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Why More The Este Lauder Companies Inc. Employees Are Considering Social Security Early â€” And How Medicare Changes Play a Role

Healthcare Provider Update: Healthcare Provider for The Estee Lauder Companies Inc. The Estee Lauder Companies Inc. typically partners with large health insurance providers to offer employee health benefits. Some of the prevalent healthcare providers that may cater to Estee Lauder employees include UnitedHealthcare, Blue Cross Blue Shield, and Aetna, which provide a range of health plans and services encompassing medical, dental, and mental health coverage. Potential Healthcare Cost Increases in 2026 As we look ahead to 2026, significant healthcare cost increases are projected for many Americans, particularly those enrolled in Affordable Care Act (ACA) marketplace plans. Several factors contribute to this expected surge, including the looming expiration of enhanced premium subsidies and escalating medical costs. States are reporting premium hikes as high as 66%, with many of the largest insurers posting median increases around 20%. Notably, without congressional intervention to extend the premium tax credits, around 92% of enrollees could see their out-of-pocket costs rise by over 75%, putting adequate healthcare coverage out of reach for many. The combination of these elements suggests a challenging landscape for healthcare affordability moving into next year. Click here to learn more

'The Este Lauder Companies Inc. 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.

'The Este Lauder Companies Inc. 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 The Este Lauder Companies Inc. 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 The Este Lauder Companies Inc. 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 The Este Lauder Companies Inc. 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 The Este Lauder Companies Inc. 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 The Este Lauder Companies Inc..

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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Articles you may find interesting:

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.

What type of retirement savings plan does The Este Lauder Companies Inc. offer to its employees?

The Este Lauder Companies Inc. offers a 401(k) retirement savings plan to its employees.

How can employees of The Este Lauder Companies Inc. enroll in the 401(k) plan?

Employees of The Este Lauder Companies Inc. can enroll in the 401(k) plan through the company’s HR portal during the enrollment period or upon eligibility.

Does The Este Lauder Companies Inc. provide a company match for contributions made to the 401(k) plan?

Yes, The Este Lauder Companies Inc. provides a company match for employee contributions to the 401(k) plan, subject to certain conditions.

What is the vesting schedule for the employer match in The Este Lauder Companies Inc.'s 401(k) plan?

The vesting schedule for the employer match in The Este Lauder Companies Inc.'s 401(k) plan typically follows a graded vesting schedule over a period of years.

Can employees of The Este Lauder Companies Inc. take loans against their 401(k) savings?

Yes, employees of The Este Lauder Companies Inc. may have the option to take loans against their 401(k) savings, subject to plan rules.

What investment options are available in The Este Lauder Companies Inc.'s 401(k) plan?

The Este Lauder Companies Inc.'s 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds.

Are there any fees associated with The Este Lauder Companies Inc.'s 401(k) plan?

Yes, there may be fees associated with The Este Lauder Companies Inc.'s 401(k) plan, which can include administrative fees and investment management fees.

How often can employees of The Este Lauder Companies Inc. change their contribution amounts to the 401(k) plan?

Employees of The Este Lauder Companies Inc. can typically change their contribution amounts to the 401(k) plan on a quarterly basis or during open enrollment periods.

What is the minimum contribution percentage required for The Este Lauder Companies Inc.'s 401(k) plan?

The minimum contribution percentage required for The Este Lauder Companies Inc.'s 401(k) plan may vary, but it is often set at 1% or 2% of eligible pay.

Can employees of The Este Lauder Companies Inc. roll over funds from other retirement accounts into their 401(k)?

Yes, employees of The Este Lauder Companies Inc. can roll over funds from other qualified retirement accounts into their 401(k) plan.

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

Pension Plan: The Estée Lauder Companies' primary pension plan is the Retirement Growth Account (RGA) Plan. This is a defined benefit plan where benefits are generally calculated based on years of service and the employee's compensation. The plan is designed to provide a stable income upon retirement. Employees are typically fully vested after five years of service, meaning they are entitled to full benefits even if they leave the company after this period. The plan is intended to work alongside other retirement income sources, including the company’s 401(k) plan and Social Security. 401(k) Plan: The Estée Lauder Companies 401(k) Savings Plan is a defined contribution plan, where employees can contribute a portion of their paycheck towards retirement savings. The company offers matching contributions to a certain percentage, enhancing the savings potential for employees. The plan is available to most employees and includes a variety of investment options, allowing participants to tailor their retirement savings strategy according to their individual financial goals.

Layoffs & Restructuring: In August 2023, Estée Lauder announced a significant restructuring plan involving layoffs and a strategic shift. The company aimed to reduce its global workforce by approximately 10% to streamline operations and focus on high-growth areas. This decision followed a period of slower-than-expected growth and shifting market dynamics. The restructuring is part of a broader effort to enhance operational efficiency and adapt to changing consumer preferences. This news is crucial to address due to the current economic climate, which impacts investment strategies and financial planning. The ongoing economic uncertainties and evolving tax policies make it essential for stakeholders to stay informed about such corporate actions to make informed decisions about their investments and retirement planning.

The Estée Lauder Companies Inc. provided stock options and RSUs to its executive team and senior management as part of their long-term incentive plan. The stock options granted are typically non-qualified stock options (NSOs) and the RSUs are granted based on performance metrics and tenure.

Health Benefits Information: Medical Coverage: Includes a variety of plans, with options for PPO and HMO plans. Dental and Vision: Offers comprehensive dental and vision care. Mental Health Support: Includes Employee Assistance Programs (EAPs) and mental health resources. Wellness Programs: Wellness initiatives like health screenings and fitness reimbursements. Additional Benefits: Includes health savings accounts (HSAs) and flexible spending accounts (FSAs).