Why More Carter's Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for Carter's
Carter's, a well-known children's apparel company, primarily utilizes Anthem Blue Cross Blue Shield as its healthcare provider. This partnership allows employees to access a range of health benefits including medical, dental, and vision coverage.
Potential Healthcare Cost Increases in 2026
As 2026 approaches, employees at Carter's should brace for significant rises in healthcare costs. A reported trend indicates that many large employers, including Carter's, are likely to increase deductibles and out-of-pocket maximums in response to soaring healthcare expenses, heavily influenced by anticipated double-digit premium hikes in the ACA marketplace. Without the renewal of enhanced federal subsidies, workers could see their premiums spike by over 75%, compounding the financial burden already tied to rising medical costs driven by inflation and escalating prescription drug prices. Preparing for these adjustments now by reviewing benefits and optimizing healthcare strategies will be crucial for mitigating these potential increases.
Click here to learn more
'Carter's 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.
'Carter's 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
Carter's 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 Carter's 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 Carter's 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 Carter's 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 Carter's.
📞 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 Carter's offer to its employees?
Carter's offers a 401(k) retirement savings plan to its employees.
Is participation in the 401(k) plan at Carter's mandatory?
Participation in Carter's 401(k) plan is voluntary for employees.
What is the eligibility requirement for Carter's 401(k) plan?
Employees at Carter's are eligible to participate in the 401(k) plan after completing a specified period of employment, typically outlined in the employee handbook.
Does Carter's match employee contributions to the 401(k) plan?
Yes, Carter's offers a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.
How can employees at Carter's enroll in the 401(k) plan?
Employees can enroll in the Carter's 401(k) plan by completing the enrollment process through the company's benefits portal.
What types of investment options are available in Carter's 401(k) plan?
Carter's 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.
Can employees change their contribution percentage to the 401(k) plan at Carter's?
Yes, employees at Carter's can change their contribution percentage to the 401(k) plan at any time, subject to plan rules.
What is the vesting schedule for employer contributions in Carter's 401(k) plan?
The vesting schedule for employer contributions in Carter's 401(k) plan is detailed in the plan documents and typically requires employees to work for a certain number of years before fully owning the employer match.
When can employees at Carter's withdraw funds from their 401(k) accounts?
Employees can withdraw funds from their Carter's 401(k) accounts upon reaching retirement age, or under certain circumstances such as financial hardship, as defined by the plan.
Does Carter's provide educational resources for employees regarding their 401(k) plan?
Yes, Carter's provides educational resources and workshops to help employees understand their 401(k) plan options and investment strategies.
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 Adjustments: Carter's has updated its 401(k) plan to increase the company match from 4% to 5% of employee contributions. This adjustment aims to enhance employee retention and attract new talent amidst a competitive labor market. With ongoing economic uncertainties, this change helps employees save more for retirement and provides a stronger financial cushion.
Layoffs and Restructuring: In early 2023, Carter's announced a reduction in workforce as part of its restructuring plan aimed at streamlining operations and reducing costs. The company indicated that the layoffs were necessary to improve operational efficiency and align with shifting market demands.
Stock Options: Stock options typically give employees the right to purchase company shares at a set price after a certain period. Carter's stock options are generally offered to senior executives and key employees as part of their compensation package.
RSUs: Restricted Stock Units are company shares given to employees as part of their compensation, but with restrictions that typically lapse over time. RSUs at Carter's are usually provided to a broader group of employees including managers and senior-level staff.
Specific Information by Year
Recent Employee Healthcare News: Summarize any recent news affecting employee healthcare at Carter's.
Research Sources
Official Website: Look for health benefits information in the company's careers section or employee resources area.
News Websites: Search for recent articles or press releases related to Carter's employee health benefits.
Industry Reports: Check industry-specific reports or news platforms for relevant updates.
HR and Benefits Sites: Explore HR or benefits management websites for detailed insights.
Financial and Business News: Look into financial news platforms for any relevant updates on employee benefits.
Steps to Perform the Search
Official Website: Visit Carter’s official website and navigate to the careers or employee benefits section.
Google Search: Perform a Google search with keywords such as "Carter's health benefits 2022 2023 2024" and review the top results.
Industry-Specific Sources: Check HR and benefits management websites such as SHRM.org or BenefitsPro.com.
Business News Sites: Explore business news sites like Bloomberg or Reuters for relevant updates.
For more information you can reach the plan administrator for Carter's at 3438 Peachtree Rd. NE Atlanta, GA 30326; or by calling them at +1 404-745-2700.
-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)