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

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Navigating the Retirement Wave: Essential Insights for Builders FirstSource Employees Amid Industry Changes

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Healthcare Provider Update: Healthcare Provider for Builders FirstSource The healthcare provider for Builders FirstSource is not explicitly named in the available resources; however, large employers generally partner with major insurance companies such as UnitedHealthcare, Anthem, Cigna, or Aetna to offer health plans to their employees. Potential Healthcare Cost Increases in 2026 In 2026, employees of Builders FirstSource may face significant healthcare cost increases as a result of anticipated hikes in health insurance premiums-some states may see raises of over 60%. Factors contributing to these increases include the potential expiration of enhanced federal premium subsidies under the Affordable Care Act (ACA) and rising medical care costs driven by inflation and specific expensive treatments. As a result, many employees could experience greater out-of-pocket expenses, compelling them to evaluate their healthcare plans and reassess their financial options carefully. Preparedness in understanding and managing these changes will be crucial for maintaining affordability in the coming year. Click here to learn more

The evolving dynamics of the American labor market, shaped by demographic and economic changes, are having a significant impact on wage and pricing structures. As the country experiences a historic decrease in inflationary pressures, another powerful force is set to reshape the economic landscape: the retirement of the baby boomer generation. We will look at some important statistics and strategies Builders FirstSource employees should know to navigate these key industry shifts. 

This year marks a pivotal moment as 4.1 million Americans are expected to celebrate their 65th birthday, with similar rates anticipated through 2027. According to the  Retirement Income Institute of the Alliance for Lifetime Income , this phenomenon, known as 'peak 65,' is predicted to trigger a significant number of retirements. Although not every individual in this population will retire, the substantial number suggests a significant impact on the labor market.

The resulting demographic shift is likely to keep recruitment levels high. According to current data from the Department of Labor, job vacancies in May were 8.1 million, down from the March 2022 peak of 12.2 million but still significantly above the pre-pandemic level of about 7 million. This steady increase in jobs, especially in sectors heavily staffed by older workers such as manufacturing, healthcare, government, and education, necessitates wage increases as companies strive to attract candidates from a shrinking pool of workers. Builders FirstSource employees should be aware of these shifts in the labor market as it could affect Builders FirstSource down the road.

Despite a drop in the rate of new job entrants, retirements remain robust. According to data from the  Social Security Administration , about 900,000 retirements took place in the United States between January and May of this year alone, projecting a record total of 1.7 million to 2.1 million by year's end. The retirement trend has accelerated from an average annual rate of 1 million to 1.3 million retirements recorded between 2010 and 2019, with nearly 1.6 million last year. The pandemic led to both early departures and financial delays, highlighting the varying effects of external crises on retirement decisions.

For Builders FirstSource employees, understanding the impact of these shifts is crucial, especially in sectors where experienced personnel manage complex relationships between distributors and suppliers. Similarly, in financial sectors, 26.3% of the workforce is composed of older employees, particularly in investment banking and insurance, where long-term contracts are common. According to the  American Property Casualty Insurance Association , the insurance industry is expected to lose about 400,000 employees to retirements by 2026, emphasizing the importance of stability and loyalty in this sector.

In sectors like public administration and manufacturing, older workers make up 25.4% and 25.3% of the workforce, respectively. The production sector in the U.S. has seen a resurgence, with increased demand for employees skilled in digital machine operations, according to  Carolyn Lee , executive director of the Manufacturing Institute. Yet, there remains a challenge to attract young workers who often view factory jobs as undesirable.

Transportation and storage also face demographic challenges, with a higher average age among truck drivers, compounded by regulatory constraints that prevent young people from entering the sector. In education, 23.9% of employees are aged 55 and over, reflecting a preference for job security and benefits associated with union positions.

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The health and social assistance sectors are also heavily affected, with the  American Journal of Nursing  reporting that 4 million nurses will retire by 2030. The pandemic has accelerated retirements and slowed new entries, highlighting critical gaps in medical staff.

As this demographic evolution transforms the labor market, it also has broader economic consequences, affecting wage structures, pricing strategies, and even the approach to training and recruitment across various industries. As the landscape changes, the interaction between aging baby boomers and the challenges of an emerging workforce will remain a crucial area for economic analysis and strategic planning. These shifts are expected to impact Builders FirstSource and employees should take not of these potential upcoming changes.

As retirements continue to transform various sectors, it is essential to consider the global economic context, especially concerning Social Security benefits. According to a 2023 study by the  Social Security Administration , the Social Security Trust Fund is expected to be depleted by 2034, potentially reducing Medicare benefits by 20% unless new reforms are implemented. This is a critical issue for those preparing for retirement or contemplating their options, as the impact of these benefits is significant for financial stability, influencing decisions from retirement timing to investment strategies in sectors like healthcare and financial services.

What is the 401(k) plan offered by Builders FirstSource?

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

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

Builders FirstSource offers a matching contribution to the 401(k) plan, which typically matches a percentage of the employee's contributions, helping to boost retirement savings.

When can employees of Builders FirstSource enroll in the 401(k) plan?

Employees of Builders FirstSource can enroll in the 401(k) plan during their initial onboarding period or during the annual open enrollment period.

What are the eligibility requirements for the 401(k) plan at Builders FirstSource?

To be eligible for the 401(k) plan at Builders FirstSource, employees generally need to be at least 21 years old and have completed a specified period of service.

Can employees of Builders FirstSource take loans against their 401(k) savings?

Yes, Builders FirstSource allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

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

The Builders FirstSource 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

How can employees of Builders FirstSource access their 401(k) account information?

Employees can access their 401(k) account information through the Builders FirstSource benefits portal or by contacting the plan administrator.

What happens to the 401(k) plan if an employee leaves Builders FirstSource?

If an employee leaves Builders FirstSource, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Builders FirstSource plan if eligible.

Does Builders FirstSource offer financial education resources for its 401(k) plan?

Yes, Builders FirstSource provides financial education resources and workshops to help employees make informed decisions about their 401(k) savings.

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

Yes, there may be administrative fees and investment-related fees associated with the Builders FirstSource 401(k) plan, which are disclosed in the plan documents.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Builders FirstSource announced a restructuring plan to streamline operations and reduce costs, which includes potential layoffs.
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For more information you can reach the plan administrator for Builders FirstSource at 2001 Bryan Street, Suite 1600 Dallas, TX 75201; or by calling them at +1 214-880-3500.

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