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Why BorgWarner Employees Should Take Social Security Knowledge Seriously: The Alarming Truth Behind Recent Quiz Results

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Healthcare Provider Update: Healthcare Provider for BorgWarner BorgWarner offers health insurance coverage to its employees, but specific provider details can vary by location and plan. Typically, they provide options that may include large health insurance networks like Blue Cross Blue Shield or Cigna, as well as other regional insurers depending on the geographic area. Employees should check with their HR department for the precise providers available to them under BorgWarner's health plans. Projected Healthcare Cost Increases for BorgWarner Employees in 2026 In 2026, BorgWarner employees are likely to face significant healthcare cost increases as many factors converge to drive premiums higher. A report indicates that with the anticipated expiration of enhanced ACA federal subsidies, rising medical expenses-especially around specialty medications-and insurer rate hikes could see out-of-pocket premium costs soaring by as much as 75% for many individuals. Coupled with employers' plans to raise deductibles and out-of-pocket maximums to manage rising expenses, this could leave employees grappling with the financial implications of their healthcare coverage. Therefore, it is essential for BorgWarner employees to carefully review their health benefits and strategize to mitigate these rising costs. Click here to learn more

Recent examination of the Social Security program's nuances and complexities has shown a sizable knowledge gap among individuals approaching retirement age. Startling data uncovered by a thorough analysis carried out by MassMutual highlight the critical need to improve Social Security knowledge within this population. As employees near retirement, its crucial to have strong foundational knowledge of Social Security. 


Seventy-eight percent of people between the ages of fifty and sixty-five failed or barely passed a thirteen-question true-false test meant to test their understanding of Social Security regulations and benefits. This is a concerning number because 41% of students received a grade of D, 37% received an outright failing mark, and less than 1% received a perfect score. Compared to the prior year, when 69% of respondents either failed or barely passed, this indicates a decrease in knowledge.

This is a crucial conclusion for BorgWarner employees, particularly in light of the significant role that Social Security is anticipated to play as the main source of income for many people in their retirement years. According to the MassMutual survey, Social Security is expected to be the primary source of income for 40% of near-retirees after they leave the workforce. This is higher than income from assets, 401(k) or 403(b) plans, and pensions.

In order to make educated decisions, BorgWarner employees must have a thorough understanding of Social Security regulations. For instance, there is no advantage to deferring claims past the age of 70, and payments may be lowered if made prior to attaining full retirement age. Remarkably, 66 to 67 is the current full retirement age, depending on one's birth date; over half of the respondents were not aware of this. David Freitag, a MassMutual financial planning counselor and Social Security expert, refers to this ignorance as 'tragic mistakes.'


The results have broad ramifications, particularly as a large segment of baby boomers near 65, a date frequently linked to retirement preparation because of Medicare eligibility. Nevertheless, Medicare eligibility and Social Security full retirement age are different, emphasizing the necessity of thorough retirement planning for BorgWarner employees. Planning that includes income and health insurance plans.

It is hard to exaggerate how complicated the Social Security system is, with regulations controlling everything from the effect of early retirement on benefits to dependents' and spouses' eligibility. There are several myths that circulate, like the idea that Social Security money is kept in private accounts that pay interest or that being a citizen of the United States is a requirement for receiving benefits. These false beliefs may result in less-than-ideal claim tactics, which could jeopardize the financial security of BorgWarner retirees.

Furthermore, the existing law indicates that Social Security payouts would be reduced by 2035, which makes it even more urgent for potential beneficiaries to become more aware of and prepared for this fact. The results of the study also show that people are noticeably dependent on Social Security even though they don't know much about it; a sizable percentage of participants were unaware of how much income their payments would replace.

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To sum up, the MassMutual study is a strong cry for more knowledge and understanding about Social Security. It is impossible to overestimate the significance of making well-informed decisions, especially as retirement planning for BorgWarner employees continues to change. When retirement approaches, BorgWarner employees should be proactive in improving their knowledge about Social Security so they can better handle the challenges of retirement income planning. This information is essential for ensuring a secure and prosperous retirement, not just for financial reasons.

The possibility of inflation having an effect on Social Security benefits is a crucial factor for people who are getting close to retirement. The Cost of Living Adjustment (COLA), which is used to adjust Social Security benefits for cost-of-living increases, may not keep up with real increases in living expenses. The COLA was 1.3% in 2021, which was less than the real inflation rate. This disparity emphasizes how crucial it is to budget for sources of income other than Social Security in order to sustain your preferred standard of living in retirement. Financial stability requires having a thorough understanding of Social stability and making appropriate plans. (Source: COLA Information, Social Security Administration, 2021).

Getting around Social Security is like trying to navigate a huge ocean without a compass. Knowing the ins and outs of Social Security's regulations and benefits is as important for many people who are approaching retirement—both seasoned workers and retirees—as being aware of the sea's currents and weather patterns. The shocking figure that 78% of people who are close to retirement failed or barely passed a basic Social Security exam illustrates the misunderstanding that surrounds this important retirement planning element. A comprehensive understanding of Social Security guarantees a smoother journey into retirement by avoiding the hazards that can compromise one's financial security in their golden years, just as a good sailor uses information and instruments to navigate through tough waters.

What is the 401(k) plan offered by BorgWarner?

The 401(k) plan at BorgWarner is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How does BorgWarner match employee contributions to the 401(k) plan?

BorgWarner offers a matching contribution to the 401(k) plan, which means they will match a percentage of the employee's contributions up to a certain limit.

Can employees at BorgWarner contribute to their 401(k) plan through payroll deductions?

Yes, employees at BorgWarner can contribute to their 401(k) plan through automatic payroll deductions, making it easy to save for retirement.

What is the eligibility requirement for BorgWarner's 401(k) plan?

Employees become eligible to participate in BorgWarner's 401(k) plan after completing a specified period of service, which is typically outlined in the plan documents.

Does BorgWarner offer a Roth 401(k) option?

Yes, BorgWarner provides a Roth 401(k) option that allows employees to contribute after-tax dollars, with the potential for tax-free withdrawals in retirement.

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

Employees can access their 401(k) account information through the designated online portal provided by BorgWarner's plan administrator.

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

BorgWarner's 401(k) plan typically offers a range of investment options, including mutual funds, target-date funds, and possibly company stock.

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

Yes, BorgWarner allows employees to take loans against their 401(k) savings, subject to certain conditions and limits set by the plan.

What happens to my BorgWarner 401(k) if I leave the company?

If you leave BorgWarner, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the BorgWarner plan if permitted.

Is there a vesting schedule for BorgWarner's 401(k) matching contributions?

Yes, BorgWarner has a vesting schedule for matching contributions, meaning employees must work for the company for a certain period to fully own those contributions.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
BorgWarner announced a major restructuring initiative in Q2 2024, including significant layoffs affecting approximately 10% of their workforce. The company is also modifying its pension plan, shifting from defined benefit to defined contribution schemes for new employees. Additionally, changes are being made to their 401(k) matching contributions.
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For more information you can reach the plan administrator for BorgWarner at 3850 Hamlin Rd Auburn Hills, MI 48326; or by calling them at +1 248-754-9200.

*Please see disclaimer for more information

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