Why More McCormick Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for McCormick:
McCormick & Company primarily provides its employees with health insurance through various insurers, including a selection of major national providers such as UnitedHealthcare, Anthem, and Cigna. These partnerships are aimed at offering comprehensive healthcare coverage tailored to the needs of their workforce.
Potential Healthcare Cost Increases in 2026:
In 2026, McCormick may face significant increases in healthcare costs due to escalating premiums in the Affordable Care Act (ACA) marketplace. Experts anticipate that some states will see premium hikes surpassing 60%, driven by a combination of rising medical costs, the potential loss of enhanced federal premium subsidies, and aggressive rate actions from leading insurers. If these trends continue unmitigated, many employees could experience a staggering rise in their out-of-pocket healthcare expenses, making it crucial for McCormick to strategize on how to manage these impending challenges effectively.
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'McCormick 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.
'McCormick 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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McCormick 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 McCormick 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 McCormick 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 McCormick 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 McCormick.
📞 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 McCormick's 401(k) plan?
McCormick's 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 after-tax basis.
How can I enroll in McCormick's 401(k) plan?
Employees can enroll in McCormick's 401(k) plan by completing the enrollment process through the employee benefits portal or by contacting the HR department for assistance.
Does McCormick match employee contributions to the 401(k) plan?
Yes, McCormick offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.
What is the vesting schedule for McCormick's 401(k) matching contributions?
McCormick has a vesting schedule that outlines how long employees must work at the company to fully own the matching contributions made to their 401(k) accounts.
Can I change my contribution percentage to McCormick's 401(k) plan?
Yes, employees can change their contribution percentage to McCormick's 401(k) plan at any time, typically through the employee benefits portal.
What investment options are available in McCormick's 401(k) plan?
McCormick's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.
How often can I make changes to my investments in McCormick's 401(k) plan?
Employees can typically make changes to their investment allocations in McCormick's 401(k) plan on a quarterly basis or as specified in the plan documents.
Is there a loan option available in McCormick's 401(k) plan?
Yes, McCormick's 401(k) plan may allow employees to take loans against their account balance, subject to certain terms and conditions.
What happens to my 401(k) plan if I leave McCormick?
If you leave McCormick, you have several options for your 401(k) plan, including rolling it over to an IRA or a new employer's plan, cashing it out, or leaving it in the McCormick plan if permitted.
Are there any fees associated with McCormick's 401(k) plan?
Yes, there may be administrative and investment fees associated with McCormick's 401(k) plan, which are disclosed in the plan documents.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
McCormick's primary pension plan is the "McCormick & Company, Inc. Pension Plan."
Years of Service and Age Qualification:
Employees generally need a minimum of 5 years of service to qualify for benefits.
The typical age qualification for full benefits is 65, although early retirement options may be available with reduced benefits.
Pension Formula:
The pension formula is generally based on years of service and average salary during the highest earning years, though specific formulas may vary by plan specifics and employee tenure.
McCormick offers a 401(k) plan named the "McCormick & Company, Inc. 401(k) Plan."
Qualifications for 401(k) Plan:
Eligibility is typically available to employees after completing 30 days of service.
Employees can contribute a portion of their salary to the 401(k) plan and may receive company match contributions based on the plan's terms.
Layoffs and Restructuring: In early 2024, McCormick announced a significant restructuring plan aimed at streamlining operations and improving efficiency. This includes the elimination of approximately 1,000 jobs globally, which represents around 5% of its workforce. The company cited the need to adapt to changing market conditions and enhance its competitiveness in the industry. This move is crucial to monitor due to its impact on employees and the broader implications for the food industry. The current economic climate, characterized by inflation and shifting consumer behavior, underscores the importance of understanding such corporate strategies and their long-term effects.
Company Benefits and 401k Changes: Alongside the layoffs, McCormick is revising its employee benefits package, including adjustments to its 401k matching contributions. The company is reducing its 401k match from 6% to 4% and modifying healthcare benefits to reduce costs. These changes are part of a broader effort to control expenses amid economic uncertainty. It is essential to stay informed about these developments, as they reflect broader trends in corporate benefits adjustments driven by the current economic, investment, and tax environment. Understanding these changes can help employees better prepare for their financial futures.
McCormick & Company offers stock options and RSUs as part of their compensation package. For 2022, eligible employees include senior executives and other high-level employees based on their performance and role. McCormick uses acronyms like SOP (Stock Option Plan) and RSU (Restricted Stock Unit) in their documentation.
Healthcare Plans: McCormick offers a variety of healthcare plans including medical, dental, and vision insurance. They have multiple plan options to cater to different needs, such as PPO and HMO plans.
Benefits Overview: McCormick provides comprehensive coverage with preventive care, prescription drug benefits, and wellness programs. They also have a telemedicine option and employee assistance programs (EAP).
Recent Updates: The company has been updating its benefits to include more mental health resources and virtual care services.
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