priorities and cost management efforts amidst ongoing financial and technological challenges. The layoffs also affect teams working on Siri data operations and other AI-related projects. Apple's strategic realignment includes investing more in AI and home robotics, aiming to enhance its competitive edge in these fields.
Apple Inc. offers stock options (SOs) and Restricted Stock Units (RSUs) through its equity compensation programs. SOs allow employees to purchase stock at a fixed price after vesting. RSUs convert to shares upon vesting, typically over four years. The 2022 Employee Stock Plan included performance-based RSUs. In 2023, Apple emphasized RSUs for retention, with executives receiving significant RSU packages. By 2024, Apple expanded RSU programs to more employees. Tim Cook received RSUs worth up to $114 million, vesting through 2025. Executives, management, and broader employees are eligible for these plans. [Source: Apple 2022 Employee Stock Plan, Justia, p. 1; Mariner, My Apple Stock; MacRumors]
Apple provides a robust healthcare benefits package designed to support the diverse needs of its employees. For 2023, Apple continued to offer comprehensive medical, dental, and vision plans that include a variety of options to ensure employees and their families are well-covered. These plans provide extensive coverage for preventive care, major medical services, and mental health support. Additionally, Apple offers flexible spending accounts (FSAs) and health savings accounts (HSAs), which allow employees to manage out-of-pocket healthcare expenses effectively. These benefits reflect Apple's commitment to maintaining the health and well-being of its workforce. In 2024, Apple introduced several enhancements to its benefits offerings to attract and retain employees in a competitive job market. Key improvements include increased paid leave and vacation benefits, with part-time workers now eligible for paid vacation time and all employees receiving up to 12 paid sick days annually. Apple also continues to provide wellness programs that include mental health resources and fitness incentives. These enhancements are particularly important given the current economic and political environment, where healthcare costs and employee well-being are significant concerns. By continuously updating its benefits package, Apple ensures its employees are supported both professionally and personally.
/General/General%207.png?width=1280&height=853&name=General%207.png)
-2.png?width=300&height=200&name=office-builing-main-lobby%20(52)-2.png)
.webp?width=300&height=200&name=office-builing-main-lobby%20(27).webp)
-2.png)
.webp)