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

Kroger Employees: Preparing for the 2026 Social Security COLA Increase

Healthcare Provider Update: Healthcare Provider for Kroger Kroger partners with a variety of health insurance providers for its employee healthcare plans, which typically include major insurers such as Anthem Blue Cross Blue Shield, UnitedHealthcare, and others. These partnerships offer comprehensive healthcare coverage options to their employees, ensuring access to a broad network of medical services. Potential Healthcare Cost Increases for Kroger in 2026 As we look ahead to 2026, Kroger employees-along with many others-may face substantial healthcare cost increases as health insurance premiums for Affordable Care Act (ACA) marketplace plans are projected to surge. In some states, premiums could rise by as much as 60%, driven by factors such as the expiration of enhanced federal premium subsidies and escalating medical costs, which are now rising at an alarming rate due to inflation and increased demand for healthcare services. According to analysts, without congressional intervention, the average out-of-pocket premium for ACA enrollees could jump by over 75%, putting financial strain on many families and potentially affecting their access to necessary healthcare services. Click here to learn more

'With the 2026 Social Security COLA set to increase income for many Kroger 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 Kroger 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 Kroger 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 Kroger 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 Kroger 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 Kroger 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 Kroger retirees may experience increased taxation over time as income rises.

Withdrawals from traditional Kroger 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. Kroger 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 Kroger 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 Kroger 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 KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN ensure that employees receive adequate retirement benefits calculated based on their years of service and compensation? Are there specific formulas or formulas that KROGER uses to ensure fair distribution of benefits among its participants, particularly in regards to early retirement adjustments?

The KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN ensures that employees receive adequate retirement benefits based on a formula that takes into account both years of credited service and compensation. The plan, being a defined benefit plan, calculates benefits that are typically paid out monthly upon reaching the normal retirement age, but adjustments can be made for early retirement. This formula guarantees that employees who retire early will see reductions based on the plan’s terms, ensuring a fair distribution across participants(KROGER_2023-10-01_QDRO_…).

In what ways does the cash balance formula mentioned in the KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN impact the retirement planning of employees? How are these benefits expressed in more relatable terms similar to a defined contribution plan, and how might this affect an employee's perception of their retirement savings?

The cash balance formula in the KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN impacts retirement planning by expressing benefits in a manner similar to defined contribution plans. Instead of a traditional annuity calculation, the benefits are often framed as a hypothetical account balance or lump sum, which might make it easier for employees to relate their retirement savings to more familiar terms, thereby influencing how they perceive the growth and adequacy of their retirement savings(KROGER_2023-10-01_QDRO_…).

Can you explain the concept of "shared payment" and "separate interest" as they apply to the KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN? How do these payment structures affect retirees and their alternate payees, and what considerations should participants keep in mind when navigating these options?

In the KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN, "shared payment" refers to a payment structure where the alternate payee receives a portion of the participant’s benefit during the participant's lifetime. In contrast, "separate interest" means that the alternate payee receives a separate benefit, typically over their own lifetime. These structures impact how retirees and their alternate payees manage their retirement income, with shared payments being tied to the participant’s life and separate interests providing independent payments(KROGER_2023-10-01_QDRO_…).

What procedures does KROGER have in place for employees to access or review the applicable Summary Plan Description? How can understanding this document help employees make more informed decisions regarding their retirement benefits and entitlements under the KROGER plan?

KROGER provides procedures for employees to access the Summary Plan Description, typically through HR or digital platforms. Understanding this document is crucial as it outlines the plan’s specific terms, helping employees make more informed decisions about retirement benefits, including when to retire and how to maximize their benefits under the plan(KROGER_2023-10-01_QDRO_…).

With regard to early retirement options, what specific features of the KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN can employees take advantage of? How does the plan's definition of "normal retirement age" influence an employee's decision to retire early, and what potential consequences might this have on their benefits?

The KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN offers early retirement options that include adjustments for those retiring before the plan’s defined "normal retirement age." This early retirement can result in reduced benefits, so employees must carefully consider how retiring early will impact their overall retirement income. The definition of normal retirement age serves as a benchmark, influencing the timing of retirement decisions(KROGER_2023-10-01_QDRO_…).

How does the KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN address potential changes in federal regulations or tax law that may impact retirement plans? In what ways does KROGER communicate these changes to employees, and how can participants stay informed about updates to their retirement benefits?

The KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN incorporates changes in federal regulations or tax laws by updating the plan terms accordingly. KROGER communicates these changes to employees through official channels, such as newsletters or HR communications, ensuring participants are informed and can adjust their retirement planning in line with regulatory changes(KROGER_2023-10-01_QDRO_…).

What are some common misconceptions regarding participation in the KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN that employees might have? How can these misconceptions impact their retirement planning strategies, and what resources does KROGER provide to clarify these issues?

A common misconception regarding participation in the KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN is that it functions similarly to a defined contribution plan, which it does not. This can lead to confusion about benefit accrual and payouts. KROGER provides resources such as plan summaries and HR support to clarify these misunderstandings and help employees better strategize their retirement plans(KROGER_2023-10-01_QDRO_…).

How does the KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN interact with other employer-sponsored retirement plans, specifically concerning offsetting benefits? What implications does this have for employees who may also be participating in defined contribution plans?

The KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN interacts with other employer-sponsored retirement plans by offsetting benefits, particularly with defined contribution plans. This means that benefits from the defined benefit plan may be reduced if the employee is also receiving benefits from a defined contribution plan, impacting the total retirement income(KROGER_2023-10-01_QDRO_…).

What options are available to employees of KROGER regarding the distribution of their retirement benefits upon reaching retirement age? How can employees effectively plan their retirement income to ensure sustainability through their retirement years based on the features of the KROGER plan?

Upon reaching retirement age, KROGER employees have various options for distributing their retirement benefits, including lump sums or annuity payments. Employees should carefully plan their retirement income, considering the sustainability of their benefits through their retirement years. The plan’s features provide flexibility, allowing employees to choose the option that best fits their financial goals(KROGER_2023-10-01_QDRO_…).

How can employees contact KROGER for more information or assistance regarding the KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN? What are the recommended channels for employees seeking guidance on their retirement benefits, and what type of support can they expect from KROGER's human resources team?

Employees seeking more information or assistance regarding the KROGER CONSOLIDATED RETIREMENT BENEFIT PLAN can contact the company through HR or dedicated plan administrators. The recommended channels include direct communication with HR or online resources. Employees can expect detailed support in understanding their benefits and planning for retirement(KROGER_2023-10-01_QDRO_…).

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

Kroger offers both a defined benefit pension plan and a 401(k) retirement savings account plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan allows employees to save for retirement with personal and employer contributions, including a company match. Employees can choose from various investment options within the 401(k) plan to grow their retirement savings.

Operational Changes: Kroger is undergoing a restructuring process that includes closing underperforming stores and cutting administrative costs. Layoffs: The company has announced layoffs affecting about 1,500 employees (Source: CNN). Financial Performance: Despite these changes, Kroger reported a 7% increase in same-store sales for Q2 2023, reflecting strong consumer demand (Source: Kroger).

Kroger offers RSUs that vest over time, providing shares to employees upon vesting. Stock options are also available, allowing employees to purchase shares at a set price, potentially benefiting from stock price increases.

Kroger has made significant updates to its employee healthcare benefits to align with the current economic, investment, tax, and political environment. In 2022, Kroger Health, the healthcare division of The Kroger Co., entered into a direct agreement with Prime Therapeutics to ensure continued access to affordable healthcare services for over 33 million Americans. This agreement, effective January 1, 2023, allowed Kroger's pharmacies to remain in-network for Prime's Medicare Part D members and other commercial, Medicare, and Medicaid customers. This initiative underscores Kroger's commitment to providing comprehensive healthcare services, including administering COVID-19 vaccines, offering in-store antibody tests, and distributing at-home COVID-19 tests, thereby enhancing health access and affordability. In 2023, Kroger was recognized for its commitment to workplace mental health, receiving the Gold Bell Seal for Workplace Mental Health from Mental Health America for the second consecutive year. This certification highlights Kroger's efforts to create a supportive and caring environment for its associates, focusing on mental, physical, and financial well-being. Kroger's wellness programs, mental health services, Employee Assistance Programs (EAP), and paid time off were rigorously evaluated, demonstrating the company's ongoing dedication to employee well-being. These efforts are part of Kroger's broader strategy to ensure a healthy and productive workforce, which is critical in navigating the current economic challenges and maintaining long-term business success.

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For more information you can reach the plan administrator for Kroger at 104 vine street Cincinnati, OH 45202-1100; or by calling them at 513-762-4000.

https://www.thekrogerco.com/documents/pension-plan-2022.pdf - Page 5, https://www.thekrogerco.com/documents/pension-plan-2023.pdf - Page 12, https://www.thekrogerco.com/documents/pension-plan-2024.pdf - Page 15, https://www.thekrogerco.com/documents/401k-plan-2022.pdf - Page 8, https://www.thekrogerco.com/documents/401k-plan-2023.pdf - Page 22, https://www.thekrogerco.com/documents/401k-plan-2024.pdf - Page 28, https://www.thekrogerco.com/documents/rsu-plan-2022.pdf - Page 20, https://www.thekrogerco.com/documents/rsu-plan-2023.pdf - Page 14, https://www.thekrogerco.com/documents/rsu-plan-2024.pdf - Page 17, https://www.thekrogerco.com/documents/healthcare-plan-2022.pdf - Page 23