New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Why More Pfizer Employees Are Considering Social Security Early â€” And How Medicare Changes Play a Role

Healthcare Provider Update: Healthcare Provider for Pfizer: Pfizer does not operate as a traditional healthcare provider, but it is a major pharmaceutical company that provides a wide range of medications and vaccines. For healthcare services, Pfizer collaborates with various healthcare organizations, insurers, and providers to distribute its products and support health initiatives. Potential Healthcare Cost Increases in 2026: The healthcare landscape is bracing for significant cost escalations in 2026, driven by a convergence of factors, including the anticipated expiration of enhanced ACA premium subsidies and rising medical costs. Insurers are expected to request steep premium increases, some exceeding 60%, as they cope with surging hospital and prescription drug expenses. Moreover, without congressional action to extend these subsidies, many consumers could see their out-of-pocket costs rise dramatically-some estimates suggest increases of over 75%-making access to affordable healthcare a critical concern for millions. Click here to learn more

'Pfizer 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.

'Pfizer 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 Pfizer 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 Pfizer 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 Pfizer 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 Pfizer 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 Pfizer.

ðŸ“ž 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.

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Sources:

1. CNBC. ' Does it still make sense to wait to claim Social Security retirement benefits? ' by Lorie Konish. 29 Apr. 2025.
2. U.S. Bureau of Labor Statistics. ' 15 percent of private industry workers had access to a defined benefit retirement plan ,' 10 Apr. 2024.
3. Kaiser Family Foundation. “ Health Costs Consume a Large Portion of Income for Millions of People with Medicare ,' by Ochieng, Nancy; Juliette Cubanski; Tricia Neuman; Anthony Damico. 21 Aug. 2025.
Other Resources:
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.

How does Pfizer, Inc. approach the management of its Consolidated Pension Plan to ensure the financial stability and long-term sustainability of the benefits promised to its employees? Furthermore, what strategies does Pfizer, Inc. employ to communicate the importance of this plan to its workforce, and how does it equip employees with the knowledge needed to understand their benefits effectively?

Pfizer, Inc. manages its Consolidated Pension Plan with a strong focus on financial stability and long-term sustainability by working with key financial partners like Fidelity Investments for recordkeeping and Northern Trust Company for trustee services(Pfizer_3-9-2015_Pfizer_…). The company ensures proper investment strategies and regular reviews to meet the pension obligations and maintain the health of the fund. To communicate the importance of the pension plan, Pfizer uses various channels to educate employees about their benefits, including workshops, internal communication, and retirement planning tools, ensuring that all employees have a clear understanding of their benefits.

In what ways does Pfizer, Inc. ensure compliance with the latest IRS regulations concerning pension plans, and how frequently does it review and update its pension plan policies to align with changing laws? Additionally, what role does the Pension Plan Administrator play in overseeing these compliance efforts within Pfizer, Inc.?

Pfizer, Inc. stays in compliance with IRS regulations regarding pension plans by frequently reviewing and updating its policies to reflect legal changes. The Pension Plan Administrator at Pfizer plays a vital role in overseeing compliance efforts, ensuring that the company adheres to evolving tax laws and regulations. Regular internal audits and legal consultations help Pfizer maintain the necessary compliance measures(Pfizer_3-9-2015_Pfizer_…).

How does Pfizer, Inc. determine the eligibility criteria for employees to participate in its defined benefit pension plan, and what factors are considered when calculating pension benefits? Furthermore, how does Pfizer, Inc. ensure transparency in communicating these criteria and calculations to its employees?

Eligibility for Pfizer’s defined benefit pension plan is determined by factors such as years of service and employee classification. When calculating pension benefits, Pfizer considers age, salary history, and service duration. The company ensures transparency by providing clear documentation and personalized benefit statements to employees, helping them understand the criteria and calculations affecting their retirement benefits(Pfizer_3-9-2015_Pfizer_…).

What are the potential tax implications for employees of Pfizer, Inc. who choose to retire early and how does this intersect with the company's pension plan offerings? Additionally, what resources does Pfizer, Inc. provide to assist employees in understanding their options and the long-term impact of early retirement on their pension plans?

Employees of Pfizer, Inc. who opt for early retirement may face tax implications such as penalties for early withdrawals or reduced pension payouts. Pfizer provides educational resources, including financial planning tools and access to retirement advisors, to help employees navigate the long-term impacts of early retirement decisions. These resources ensure employees can make informed decisions about their retirement plans(Pfizer_3-9-2015_Pfizer_…).

Can you outline the process that Pfizer, Inc. has in place for employees to appeal decisions related to their pension benefits? What steps are involved, and how does Pfizer, Inc. ensure that this process is accessible and fair to all employees who may wish to challenge a decision regarding their pensions?

Pfizer, Inc. offers a structured process for employees to appeal pension benefit decisions. This process includes filing a formal complaint, undergoing a review by the Benefits Administration team, and potentially escalating to higher management if needed. Pfizer ensures this process is accessible and fair, providing employees with clear guidance on how to challenge pension-related decisions(Pfizer_3-9-2015_Pfizer_…).

How does Pfizer, Inc. integrate career counseling and financial planning resources into the retirement process for employees? Furthermore, what initiatives does Pfizer, Inc. undertake to educate its employees about preparing for retirement beyond the financial aspects, ensuring a holistic approach to the transition into retirement?

Pfizer integrates career counseling and financial planning into its retirement process by offering resources such as access to financial advisors, retirement workshops, and online tools. These initiatives help employees plan for retirement comprehensively, covering not just financial aspects but also lifestyle adjustments and post-retirement career considerations(Pfizer_3-9-2015_Pfizer_…).

What specific benefits does Pfizer, Inc. offer to employees who are nearing retirement age, and how do these benefits differ from those provided to younger employees? Additionally, how does Pfizer, Inc. communicate and promote these benefits to ensure that eligible employees take full advantage of what is available to them as they approach retirement?

Pfizer, Inc. provides specific benefits for employees nearing retirement, such as catch-up contributions to retirement plans and access to enhanced financial counseling. These benefits are communicated through targeted retirement seminars and direct communications to ensure that eligible employees understand the advantages available to them as they approach retirement(Pfizer_3-9-2015_Pfizer_…).

How does Pfizer, Inc. address issues related to underfunding of its pension plan, if applicable, and what measures are taken to mitigate potential risks? What plans does Pfizer, Inc. have in place to ensure that it can meet its pension obligations even in challenging financial environments?

If Pfizer, Inc. faces any underfunding issues in its pension plan, the company takes proactive steps to address the problem by increasing contributions or adjusting plan investment strategies. Pfizer has contingency plans in place to ensure it can meet pension obligations even in financially challenging environments(Pfizer_3-9-2015_Pfizer_…).

In 2024, what key changes to the pension plan within Pfizer, Inc. can employees expect, particularly concerning contribution limits and retirement planning strategies? How does Pfizer, Inc. communicate these changes to its employees to ensure that they are well-informed and able to adjust their retirement planning effectively?

In 2024, Pfizer employees can expect updates to the pension plan concerning contribution limits and retirement strategies, in line with IRS changes. The company communicates these updates through newsletters, online portals, and direct emails to ensure employees stay informed and can adjust their retirement planning accordingly(Pfizer_3-9-2015_Pfizer_…).

If employees at Pfizer, Inc. have questions about their retirement benefits, what is the best way for them to contact the company? Are there specific resources, such as a dedicated help desk, online portal, or contact persons within the Benefits Administration team, that Pfizer, Inc. recommends for providing assistance and further information regarding retirement benefits?

Employees at Pfizer, Inc. who have questions about their retirement benefits can contact the Benefits Administration team directly at the contact details provided. Additionally, Pfizer offers online portals and dedicated help desks, making it easy for employees to get assistance with any retirement-related inquiries(Pfizer_3-9-2015_Pfizer_…).

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Pfizer provides both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan includes a cash balance component, where benefits grow based on years of service and compensation, with interest credits added annually. The 401(k) plan offers company matching contributions and various investment options such as target-date funds and mutual funds. Pfizer also provides financial planning resources and tools to help employees manage their retirement savings.

Pfizer provides both RSUs and stock options to employees. RSUs vest over time, providing shares, while stock options allow employees to buy shares at a set price.