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Donaldson Employees Confront the Fear of Running Out of Money in Retirement

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'To allay long-term financial concerns, Donaldson employees may benefit from a comprehensive retirement strategy that addresses inflation, health care costs, and tax planning.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Proactive retirement planning—especially around inflation, health care, and shifting tax policies—can help Donaldson employees gain clarity and reduce uncertainty in the years leading up to retirement.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

Key causes of retirement anxiety, including inflation, health care, and taxes.
Generational differences in money concerns and readiness.
The value of broad retirement planning approaches.

Retirement Anxiety is On The Rise

Employees across industries, including those at Donaldson, have long worried about how they will fund retirement. These concerns have grown considerably in today’s economy. Nearly two out of three Americans (64%) said they worry more about outliving their resources than they do about dying, according to the Allianz Center for the Future of Retirement’s 2025 Annual Retirement Study. ¹

Main Causes of Retirement-Related Worry

The Allianz study lists several key triggers of these fears. Regarding long-term planning, 54% of respondents said inflation was their top worry. Increases in health care costs, housing, and food prices are still undermining people’s purchasing power.

Concerns around Social Security’s future and tax burdens are also high. 43% said they feared Social Security might not offer adequate support. And another 43% named high taxes as a major issue.

Generational Gaps in Money Stress

Gen X—often balancing care for both kids and aging parents—report the highest worry: 70% versus 66% of millennials and 61% of boomers. Among corporate workers, including those at Donaldson, this dynamic underlines how family obligations can magnify retirement concerns.

The Gap Between Worry and Action

The survey shows a gap between concern and conversation: just 23% of respondents have talked about outliving their assets with a retirement specialist, down from 28% in 2024. ² That said, Americans are considering several strategies to allay these fears, ranking the following approaches as most helpful:

41% said cutting current spending to funnel more toward retirement 
44% said increasing retirement contributions 
39% said postponing retirement
While increasing contributions to retirement accounts could help address these concerns, barriers remain: daily necessities (63%), credit card debt (40%), mortgage or rent (35%) were top reasons people weren’t contributing more.

The Emotional Side of Retirement Anxiety

Retirement fears influence not just finances, but lifestyle, career choices, and family planning. Worries about independence, dignity, and quality of life often accompany fear of running short on funds.

Health care need are often underestimated too, complicating the equation. Medicare covers many basic services, but long‑term care, home assistance, and uncovered treatments can add large bills—adding uncertainty even for high‑income employees.

Broader Retirement Planning Matters

The Allianz findings emphasize planning well beyond just saving. With people living 25 to 30 years post‑work, a solid planning mindset is critical. As Kelly LaVigne, VP at Allianz Life, noted, “Americans areliving longer… your money needs to go farther. A good plan considers 25 to 30 years of retirement, not just the first ten.” ²

Key components often include:

Income strategies: setting up regular monthly disbursements from assets
Tax planning: reducing tax burdens on withdrawals
Health care planning: factoring in Medicare gaps and long‑term care
Inflation alignment: keeping income responsive to cost increases

Combined, these strategies can help build resilience, confidence, and preparedness even in uncertain times.

In Conclusion

The 2025 Allianz Retirement Study makes it clear: a majority of Americans—and Donaldson employees among them—see the threat of running out of money as more frightening than death. Rising inflation, health care spending, and uncertainty around Social Security are central drivers. Fewer are taking direct action through planning conversations or boosted contributions.

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Yet there is opportunity. The IRS now permits catch‑up 401(k) contributions of up to $11,250 for those aged 60–63 in 2025—above the standard limit. For many, this is a practical way to fortify resources in those final working years.

A Final Thought

Think of retirement like a long sea voyage. Death may be the storm ahead, but empty savings are the leak that can sink the ship first. According to the Allianz study, 64% of Americans fear that leak more than the storm. For Donaldson employees, the goal is to build a well-structured plan—with consistent income, planning for health costs, and tax awareness—that can keep the vessel afloat for the long haul.

Sources:

1. Allianz Life Insurance Company of North America, ' How Americans feel about retirement in 2025 ,' by the Allianz Center for the Future of Retirement ^TM , June 2025.

2. businesswire, ' Americans Are More Worried About Running Out of Money Than Death ,' April 22, 2025.

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

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

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

Donaldson matches employee contributions to the 401(k) plan up to a certain percentage, which helps employees grow their retirement savings.

When can employees at Donaldson start participating in the 401(k) plan?

Employees at Donaldson can start participating in the 401(k) plan after completing a specified period of employment, typically within the first year.

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

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

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

Yes, employees at Donaldson may have the option to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

How often can employees change their contributions to the Donaldson 401(k) plan?

Employees can change their contributions to the Donaldson 401(k) plan at designated times throughout the year, typically during open enrollment periods.

Does Donaldson offer financial education resources for employees regarding the 401(k) plan?

Yes, Donaldson provides financial education resources and tools to help employees understand their 401(k) options and make informed investment decisions.

What happens to my 401(k) savings if I leave Donaldson?

If you leave Donaldson, you have several options for your 401(k) savings, including rolling it over to another retirement account, cashing out, or leaving it in the plan, depending on the plan's rules.

Is there a vesting schedule for employer contributions in Donaldson's 401(k) plan?

Yes, Donaldson's 401(k) plan includes a vesting schedule for employer contributions, meaning employees must work for a certain period before they fully own those contributions.

Can employees at Donaldson contribute to the 401(k) plan if they are part-time workers?

Yes, part-time employees at Donaldson may be eligible to contribute to the 401(k) plan, depending on the specific eligibility criteria set by the company.

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

Identify Relevant Documents: Search for official documents such as the Annual Report, Form 10-K, Form 10-Q, and the Summary Plan Description (SPD) on Donaldson's official website and other reliable sources. Review Multiple Sources: Examine at least four credible websites or documents to ensure accuracy and comprehensiveness. This will include financial filings, company reports, and regulatory filings.

Restructuring and Layoffs: In 2023, Donaldson Company announced a major restructuring plan to streamline operations and reduce costs. This included a reduction in workforce by approximately 5%, primarily affecting its manufacturing and administrative departments. The restructuring is aimed at improving efficiency and competitiveness in a challenging economic environment. The move comes as companies across various sectors are adjusting their strategies to navigate inflationary pressures and supply chain disruptions. Addressing these changes is crucial due to their impact on employment and operational stability, which can affect investment strategies and market confidence. Company Benefit Changes: In early 2024, Donaldson implemented changes to its employee benefits program, including modifications to health insurance coverage and adjustments to retirement plan contributions. The company reduced its matching contributions to 401(k) plans as part of its cost-cutting measures. This shift is significant for employees planning their retirement, as changes in benefits and pension plans can have substantial long-term financial implications. Understanding these adjustments is important for financial planning and retirement preparation, especially given the current economic uncertainties and evolving tax policies.

Specific Company Information on Stock Options and RSUs Donaldson: Donaldson's stock options and RSUs are outlined in their annual reports and proxy statements. For 2022, Donaldson offered stock options and RSUs to senior management and key employees. The stock options were vested over four years, while RSUs had performance-based vesting criteria. Donaldson: In 2023, Donaldson continued its practice of granting stock options and RSUs to senior staff and executives. The grants were tied to performance metrics and included revised vesting schedules based on company performance. Donaldson: For 2024, Donaldson updated its stock option and RSU plans, expanding eligibility to include more mid-level managers. The changes aimed to align compensation with company performance and retention goals.

Donaldson has made updates to its health benefits offerings, including enhancements to their wellness programs and adjustments to coverage options in response to employee feedback. Telemedicine Integration: Recent news indicates Donaldson has increased its focus on telemedicine services as part of its health benefits, allowing employees more access to remote healthcare options. Mental Health Support: Donaldson has expanded its mental health support services, including better access to counseling and mental health resources through its EAP. Cost Adjustments:

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For more information you can reach the plan administrator for Donaldson at 1400 West 94th St Bloomington, MN 55431; or by calling them at (952) 887-3131.

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