Why More Hershey Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for Hershey:
The Hershey Company utilizes a comprehensive employee health plan primarily administered by Aetna. This partnership allows Hershey employees and their families access to a wide range of healthcare services, focusing on preventive care, wellness programs, and comprehensive coverage.
Healthcare Cost Increases for Hershey in 2026:
In 2026, Hershey and its employees may face significant increases in healthcare costs, reflecting broader trends within the healthcare landscape. With anticipated ACA premium hikes, many enrollees could see their out-of-pocket costs surge by over 75% due to the potential expiration of enhanced federal premium subsidies. Factors such as rising medical costs, increased utilization of services, and aggressive rate adjustments from insurers contribute to this impending financial pressure, compelling individuals and families to reassess their healthcare choices and budgeting strategies for the upcoming year.
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'Hershey 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.
'Hershey 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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Hershey 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 Hershey 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 Hershey 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 Hershey 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 Hershey.
📞 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 Hershey 401(k) plan?
The Hershey 401(k) plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or post-tax basis.
How does Hershey match employee contributions to the 401(k) plan?
Hershey offers a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions, up to a certain limit.
When can employees at Hershey enroll in the 401(k) plan?
Employees at Hershey can enroll in the 401(k) plan during their initial onboarding period or during specific open enrollment periods throughout the year.
What investment options are available in Hershey's 401(k) plan?
Hershey's 401(k) plan provides a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their retirement savings.
Can employees at Hershey take loans against their 401(k) savings?
Yes, Hershey allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.
What is the vesting schedule for Hershey's 401(k) matching contributions?
The vesting schedule for Hershey's 401(k) matching contributions typically follows a graduated schedule, meaning employees earn ownership of the match over a specified period of service.
How can Hershey employees access their 401(k) account information?
Hershey employees can access their 401(k) account information through the company's employee benefits portal or by contacting the plan administrator.
What happens to a Hershey employee's 401(k) if they leave the company?
If a Hershey employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Hershey plan if eligible.
Are there any fees associated with Hershey's 401(k) plan?
Yes, there may be fees associated with Hershey's 401(k) plan, such as administrative fees or investment management fees, which are disclosed in the plan documents.
How does Hershey educate employees about the 401(k) plan?
Hershey provides educational resources, workshops, and one-on-one consultations to help employees understand their 401(k) options and make informed decisions.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Hershey Employee Pension Plan:
Name of Plan: Hershey Company Pension Plan.
Pension Formula: Hershey's pension formula typically involves a defined benefit formula based on years of service and final average salary. However, specific details about the formula can be complex and may require accessing detailed plan documents.
Years of Service and Age Qualification: Generally, eligibility for the pension plan requires a certain number of years of service and reaching a specific age. The details can vary depending on the plan's provisions for different employee groups.
Qualification Criteria: Typically, employees must reach a specific age (often 55 or older) and have a minimum number of years of service (such as 5 or 10 years) to qualify for full pension benefits.
Hershey 401(k) Plan:
Name of Plan: Hershey 401(k) Savings Plan.
Qualification for Plan: Employees are usually eligible to participate in the 401(k) plan from their date of hire. Contributions are made through payroll deductions, and Hershey may offer matching contributions based on the employee’s contribution rate.
Contribution Limits: The plan generally follows IRS limits for employee contributions and employer matching contributions.
Hershey announced a series of organizational changes aimed at streamlining operations and improving efficiency. This includes a reduction in workforce as part of a broader restructuring effort. The company stated that these measures are necessary to adapt to changing market conditions and to position itself for future growth. The layoffs and restructuring are a response to the current economic climate, which demands greater agility and cost management. Given the evolving economic and political landscape, staying informed about these changes is crucial for understanding their impact on the company's strategic direction and employee relations.
Stock Options: Hershey offers stock options as part of its employee compensation packages. The options are typically granted to senior executives and key employees based on performance metrics and tenure. (Source: Hershey 2022 Annual Report, p. 58)
RSUs: Restricted Stock Units are granted to employees as a form of long-term incentive. RSUs at Hershey are usually awarded to senior management and high-potential employees, vesting over a period of time. (Source: Hershey 2023 Proxy Statement, p. 34)
Eligibility: Hershey's stock options and RSUs are generally available to senior executives, directors, and sometimes high-performing employees. These incentives are designed to align employee interests with company performance. (Source: Hershey 2024 Form 10-K, p. 45)
Employee Reviews: Employees have noted positive aspects of Hershey’s health benefits, including the comprehensive nature of their health coverage and wellness programs. However, there have been occasional comments about the high costs associated with some of the plans.
Recent Changes: There has been no significant news about major changes to Hershey’s health benefits from employee reviews on Glassdoor.
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