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

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

Healthcare Provider Update: Healthcare Provider for Walmart Walmart primarily collaborates with UnitedHealthcare, managing health benefits for its employees and offering various health insurance plans. This partnership provides coverage options that cater to the diverse needs of Walmart's workforce. Potential Healthcare Cost Increases in 2026 With the anticipated expiration of enhanced federal ACA premium subsidies, Walmart employees may face significant healthcare cost increases in 2026. Reports indicate that several states could experience hikes exceeding 60%, driven by rising medical expenses and aggressive rate proposals from major insurers. As a result, approximately 92% of marketplace enrollees could see their out-of-pocket premiums surging by over 75%, substantially impacting affordability and necessitating careful evaluation of employer-sponsored and marketplace options to mitigate these financial challenges., 'sources': [], 'images': [] Click here to learn more

'Walmart 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.

'Walmart 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 Walmart 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 Walmart 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 Walmart 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 Walmart 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 Walmart.

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 Walmart offer to its employees?

Walmart offers a 401(k) savings plan to help employees save for retirement.

Does Walmart match employee contributions to the 401(k) plan?

Yes, Walmart provides a company match on employee contributions to the 401(k) plan, up to a certain percentage.

What is the eligibility requirement for Walmart employees to participate in the 401(k) plan?

Walmart employees are generally eligible to participate in the 401(k) plan after completing a specified period of service.

Can Walmart employees choose how much to contribute to their 401(k) plan?

Yes, Walmart employees can choose to contribute a percentage of their salary to their 401(k) plan, within IRS limits.

What investment options are available in Walmart's 401(k) plan?

Walmart's 401(k) plan offers a variety of investment options, including mutual funds and target-date funds.

How can Walmart employees access their 401(k) account information?

Walmart employees can access their 401(k) account information online through the designated retirement plan website.

Is there a vesting period for the company match in Walmart's 401(k) plan?

Yes, Walmart has a vesting schedule for the company match, meaning employees must work for a certain period to fully own the matched funds.

Can Walmart employees take loans against their 401(k) savings?

Yes, Walmart allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What happens to Walmart employees' 401(k) savings if they leave the company?

If Walmart employees leave the company, they can roll over their 401(k) savings into another retirement account or withdraw the funds, subject to taxes and penalties.

Does Walmart provide financial education resources for employees regarding their 401(k) plan?

Yes, Walmart offers financial education resources and tools to help employees make informed decisions about their 401(k) savings.

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

Walmart offers a 401(k) plan with a company match of 100% on the first 6% of eligible pay contributed by employees. The plan features a range of investment options, including target-date funds and mutual funds. Employees can also take advantage of financial education and retirement planning resources. Additionally, Walmart provides an Associate Stock Purchase Plan with company match contributions to help employees build their retirement savings.

Walmart offers RSUs that vest over a specified period, converting into shares upon vesting. Stock options are also available, allowing employees to purchase shares at a fixed price.