Healthcare Provider Update: Healthcare Provider for Tapestry: Tapestry, the parent company of luxury fashion brands such as Coach, Kate Spade, and Stuart Weitzman, is associated with UnitedHealthcare, which is part of UnitedHealth Group. UnitedHealthcare provides Tapestry employees with a variety of health insurance options that are typically inclusive of medical, dental, and vision benefits. Potential Healthcare Cost Increases for Tapestry in 2026: As Tapestry navigates the evolving healthcare landscape, substantial increases in healthcare costs are anticipated in 2026. With the potential expiration of enhanced federal premium subsidies for Affordable Care Act (ACA) plans, many enrollees could face premium hikes exceeding 75%. Insurers are reporting a sharp rise in medical costs and have begun to implement rate increases, with some individual market plans (like those from UnitedHealthcare) requesting increases as high as 66.4%. These combined factors may significantly raise Tapestry's healthcare expenses and affect their employee benefits offerings. Click here to learn more
The findings from a recent survey conducted by the AARP and the NORC Center for Public Affairs Research
reveal a concerning outlook that will impact Tapestry employees' readiness for retirement. Approximately 25% of U.S. adults aged 50 and older, who are still in the workforce, doubt they will ever be able to retire. This belief is fueled by growing anxieties, with 70% worried their earnings are not keeping pace with escalating costs.
This study, which involved more than 8,000 participants, underscores the deep financial concerns plaguing many individuals in this demographic. Notably, about one in four respondents reported having no retirement savings whatsoever, exposing the formidable challenges they face in securing financial stability for their later years.
Key hindrances to saving adequately for retirement include high housing costs—both rent and mortgage payments—and daily living expenses, which intensify financial pressures.
The data reveals
that 12% of older adults are burdened with credit card debts exceeding $20,000, and a third have balances over $10,000. Moreover, 37% voiced concerns about their ability to afford basic necessities such as housing and food.
These financial strains have far-reaching implications, affecting not only individual retirement strategies but also the broader economic landscape. 'The lack of accessible retirement saving options combined with inflation is making it increasingly difficult for individuals to decide when they can retire,'
noted Indira Venkateswaran, AARP's senior vice president of research
.
Continued polling by AARP
shows a steady number of adults aged 50 and older who foresee an inability to retire—23% in January 2022, slightly rising to 24% by July. David John, Senior Strategic Policy Advisor at the AARP Public Policy Institute, points out that a significant number of older adults remain in the workforce primarily due to inadequate retirement funds.
Political leaders have also taken note of these issues, given the high voter turnout rates among older Americans. President Joe Biden has focused on policies like allowing Medicare to negotiate directly with drug companies to reduce prescription costs and capping insulin prices at $35 for Medicare beneficiaries. Conversely, former President Donald Trump hinted at potential entitlement program reforms in a CNBC interview in March, although his campaign later assured that, if reelected, he would uphold Social Security and Medicare.
The sustainability of Social Security and Medicare remains a pressing concern.
According to the latest trustees' report, Medicare may not fully cover nursing home stays and inpatient hospital visits by 2031.
Social Security faces similar challenges, with its fund expected to deplete before it can continue full payments by 2033.
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Public sentiment strongly opposes any cuts to Medicare or Social Security, as reflected in a March 2023 AP-NORC poll.
The majority of respondents favor imposing higher taxes on the wealthiest Americans to maintain Medicare's solvency.
The necessity for robust policy measures to ensure the financial well-being of America's elderly population is more urgent than ever, as demographic and economic pressures converge. Recent trends indicate many older Americans, including Tapestry employees, are turning to part-time entrepreneurship—a viable means to supplement income and remain active. A 2021 study by the Ewing Marion Kauffman Foundation found individuals over 55 increasingly starting their own businesses, driven by desires for flexible work schedules, personal fulfillment, and financial security.
For many Tapestry employees approaching retirement, the journey increasingly resembles navigating a sailboat through stormy seas. Facing financial turbulence, these near-retirees must frequently adjust their course, akin to sailors adapting to changing winds and currents. For about 25% of these individuals, the lack of sufficient retirement funds means they must keep sailing, working into old age and exploring alternative income sources such as side jobs. This ongoing journey is not only a necessity but also an opportunity for personal growth and redefining life goals.
What is Tapestry's 401(k) plan?
Tapestry's 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are deducted.
How can I enroll in Tapestry's 401(k) plan?
You can enroll in Tapestry's 401(k) plan by accessing the employee benefits portal and following the enrollment instructions provided.
What types of contributions can I make to Tapestry's 401(k) plan?
Tapestry's 401(k) plan allows for pre-tax contributions, Roth after-tax contributions, and potentially catch-up contributions if you are over 50.
Does Tapestry match employee contributions to the 401(k) plan?
Yes, Tapestry offers a matching contribution to the 401(k) plan, which helps employees grow their retirement savings.
How much can I contribute to Tapestry's 401(k) plan each year?
For 2023, the maximum employee contribution limit to Tapestry's 401(k) plan is $22,500, with an additional $7,500 catch-up contribution allowed for employees aged 50 and older.
When can I start withdrawing from Tapestry's 401(k) plan?
You can start withdrawing from Tapestry's 401(k) plan without penalties at age 59½, although you may have options for hardship withdrawals earlier.
What investment options are available in Tapestry's 401(k) plan?
Tapestry's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.
Can I take a loan from Tapestry's 401(k) plan?
Yes, Tapestry allows employees to take loans from their 401(k) accounts under certain conditions and limits.
How do I change my contribution percentage for Tapestry's 401(k) plan?
You can change your contribution percentage by logging into the employee benefits portal and updating your contribution settings.
What happens to my 401(k) plan if I leave Tapestry?
If you leave Tapestry, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in Tapestry's plan if allowed.