Why More BorgWarner Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for BorgWarner
BorgWarner offers health insurance coverage to its employees, but specific provider details can vary by location and plan. Typically, they provide options that may include large health insurance networks like Blue Cross Blue Shield or Cigna, as well as other regional insurers depending on the geographic area. Employees should check with their HR department for the precise providers available to them under BorgWarner's health plans.
Projected Healthcare Cost Increases for BorgWarner Employees in 2026
In 2026, BorgWarner employees are likely to face significant healthcare cost increases as many factors converge to drive premiums higher. A report indicates that with the anticipated expiration of enhanced ACA federal subsidies, rising medical expenses-especially around specialty medications-and insurer rate hikes could see out-of-pocket premium costs soaring by as much as 75% for many individuals. Coupled with employers' plans to raise deductibles and out-of-pocket maximums to manage rising expenses, this could leave employees grappling with the financial implications of their healthcare coverage. Therefore, it is essential for BorgWarner employees to carefully review their health benefits and strategize to mitigate these rising costs.
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'BorgWarner 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.
'BorgWarner 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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BorgWarner 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 BorgWarner 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 BorgWarner 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 BorgWarner 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 BorgWarner.
📞 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 BorgWarner?
The 401(k) plan at BorgWarner is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.
How does BorgWarner match employee contributions to the 401(k) plan?
BorgWarner offers a matching contribution to the 401(k) plan, which means they will match a percentage of the employee's contributions up to a certain limit.
Can employees at BorgWarner contribute to their 401(k) plan through payroll deductions?
Yes, employees at BorgWarner can contribute to their 401(k) plan through automatic payroll deductions, making it easy to save for retirement.
What is the eligibility requirement for BorgWarner's 401(k) plan?
Employees become eligible to participate in BorgWarner's 401(k) plan after completing a specified period of service, which is typically outlined in the plan documents.
Does BorgWarner offer a Roth 401(k) option?
Yes, BorgWarner provides a Roth 401(k) option that allows employees to contribute after-tax dollars, with the potential for tax-free withdrawals in retirement.
How can employees at BorgWarner access their 401(k) account information?
Employees can access their 401(k) account information through the designated online portal provided by BorgWarner's plan administrator.
What investment options are available in BorgWarner's 401(k) plan?
BorgWarner's 401(k) plan typically offers a range of investment options, including mutual funds, target-date funds, and possibly company stock.
Can employees at BorgWarner take loans against their 401(k) savings?
Yes, BorgWarner allows employees to take loans against their 401(k) savings, subject to certain conditions and limits set by the plan.
What happens to my BorgWarner 401(k) if I leave the company?
If you leave BorgWarner, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the BorgWarner plan if permitted.
Is there a vesting schedule for BorgWarner's 401(k) matching contributions?
Yes, BorgWarner has a vesting schedule for matching contributions, meaning employees must work for the company for a certain period to fully own those contributions.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
BorgWarner announced a major restructuring initiative in Q2 2024, including significant layoffs affecting approximately 10% of their workforce. The company is also modifying its pension plan, shifting from defined benefit to defined contribution schemes for new employees. Additionally, changes are being made to their 401(k) matching contributions.
For more information you can reach the plan administrator for BorgWarner at 3850 Hamlin Rd Auburn Hills, MI 48326; or by calling them at +1 248-754-9200.
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