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

Kraft Employees: Preparing for the 2026 Social Security COLA Increase

Healthcare Provider Update: Healthcare Provider for Kraft Kraft Heinz Company primarily offers its employees a healthcare plan through the Aon Health Solutions, which oversees benefits and health resources for the company. As a sizable employer, Kraft provides a variety of health plans, typically including comprehensive medical, dental, and vision coverage. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are anticipated to surge significantly for Kraft employees, paralleling broader trends across the Affordable Care Act (ACA) marketplace. With health insurance premiums projected to increase by an average of 18%-and in some states exceeding 60% due to the potential expiration of enhanced federal premium subsidies-many workers could face a financial burden. This perfect storm of rising medical costs and shifting insurance policies signals an increase in out-of-pocket expenses, revealing the critical need for strategic planning among employees to manage their healthcare finances effectively. Click here to learn more

'With the 2026 Social Security COLA set to increase income for many Kraft employees in retirement, thoughtful coordination of benefits and withdrawals is essential, as rising income can also elevate tax exposure.' —Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'While the Social Security COLA boost may offer added income for Kraft employees entering retirement, it’s important to plan carefully, as higher benefits can also raise taxable income over time.'—Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How the 2026 Social Security cost-of-living adjustment (COLA) impacts Kraft retirees.
Tax implications of higher Social Security benefits and ways to manage them.
Timing strategies for Social Security benefits and available deductions for retirees.

What Kraft Retirees Need to Know About Social Security COLA 2026

The Social Security cost-of-living adjustment (COLA) for 2026 is set at 2.8%, slightly higher than the previous year’s 2.5% increase. ¹ This annual COLA, announced by the Social Security Administration (SSA) in October and applied to January benefits, helps retirees maintain purchasing power during inflationary periods. For Kraft employees nearing or in retirement, this adjustment can play a key role in income planning.

According to the Bureau of Labor Statistics, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)—which determines COLA—increased 3% over the 12 months ending September 2025. ²

While this is lower than the 8.7% increase in 2023, ³ it may still offer meaningful relief to Kraft retirees experiencing higher living expenses.

How Higher Benefits Could Affect Taxes

As Social Security benefits rise, your combined (or “provisional”) income may increase, which can cause a greater portion of your benefits to be taxed. Combined income includes wages, pensions, interest, dividends, taxable withdrawals from traditional 401(k)s or IRAs, non-taxable interest, and half of your Social Security benefits.

For single filers with income below $25,000 and joint filers below $32,000, Social Security benefits are not taxed. Between $25,000 and $34,000 for single filers and $32,000 and $44,000 for joint filers, up to 50% of benefits may be taxable. Income above those ranges can result in up to 85% of benefits being taxable. ³ These income thresholds are not adjusted for inflation, which means Kraft retirees may experience increased taxation over time as income rises.

Withdrawals from traditional Kraft retirement plans, such as 401(k)s and IRAs, are treated as ordinary income and can increase the taxable portion of Social Security benefits. Thoughtful timing of withdrawals may help manage tax exposure.

Strategies to Manage Tax Impact

If rising taxes are a concern, the following strategies may help:

Balance withdrawals across account types. Coordinating distributions from tax-deferred, taxable, and Roth accounts may help you meet required minimum distribution (RMD) rules while managing your tax bracket.
Use taxable accounts strategically. Only capital gains—not your initial investment—are taxable.
Consider tax-free withdrawals. Qualified distributions from Roth IRAs, Roth 401(k)s, or Health Savings Accounts (HSAs) are not included in taxable income and do not affect Social Security taxation.

New Senior Tax Deduction: 2025–2028

Beginning in 2025, a new senior deduction of $6,000 per person ($12,000 for joint filers) will be available to taxpayers age 65 and older. This deduction phases out at $75,000 adjusted gross income (AGI) for single filers and $150,000 for joint filers.

This deduction is in addition to the age-65+ standard deduction increase of $2,000 for single filers and $1,600 per eligible spouse for joint filers in 2025. Kraft retirees may wish to include this in long-term tax planning.

Timing Your Social Security Benefits

Delaying Social Security until full retirement age (67) or up to age 70 generally results in higher lifetime benefits. Benefits increase by about 8% for each year you delay claiming between your full retirement age and age 70.

For Kraft retirees, delaying benefits may provide additional flexibility in coordinating income from pensions, savings, or retiree medical accounts.

Social Security provides inflation-adjusted income for life, which may contribute to financial stability when aligned with corporate retirement benefits.

Keep the Big Picture in Mind

While the 2026 COLA helps counter rising costs, it can also raise taxable income for some retirees. Thoughtful planning around withdrawals, deductions, and timing of benefits can help manage long-term taxes. Because tax laws are complex, developing a multi-year strategy with a financial advisor is recommended.

The Retirement Group can help Kraft employees explore Social Security strategies, tax-focused withdrawal planning, and retirement income coordination. For more information, call The Retirement Group at (800) 900-5867 .

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Sources:

1. Social Security Administration. Social Security Announces 2.8 Percent Benefit Increase for 2026 . U.S. Government, 24 Oct. 2025, https://www.ssa.gov/news/en/press/releases/2025-10-24.html .

2. Bureau of Labor Statistics. ' Consumer Price Index Summary ,' September 2025.

3. Markowitz, Andy. “Why Social Security COLAs Can Increase Your Taxes.” AARP , 6 Feb. 2024, updated 10 Feb. 2025, https://www.aarp.org/social-security/benefits-taxes-cola/ .

How does the pension plan offered by Kraft Foods Global, Inc. compare to standard retirement plans in terms of employer contribution allocation, and what specific policies should employees be aware of when considering their retirement options through Kraft Foods Global, Inc.?

Kraft Foods Global, Inc. Pension Plan vs. Standard Retirement Plans: The pension plan offered by Kraft Foods Global, Inc. operates as a defined benefit plan, which allocates employer contributions based on years of service and compensation, ensuring steady retirement income based on a formula. This contrasts with standard retirement plans like 401(k)s, where contributions are often employee-driven and subject to market performance. Employees should understand that the guaranteed nature of a pension provides long-term stability, but they must consider the plan’s specific terms regarding eligibility, vesting, and distribution options.

In what ways do the eligibility requirements for contributions to the retirement plans at Kraft Foods Global, Inc. align with IRS regulations for 2024, and what should employees know about these rules when planning their retirement funds?

Eligibility and IRS Regulations for 2024: The eligibility requirements for Kraft Foods Global, Inc.’s retirement plan align with IRS regulations by requiring one year of service for plan participation, with no minimum age requirement. This is typical for defined benefit plans and is in line with IRS standards for qualified plans. Employees planning their retirement funds should ensure they meet the service requirements and understand that contributions are employer-funded rather than employee-driven, unlike other retirement plans that follow IRS contribution limits(Kraft Foods Global Inc_…).

Considering the defined benefit plan structure of Kraft Foods Global, Inc., how are distributions processed at retirement, and what potential tax implications should employees consider when deciding between a lump sum or annuity option upon retirement?

Distribution Options and Tax Implications: Kraft Foods Global, Inc.’s defined benefit plan offers both lump sum and annuity options for retirement distributions. Employees must carefully consider tax implications: lump sums may be subject to immediate taxation, while annuity payments spread income over time, potentially offering tax advantages. Employees should evaluate their financial needs and tax situation to choose the most suitable option for their retirement(Kraft Foods Global Inc_…).

How does Kraft Foods Global, Inc. ensure the stability and sustainability of its retirement funds, known as the retirement plan funding levels, and what measures are in place to protect employees' interests in case of economic downturns?

Retirement Plan Stability and Economic Downturns: Kraft Foods Global, Inc. ensures the stability and sustainability of its retirement funds through a well-funded pension plan, with funding levels reported at over 100%. This level of funding offers protection against economic downturns, safeguarding employee interests. The company also maintains a significant fidelity bond, providing additional security for plan participants in case of adverse financial events(Kraft Foods Global Inc_…).

What resources are available to employees of Kraft Foods Global, Inc. for financial planning assistance related to their retirement, and how can knowledge of these resources influence their decisions regarding retirement savings and benefits?

Financial Planning Resources: Employees of Kraft Foods Global, Inc. have access to various resources, such as retirement plan summaries and consultations with financial planners. These tools can help employees make informed decisions regarding their retirement savings and benefits, potentially influencing their strategies for maximizing contributions and taking advantage of plan features like early retirement options(Kraft Foods Global Inc_…).

How should employees at Kraft Foods Global, Inc. approach the process for requesting a distribution from their retirement plan, and what specific information is required to expedite this process effectively?

Requesting a Distribution: Employees at Kraft Foods Global, Inc. must contact the plan administrator to request a distribution. Providing accurate personal information, retirement dates, and preferred payment methods is essential to expedite the process. It’s crucial to ensure that all documentation is complete to avoid delays(Kraft Foods Global Inc_…).

How does the participation in the additional retirement plans offered by Kraft Foods Global, Inc., such as the Thrift Investment Plan, benefit employees in the context of overall retirement savings and IRS contribution limits for 2024?

Additional Retirement Plans and IRS Contribution Limits: Participation in Kraft Foods Global, Inc.’s Thrift Investment Plan allows employees to enhance their retirement savings while adhering to IRS contribution limits for 2024. This plan complements the pension plan by offering a defined contribution option, giving employees the chance to maximize their overall retirement savings through a combination of employer contributions and personal investments(Kraft Foods Global Inc_…).

What communication channels does Kraft Foods Global, Inc. provide for employees to ask questions or seek clarification regarding their retirement benefits, and what should employees include in their inquiries to receive detailed answers?

Communication Channels for Retirement Benefits: Kraft Foods Global, Inc. provides clear communication channels through its HR department and plan administrators, where employees can ask detailed questions about their retirement benefits. It’s advisable for employees to include specific details in their inquiries, such as their years of service and expected retirement dates, to receive thorough responses(Kraft Foods Global Inc_…).

How do the overall retirement plan offerings at Kraft Foods Global, Inc. facilitate long-term financial security for employees compared to industry standards, and what unique features should employees leverage to maximize their retirement savings?

Maximizing Long-Term Financial Security: The retirement plan offerings at Kraft Foods Global, Inc. focus on long-term financial security by providing guaranteed income through its defined benefit structure. Compared to industry standards, this approach offers employees a more predictable and stable source of retirement income. Employees should leverage features like early retirement options and understand their full benefit potential to optimize their financial outcomes(Kraft Foods Global Inc_…).

What strategies should employees at Kraft Foods Global, Inc. employ to ensure they remain informed about ongoing changes in retirement planning regulations and plan offerings as they approach retirement, especially in light of any adjustments to IRS rules or company policies?

Staying Informed on Retirement Plan Changes: Employees should stay informed about ongoing changes in retirement planning regulations and company policies by regularly reviewing updates from Kraft Foods Global, Inc. and keeping track of IRS adjustments. Attending company-provided financial planning seminars and consulting with financial advisors can help ensure that employees are well-prepared for retirement, especially as IRS rules or plan offerings evolve(Kraft Foods Global Inc_…).

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

Kraft Heinz offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan features company matching contributions and various investment options, including target-date funds and mutual funds. Kraft Heinz provides financial planning resources and tools to help employees manage their retirement savings.

Kraft Heinz is undergoing a major restructuring in 2024, including layoffs and changes to its employee benefits to improve cost efficiency. The company continues to focus on its core food and beverage businesses. Understanding these changes is crucial in today's economic and business landscape, as they impact the company's strategic priorities and financial health.

Kraft Heinz includes RSUs in its employee compensation packages, which vest over a specific period and convert into shares. Stock options are also provided, enabling employees to purchase shares at a predetermined price.