Why More W.W. Grainger Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for W.W. Grainger
W.W. Grainger offers healthcare benefits primarily through UnitedHealthcare and Anthem Blue Cross Blue Shield (BCBS). These providers supply various health insurance plans and related services for Grainger's employees, focusing on both individual and group health insurance solutions.
Projected Healthcare Cost Increases for 2026
As W.W. Grainger prepares for 2026, it faces the looming prospect of healthcare cost increases resulting from projected record hikes in Affordable Care Act (ACA) premiums. Experts forecast that without the continuation of enhanced federal subsidies, which are set to expire, more than 22 million policyholders could experience a staggering increase of over 75% in their out-of-pocket premiums. The combination of rising medical costs, including hospital and prescription drug prices, alongside significant insurance company rate hikes, indicates that both employers like Grainger and their employees will need to brace for heightened financial strain in the coming year.
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'W.W. Grainger 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.
'W.W. Grainger 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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W.W. Grainger 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 W.W. Grainger 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 W.W. Grainger 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 W.W. Grainger 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 W.W. Grainger.
📞 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 401(k) plan offered by W.W. Grainger?
The 401(k) plan at W.W. Grainger is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.
How does W.W. Grainger match employee contributions to the 401(k) plan?
W.W. Grainger offers a matching contribution up to a certain percentage of the employee's salary, which helps to enhance retirement savings.
When can employees at W.W. Grainger start contributing to the 401(k) plan?
Employees at W.W. Grainger can begin contributing to the 401(k) plan after completing a specified period of employment, typically within their first year.
What types of investments are available in W.W. Grainger's 401(k) plan?
W.W. Grainger's 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to diversify their portfolios.
Are there any fees associated with W.W. Grainger's 401(k) plan?
Yes, W.W. Grainger's 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.
How can employees at W.W. Grainger access their 401(k) account?
Employees can access their W.W. Grainger 401(k) account online through the plan's designated portal or by contacting the plan administrator.
Can employees at W.W. Grainger take loans against their 401(k) savings?
Yes, W.W. Grainger allows employees to take loans against their 401(k) savings, subject to certain terms and conditions outlined in the plan.
What happens to the 401(k) plan if an employee leaves W.W. Grainger?
If an employee leaves W.W. Grainger, they can roll over their 401(k) balance to another retirement account, withdraw the funds, or leave the money in the W.W. Grainger plan if allowed.
Is there a vesting schedule for W.W. Grainger's 401(k) matching contributions?
Yes, W.W. Grainger has a vesting schedule for its matching contributions, meaning employees must work for the company for a certain period to fully own those contributions.
How often can employees at W.W. Grainger change their 401(k) contribution amount?
Employees at W.W. Grainger can change their 401(k) contribution amount during designated enrollment periods or as permitted by the plan.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Search for W.W. Grainger's Pension Plan:
Review the most recent Form 10-K or similar annual report.
Check company filings with the SEC.
Look into employee benefit guides or summary plan descriptions.
Search for W.W. Grainger's 401(k) Plan:
Check the same sources as above for information on 401(k) specifics.
Look into any recent plan changes or updates.
Restructuring and Layoffs: In early 2024, W.W. Grainger announced a restructuring plan aimed at streamlining operations and improving efficiency. This restructuring involves the reduction of approximately 5% of their workforce. The decision is part of a broader strategy to optimize their supply chain and adapt to shifting market conditions. The importance of this news is underscored by the current economic climate, where companies are increasingly adjusting their operations to navigate inflationary pressures and evolving market demands.
W.W. Grainger provides Non-Qualified Stock Options (NSOs) and Restricted Stock Units (RSUs) to its executives and key employees. In 2022, W.W. Grainger granted RSUs with a typical vesting period of three years, aligning with industry standards. For 2023, the company continued to offer RSUs and stock options to attract and retain talent, detailed in their 2023 DEF 14A on page 32.
Health Insurance Options: Grainger provides a variety of health insurance plans, including dental, vision, life, and disability insurance, alongside a standard medical plan. They also offer a Health Savings Account (HSA) option, which enables employees to save for future medical expenses on a tax-advantaged basis (Built In) (Home Page).
Flexible Spending Accounts (FSA): Employees can use FSAs to set aside pre-tax funds for healthcare expenses, which can help offset rising healthcare costs.
Mental Health and Wellness Programs: Grainger supports mental health through wellness programs, mental health benefits, and on-site resources, emphasizing a holistic approach to employee wellness (Home Page).
Healthcare Cost Increases: In 2024, like many employers, Grainger faces rising healthcare costs, anticipated to increase between 5.4% and 8.5%. These trends reflect the broader economic challenges in managing employer-sponsored healthcare (Home Page).
Pet and Transgender Health Benefits: Unique benefits include coverage for transgender health care and pet insurance, illustrating Grainger's commitment to diverse and inclusive employee needs (Built In).
Abortion Travel Benefits: In response to changing legal landscapes, Grainger added abortion travel benefits to ensure access to care for employees in states where services might be restricted (Home Page).
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