Why More Louisiana-Pacific Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
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'Louisiana-Pacific 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.
'Louisiana-Pacific 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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Louisiana-Pacific 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 Louisiana-Pacific 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 Louisiana-Pacific 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 Louisiana-Pacific 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 Louisiana-Pacific.
📞 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 primary purpose of the Louisiana-Pacific 401(k) Savings Plan?
The primary purpose of the Louisiana-Pacific 401(k) Savings Plan is to help employees save for retirement through tax-deferred contributions.
Who is eligible to participate in the Louisiana-Pacific 401(k) Savings Plan?
All full-time employees of Louisiana-Pacific who meet the age and service requirements are eligible to participate in the 401(k) Savings Plan.
How can Louisiana-Pacific employees enroll in the 401(k) Savings Plan?
Louisiana-Pacific employees can enroll in the 401(k) Savings Plan by completing the enrollment form available through the company’s HR portal.
Does Louisiana-Pacific offer a company match for 401(k) contributions?
Yes, Louisiana-Pacific offers a company match for employee contributions to the 401(k) Savings Plan, subject to specific terms and conditions.
What types of contributions can employees make to the Louisiana-Pacific 401(k) Savings Plan?
Employees can make pre-tax and, in some cases, after-tax contributions to the Louisiana-Pacific 401(k) Savings Plan.
Are there any limits on how much I can contribute to the Louisiana-Pacific 401(k) Savings Plan each year?
Yes, the IRS sets annual contribution limits for 401(k) plans, and Louisiana-Pacific adheres to these limits.
How often can Louisiana-Pacific employees change their contribution amounts?
Louisiana-Pacific employees can change their contribution amounts at any time, subject to the plan's rules.
What investment options are available in the Louisiana-Pacific 401(k) Savings Plan?
The Louisiana-Pacific 401(k) Savings Plan offers a variety of investment options, including mutual funds and target-date funds.
Can Louisiana-Pacific employees take loans against their 401(k) savings?
Yes, Louisiana-Pacific allows employees to take loans against their 401(k) savings, subject to specific plan provisions.
What happens to my Louisiana-Pacific 401(k) savings if I leave the company?
If you leave Louisiana-Pacific, you can choose to leave your savings in the plan, roll them over to another qualified plan, or withdraw the funds, subject to tax implications.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Name of the Plan: Louisiana-Pacific Pension Plan.
Pension Formula: The plan uses a traditional defined benefit formula, which is calculated based on years of service and average compensation.
Years of Service Requirement: Employees generally need to accumulate a minimum of five years of service to be vested.
Age Qualification: The typical retirement age is 65, but early retirement options are available starting at age 55 with reduced benefits.
Company Acronym and Terminology: The pension plan is commonly referred to as "LP Pension Plan" within internal documentation.
Louisiana-Pacific 401(k) Plan:
Name of the 401(k) Plan: LP 401(k) Savings Plan.
Eligibility: Employees are eligible to participate from the first day of employment.
Company Matching Contributions: Louisiana-Pacific provides a matching contribution, typically matching 50% of the employee's contributions up to 6% of their salary.
Vesting: Employees are fully vested in their contributions immediately, while company contributions vest after three years of service.
Company Terminology: Internally, this is referred to as the "LP 401(k)" and includes standard financial terms like "deferral" and "matching."
Restructuring and Layoffs: In 2024, Louisiana-Pacific Corporation (LP) announced it would cut back on operations at five North American mills due to low demand and product pricing (FloorDaily). This restructuring is expected to lead to minimal layoffs at the affected facilities. LP also announced mill closures and production curtailments across Texas, Georgia, and Wisconsin (Go Layoffs). This news is critical to address because of the ongoing economic uncertainties, which have been exacerbated by rising inflation and fluctuating demand in the construction materials sector. Companies in this industry must remain flexible to avoid significant financial impacts while protecting their workforce and ensuring long-term viability. Given the current political and tax environment, such restructuring decisions can have far-reaching effects on both employees and the local economy, making it essential to monitor developments closely.
Louisiana-Pacific (LP) Stock Options and Restricted Stock Units (RSU) Overview
Louisiana-Pacific Corporation (LP) offers its employees stock options and RSUs through the 2022 Omnibus Stock Award Plan. The RSU award grants employees the right to receive company shares upon vesting, typically over a period of three years. Louisiana-Pacific employees eligible for these awards include senior executives and other high-performing employees. Under this plan, RSUs are awarded at the discretion of the company's administrator, allowing for a retention of shares to satisfy tax obligations at the fair market value of the shares on the date of delivery (Louisiana-Pacific Corporation) (Justia).
In 2022, LP's stock options and RSUs were available to both management and key employees as part of a broader incentive structure to align employees' interests with shareholders. The eligibility criteria were expanded in 2023, allowing more mid-level employees to participate in the equity compensation program. By 2024, Louisiana-Pacific continued to refine its compensation plan by adjusting vesting periods and tax treatment options to comply with updated federal regulations (Louisiana-Pacific Corporation) (markets.businessinsider.com).
Louisiana-Pacific offers stock options and RSUs as part of its incentive-based compensation, ensuring employees can benefit from the company's financial success. These stock options are generally granted with a fixed exercise price, while RSUs vest over time without requiring any purchase from employees (Justia) (Louisiana-Pacific Corporation).
Louisiana-Pacific Corporation (LP) offers a comprehensive range of healthcare benefits to its employees, designed to support their well-being while also being competitive in the industry. The company provides full-time and part-time employees with medical, dental, and vision coverage, including a wellness program that incentivizes healthy behavior. These benefits extend to dependents and domestic partners, ensuring broad support for employee families. In 2023, LP enhanced its healthcare options to include flexible telemedicine services and an expanded mental health program, reflecting growing trends in the industry toward supporting both physical and mental well-being. With healthcare costs rising significantly, LP's focus on a holistic benefits package helps mitigate some of the economic pressures felt by employees in today’s challenging economic climate (LP Building Solutions) (Louisiana Health Connect).
In response to the broader economic and political environment, LP has also adapted its healthcare offerings to account for inflationary pressures on healthcare costs. For example, in 2024, the company implemented measures to absorb part of the projected 5.4% increase in healthcare costs, preventing significant cost burdens from falling on employees. Additionally, LP's safety and health initiatives, as outlined in their sustainability reports, have been crucial in maintaining workplace health, particularly as global health risks have increased. The company’s decision to prioritize safety training and offer preventative health resources exemplifies its proactive approach in a politically charged healthcare landscape. These efforts help ensure that LP remains an attractive employer, retaining talent amidst economic uncertainty (LP Building Solutions) (Louisiana Health Connect).
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