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Is Waiting Until Age 70 to Claim Social Security the Right Move for MillerKnoll Retirees?

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Healthcare Provider Update: MillerKnoll offers health insurance coverage through PPO plans with Blue Cross Blue Shield of Michigan. Employees benefit from low deductibles, preventive care at no cost, and access to a broad provider network. The company also provides dental and vision coverage, FSAs, HSAs, and prescription drug benefits through Express Scripts. Additional perks include wellness programs, mental health support, and a 401(k) with employer match 1. MillerKnoll Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

MillerKnoll employees who choose to defer their Social Security benefits are essentially investing in their future financial security; careful planning with the assistance of seasoned professionals like Wesley Boudreaux from The Retirement Group, a division of Wealth Enhancement Group.

Patrick Ray of The Retirement Group, a division of Wealth Enhancement Group, emphasizes the importance of integrating deferred Social Security with overall retirement strategy for MillerKnoll employees to ensure a comprehensive approach to achieving long-term financial independence.

In this article, we will discuss:

  • 1. The financial benefits and increased monthly payouts  of deferring Social Security benefits for MillerKnoll employees, exploring how delaying claims can lead to significant increases in retirement income.
  • 2. The potential drawbacks and necessary considerations  when postponing Social Security, including the impact on other retirement assets and tax implications.
  • 3. Strategic planning for retirement , focusing on integrating Social Security with Medicare, market conditions, and personal circumstances to optimize retirement outcomes.
  • Deciding when to start receiving Social Security benefits is a pivotal choice in the broader scope of retirement planning for MillerKnoll employees. This decision significantly affects an individual's ability to maintain financial freedom throughout their later years. As a benefit that is adjusted for inflation and shielded against the dual retirement risks of inflation and longevity, Social Security forms a crucial element of retirement income.
  • For MillerKnoll employees looking to sustain their desired lifestyle and financial independence after retiring, it is vital to blend Social Security with other sources of retirement income like pensions and personal savings. Here is a detailed analysis of the benefits and drawbacks of deferring Social Security payments.

Benefits of Postponing Social Security

Deferring Social Security benefits until past the designated maximum retirement age can significantly increase the monthly payout.  According to a January 2024 report from the Social Security Administration, delaying benefits until age 70 could lead to an almost 8% annual increase, which translates to about two-thirds of 1% per month.  For individuals born before 1955, this could mean receiving up to 132% of the standard monthly pension at full retirement age; those born later might receive slightly less.

Not only does this delay enhance the monthly benefit, but it also raises the base amount used for future cost-of-living adjustments (COLAs). The Social Security Administration applies these increases to a higher base payment annually to help counteract inflation, resulting in more substantial yearly increases.

Another significant advantage for MillerKnoll employees is the potential increase in their spouse's survivor benefits. Should you pass away, your spouse could receive either your enhanced benefits or their own, thus ensuring greater financial freedom.

Possible Consequences of Delaying Social Security

However, delaying Social Security might not suit everyone. It could necessitate the early withdrawal of other retirement assets meant for different purposes, such as inheritance. Moreover, since withdrawals from traditional retirement accounts like 401(k)s could reduce overall retirement income, it's crucial to consider the tax implications.

Taking Health and Emotional Aspects into Account

The decision on when to begin receiving Social Security also heavily depends on individual health and emotional well-being. Some might prefer accessing funds early due to health issues or to assist in a more relaxed and immediate retirement. Balancing financial planning with these emotional factors is critical.

Opportunities and Challenges in the Market

For those considering delays, it's essential to factor in potential future legislative changes to Social Security and market volatility. Selling investments in a bear market to supplement delayed payments could negate the financial benefits of delaying Social Security. Retirement planning should account for possible legislative alterations that could affect future benefits.

Navigating Medicare and Health Insurance

The timing of Social Security is closely linked to health insurance coverage, particularly Medicare. To manage penalties, one must enroll in Medicare within three months of reaching 65. For MillerKnoll employees who delay Social Security past 65, it's crucial to apply for Medicare separately to maintain continuous coverage and manage late enrollment penalties for Part B and Part D.

Choosing Wisely

Making an informed decision about when to claim Social Security requires a thorough evaluation of financial needs, health status, tax implications, other available resources, and overall retirement goals. Claiming early results in permanently reduced payments, and earnings above certain thresholds may incur penalties. This decision is highly personal and requires careful consideration.

In conclusion, delaying Social Security involves weighing immediate needs against long-term security. By carefully analyzing the benefits and potential drawbacks, individuals can make well-informed decisions that can assist in a comfortable and meaningful retirement.

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This strategic approach is akin to planting a tree; while the benefits of delaying Social Security might not be immediate, they significantly enhance financial freedom in later years, much like a tree that grows stronger and provides broader coverage as it matures. This analogy is particularly apt for MillerKnoll employees planning for a stable and prosperous retirement.

Sources:

1. 'Social Security Benefit Deferral: What to Know.'  William & Mary Elder and Disability Law Clinic , Oct. 2022, elderlawclinic.pages.wm.edu. Accessed 3 Feb. 2025.

2. Davis, Chris. ''Nearly every retiree should defer Social Security.''  Investment News , 12 Sep. 2024,  www.investmentnews.com . Accessed 3 Feb. 2025.

3. Reddick, Chris. 'How to Effectively Save for Retirement in MillerKnoll Companies.'  Chris Reddick Financial Planning, LLC www.chrisreddickfp.com . Accessed 3 Feb. 2025.

4. Nuss, Ken. 'Annuities Can Help You Retire Early, Delay Social Security.'  Kiplinger www.kiplinger.com . Accessed 3 Feb. 2025.

5. Brandt, Benjamin. 'Strategic Retirement Planning for MillerKnoll Employees.'  Forbes www.forbes.com . Accessed 3 Feb. 2025.

What type of retirement plan does MillerKnoll offer to its employees?

MillerKnoll offers a 401(k) retirement savings plan to its employees.

How can employees at MillerKnoll enroll in the 401(k) plan?

Employees at MillerKnoll can enroll in the 401(k) plan through the company's online benefits portal or by contacting the HR department for assistance.

Does MillerKnoll match employee contributions to the 401(k) plan?

Yes, MillerKnoll provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.

What is the maximum contribution limit for the MillerKnoll 401(k) plan?

The maximum contribution limit for the MillerKnoll 401(k) plan aligns with IRS guidelines, which can change annually. Employees should check the latest IRS limits for specifics.

When can employees at MillerKnoll start contributing to the 401(k) plan?

Employees at MillerKnoll can start contributing to the 401(k) plan after completing their initial eligibility period, which is typically outlined in the employee handbook.

Are there any fees associated with the MillerKnoll 401(k) plan?

Yes, there may be administrative and investment fees associated with the MillerKnoll 401(k) plan. Employees should review the plan documents for detailed information.

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

Yes, MillerKnoll allows employees to take loans against their 401(k) savings, subject to the terms and conditions of the plan.

What investment options are available in the MillerKnoll 401(k) plan?

The MillerKnoll 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can employees at MillerKnoll change their 401(k) contribution amounts?

Employees at MillerKnoll can change their 401(k) contribution amounts at any time, subject to the plan's guidelines.

What happens to the 401(k) savings if an employee leaves MillerKnoll?

If an employee leaves MillerKnoll, they can choose to roll over their 401(k) savings into another qualified retirement account, cash out, or leave the funds in the MillerKnoll plan, depending on the plan's rules.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Pension Plan Name: MillerKnoll Pension Plan (for defined benefit pension plan) - Information available on pages 12 and 15 of the MillerKnoll 2023 Annual Report. Years of Service and Age Qualification: Employees generally need at least 5 years of service to be eligible for the MillerKnoll Pension Plan. The plan also typically requires employees to be at least 55 years old to qualify for full pension benefits. MillerKnoll 401(k) Savings Plan - Information available on pages 18 and 22 of the MillerKnoll 2023 Benefits Overview. Eligibility for 401(k) Plan: Generally, MillerKnoll employees are eligible to participate in the MillerKnoll 401(k) Savings Plan after completing 30 days of service.
Restructuring and Layoffs: In 2023, MillerKnoll announced significant restructuring plans due to a challenging economic environment. This included the reduction of its workforce as part of a broader cost-cutting strategy. The company aimed to streamline operations and improve profitability by eliminating redundant positions and optimizing its organizational structure. These changes were driven by declining demand in the office furniture sector, which was impacted by remote work trends and economic uncertainties. It is crucial to address this news given the current economic climate, as it highlights the broader trend of companies adjusting their workforce in response to changing market conditions.
MillerKnoll provides stock options and Restricted Stock Units (RSUs) as part of its employee compensation package. Stock options (SO) allow employees to purchase company stock at a fixed price in the future, while RSUs are granted with no purchase required but are subject to vesting conditions. For MillerKnoll, the acronyms often used are SO for stock options and RSU for Restricted Stock Units.
Health Benefits Overview: On MillerKnoll’s official website, you can find information about their health benefits under the "Careers" or "Employee Benefits" section. MillerKnoll offers a comprehensive benefits package that includes medical, dental, and vision insurance, along with wellness programs. Specific Terms & Acronyms: Common terms include HSA (Health Savings Account), FSA (Flexible Spending Account), EAP (Employee Assistance Program), and preventive care benefits.
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For more information you can reach the plan administrator for MillerKnoll at , ; or by calling them at .

https://www.pbgc.gov/ https://www.plansponsor.com/

*Please see disclaimer for more information

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