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Crafting Your Ideal Retirement Income Plan: A Guide for Lincoln Electric Holdings Employees

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Healthcare Provider Update: Lincoln Electric Holdings utilizes the Affordable Care Act (ACA) marketplace for its healthcare provision, catering primarily to its employees and retirees through various health insurance plans. As we approach 2026, Lincoln Electric Holdings employees are likely to face significant increases in healthcare costs. With the expiration of enhanced federal premium subsidies, many individuals could see their out-of-pocket ACA premiums surge by over 75%, according to industry projections. This scenario, compounded by overall rising medical expenses, presents a perfect storm for employees needing to navigate their healthcare finances more strategically in light of these anticipated changes. Click here to learn more

It's important for you to be involved in the retirement  income planning process even

if you're married.  While you may plan to be married forever,  many  women

end up single at some point in their  lives due to divorce or death of a spouse.

 

More women are working and taking charge of their own retirement planning than ever before. What does retirement from Lincoln Electric Holdings mean to you? Do you dream of traveling? Pursuing a hobby? Volunteering your time, or starting a new career or business? Simply enjoying more time with your grandchildren? Whatever your goal, you'll need a retirement income plan that's designed to support the retirement lifestyle that you envision, and minimize the risk that you'll outlive your savings.

When Will You Retire From Lincoln Electric Holdings?

Establishing a target age is important because the time at which you retire from Lincoln Electric Holdings will significantly affect how much you need to save. For example, if you retire from Lincoln Electric Holdings early at age 55 as opposed to waiting until age 67, you'll shorten the time you have to accumulate funds by 12 years, and you'll increase the number of years that you'll be living off of your retirement savings. We'd also like our Lincoln Electric Holdings clients to consider:

  • The longer you delay your retirement from Lincoln Electric Holdings, the longer you can build up tax-deferred funds in your IRAs and Lincoln Electric Holdings-sponsored plans such as 401(k)s, or accrue benefits in a traditional pension plan if you're lucky enough to be covered by one.
  • Medicare generally doesn't start until you're 65. Does Lincoln Electric Holdings provide post-retirement medical benefits? Are you eligible for coverage if you retire early from Lincoln Electric Holdings? Do you have health insurance coverage through your spouse's employer? If not, you may have to look into COBRA or a private individual policy — which could be expensive.
  • You can begin receiving your Social Security retirement benefit as early as age 62. However, your benefit may be 25% to 30% less than if you waited until full retirement age. Conversely, if you delay your Lincoln Electric Holdings retirement past full retirement age, you may be able to increase your Social Security retirement benefit.
  • If you work part-time during retirement, you'll be earning money and relying less on your retirement savings, leaving more of your savings to potentially grow for the future (and you may also have access to affordable health care).
  • For our Lincoln Electric Holdings clients who are married, and you and your spouse are both employed and nearing retirement age, think about staggering your retirements. If one spouse is earning significantly more than the other, then it usually makes sense for that spouse to continue to work in order to maximize current income and ease the financial transition into retirement.

How Long Will Retirement Last When You Leave Lincoln Electric Holdings?

We all hope to live to old age, but a longer life means that you'll have even more years of retirement to fund. The problem is particularly acute for women, who generally live longer than men. To guard against the risk of outliving your savings, you'll need to estimate your life expectancy. You can use government statistics, life insurance tables, or life expectancy calculators to get a reasonable estimate of how long you'll live. Experts base these estimates on your age, gender, race, health, lifestyle, occupation, and family history. But it's important for these Lincoln Electric Holdings clients to remember that these are just estimates. There's no way to predict how long you'll actually live, but with life expectancies on the rise, it's probably best to assume you'll live longer than you expect.

Project Your Retirement Expenses

Once you know when your retirement from Lincoln Electric Holdings will likely start, how long it may last, and the type of retirement lifestyle you want, it's time to estimate the amount of money you'll need to make it all happen. One of the biggest retirement planning mistakes you can make is to underestimate the amount you'll need to save by the time you retire from Lincoln Electric Holdings. It's often repeated that you'll need 70% to 80% of your pre-retirement income after you retire. However, the problem with this approach is that it doesn't account for your specific situation.

Focus on your actual expenses today and think about whether they'll stay the same, increase, decrease, or even disappear by the time you retire from Lincoln Electric Holdings. While some expenses may disappear, like a mortgage or costs for commuting to and from work, other expenses, such as health care and insurance, may increase as you age. If travel or hobby activities are going to be part of your retirement, be sure to factor in these costs as well. And don't forget to take into account the potential impact of inflation and taxes.

Identify Your Sources of Income

Once you have an idea of your retirement income needs, your next step is to assess how prepared you (or you and your spouse) are to meet those needs. In other words, what sources of retirement income will be available to you? Lincoln Electric Holdings may offer a traditional pension that will pay you monthly benefits. In addition, you can likely count on Social Security to provide a portion of your retirement income. Other sources of retirement income may include a 401(k) or other retirement plan, IRAs, annuities, and other investments.

The amount of income you receive from those sources will depend on the amount you invest, the rate of investment return, and other factors. Finally, if you plan to work during your retirement from Lincoln Electric Holdings, your earnings will be another source of income. When you compare your projected expenses to your anticipated sources of retirement income, you may find that you won't have enough income to meet your needs and goals. Closing this difference, or 'gap,' is an important part of your retirement income plan. In general, if you face a shortfall, you'll have five options: save more now, delay your Lincoln Electric Holdings retirement or work during retirement, try to increase the earnings on your retirement assets, find new sources of retirement income, or plan to spend less during retirement.

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Transitioning Into Retirement

Even after that special day comes, you'll still have work to do. You'll need to carefully manage your assets so that your retirement savings will last as long as you need them to.

  • We suggest that our Lincoln Electric Holdings clients review their portfolios regularly. Traditional wisdom holds that retirees should value the safety of their principal above all else. For this reason, some people shift their investment portfolio to fixed-income investments, such as bonds and money market accounts, as they enter retirement. The problem with this approach is that you'll effectively lose purchasing power if the return on your investments doesn't keep up with inflation. While it generally makes sense for your portfolio to become progressively more conservative as you grow older, it may be wise to consider maintaining at least a portion in growth investments.
  • Spend wisely. You want to be careful not to spend too much too soon. This can be a great temptation, particularly early in retirement. A good guideline is to make sure your annual withdrawal rate isn't greater than 4% to 6% of your portfolio. (The appropriate percentage for you will depend on a number of factors, including the length of your payout period and your portfolio's asset allocation.) Remember that if you whittle away your principal too quickly, you may not be able to earn enough on the remaining principal to carry you through the later years.
  • Understand your retirement plan distribution options. Most pension plans pay benefits in the form of an annuity. For our Lincoln Electric Holdings clients who are married, you generally must choose between a higher retirement benefit that ends when your spouse dies or a smaller benefit that continues in whole or in part to the surviving spouse. A financial professional can help you with this difficult, but important, decision.
  • Consider which assets to use first. For many retirees, the answer is simple in theory: withdraw money from taxable accounts first, then tax-deferred accounts, and lastly, tax-free accounts. By using your tax-favored accounts last and avoiding taxes as long as possible, you'll keep more of your retirement dollars working for you. However, we'd like to remind our Lincoln Electric Holdings clients that this approach isn't right for everyone. And don't forget to plan for required distributions. You must generally begin taking minimum distributions from Lincoln Electric Holdings retirement plans and traditional IRAs when you reach age 72, whether you need them or not. Plan to spend these dollars first in retirement.*
  • Consider purchasing an immediate annuity. Annuities are able to offer something unique — a guaranteed income stream for the rest of your life or for the combined lives of you and your spouse (although that guarantee is subject to the claims-paying ability and financial strength of the issuer). The obvious advantage in the context of retirement income planning is that you can use an annuity to lock in a predictable annual income stream, not subject to investment risk, that you can't outlive.** Unfortunately, there's no one-size-fits-all when it comes to retirement income planning. A financial professional can review your circumstances, help you sort through your options, and help develop a plan that's right for you.

According to the Society of Actuaries, in 2019, a 65-year-old woman in excellent health has a 53% chance of living to age 90, compared to a 42% chance for a similarly healthy man. *Due to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, required minimum distributions (RMDs) are waived in 2020. **Generally, annuity contracts have fees and expenses, limitations, exclusions, holding periods, termination provisions, and terms for keeping the annuity in force. Most annuities have surrender charges that are assessed if the contract owner surrenders the annuity.

 

 

 

 

What type of retirement savings plan does Lincoln Electric Holdings offer?

Lincoln Electric Holdings offers a 401(k) retirement savings plan for its employees.

Does Lincoln Electric Holdings match employee contributions to the 401(k) plan?

Yes, Lincoln Electric Holdings provides a matching contribution to employee contributions made to the 401(k) plan.

What is the maximum contribution limit for employees in the Lincoln Electric Holdings 401(k) plan?

The maximum contribution limit for employees in the Lincoln Electric Holdings 401(k) plan is determined by IRS regulations, which may change annually.

Can employees of Lincoln Electric Holdings choose between different investment options in their 401(k) plan?

Yes, employees of Lincoln Electric Holdings can choose from a variety of investment options within the 401(k) plan.

When can employees of Lincoln Electric Holdings start participating in the 401(k) plan?

Employees of Lincoln Electric Holdings can typically start participating in the 401(k) plan after completing a specified period of service, as outlined in the plan documents.

Is there a vesting schedule for the employer match in the Lincoln Electric Holdings 401(k) plan?

Yes, Lincoln Electric Holdings has a vesting schedule for employer matching contributions, which means employees must work for a certain period before they fully own those contributions.

How can Lincoln Electric Holdings employees access their 401(k) account information?

Lincoln Electric Holdings employees can access their 401(k) account information online through the plan's designated website or by contacting the plan administrator.

Are loans available from the Lincoln Electric Holdings 401(k) plan?

Yes, Lincoln Electric Holdings may allow employees to take loans against their 401(k) balances, subject to the plan's terms and conditions.

What happens to the 401(k) plan if an employee leaves Lincoln Electric Holdings?

If an employee leaves Lincoln Electric Holdings, they have several options regarding their 401(k) plan, including rolling it over to another retirement account, cashing it out, or leaving it in the Lincoln Electric Holdings plan if eligible.

Does Lincoln Electric Holdings offer any financial education resources for 401(k) participants?

Yes, Lincoln Electric Holdings provides financial education resources and tools to help employees make informed decisions about their 401(k) savings.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Lincoln Electric Holdings offers a comprehensive employee retirement program that includes a 401(k) plan known as the "Lincoln Electric Company Employee Savings Plan." This plan allows eligible employees to save for retirement through tax-deferred contributions. Additionally, Lincoln Electric provides a profit-sharing component tied to both company and individual performance. For employees hired before January 1, 2006, Lincoln Electric offers a pension program known as "The Lincoln Electric Company Retirement Annuity Program (RAP)." This pension plan is a defined benefit plan where the company contributes on behalf of its employees. Years of service and age requirements vary depending on the specific plan provisions. Employees qualify for the 401(k) plan based on their employment status and tenure, with the pension formula structured around an average final pay calculation.
Lincoln Electric Holdings reported strong financial performance through 2023, with significant growth in net sales and income across multiple quarters. Despite challenges, the company avoided layoffs, maintaining a longstanding commitment to workforce stability. The company continues to experience growth, with no major layoffs reported since the 1950s, highlighting its resilience in a challenging economy​ (Lincoln Electric)​ (Lincoln Electric). Given the current economic environment, it is essential to recognize Lincoln Electric’s strategies for maintaining employee stability while navigating complex global challenges, including tax changes, regulatory adjustments, and market uncertainties. These elements make it crucial to address these developments as they impact employee benefits and future financial planning for stakeholders.
Lincoln Electric Holdings offered stock options to key executives in 2022, 2023, and 2024. RSUs were also offered to mid-level managers, incentivizing long-term performance and loyalty. Dividend equivalents accrued on vested RSUs during these years. Stock options and RSUs were primarily granted to managerial and executive-level employees, making them accessible to those with significant roles in the company’s operations.
Lincoln Electric Holdings has consistently prioritized healthcare for its employees, offering comprehensive benefits that reflect both their commitment to employee well-being and the evolving healthcare landscape. In 2022, Lincoln Electric introduced enhancements to their Health Savings Accounts (HSAs), allowing employees to benefit from tax-advantaged medical savings. The company emphasizes flexibility, offering multiple health plans tailored to meet diverse needs. Key healthcare terms include PPO (Preferred Provider Organization) plans and HRA (Health Reimbursement Arrangement), which support the company’s push toward preventive care and cost-efficient medical coverage​ (Lincoln Electric)​ (Lincoln Electric). This focus is essential given the economic uncertainties and rising healthcare costs in recent years. In addition to their robust offerings, Lincoln Electric has adjusted its approach to healthcare in response to broader economic and political trends. The company's employee healthcare news in 2023 highlighted adjustments to premiums and deductible structures, reflecting rising inflation and political discussions around healthcare reform​ (Home Page)​ (Lincoln Electric). Addressing these changes is crucial for the company to remain competitive while ensuring employees maintain access to essential care. These shifts in Lincoln Electric's benefits package underscore the importance of adapting healthcare strategies in light of fluctuating tax laws and market conditions.
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For more information you can reach the plan administrator for Lincoln Electric Holdings at , ; or by calling them at .

https://ir.lincolnelectric.com/news/news-details/2024/Lincoln-Electric-Awarded-on-TIMEs-Americas-Best-Mid-Size-Companies-2024-List/default.aspx https://ir.lincolnelectric.com/news/news-details/2024/Lincoln-Electric-Reports-Fourth-Quarter-and-Full-Year-2023-Results/default.aspx https://www.lincolnelectric.com/en/ https://www.kiplinger.com/ https://jobs.lincolnelectric.com/content/benefits/ https://ir.lincolnelectric.com/news/news-details/2023/Lincoln-Electric-Reports-Third-Quarter-2023-Results/default.aspx https://ir.lincolnelectric.com/news/news-details/2024/Lincoln-Electric-Reports-Fourth-Quarter-and-Full-Year-2023-Results/default.aspx https://www.globenewswire.com/en/news-release/2022/10/27/2542703/28734/en/Lincoln-Electric-Reports-Third-Quarter-2022-Results.html https://ir.lincolnelectric.com/overview/default.aspx https://ir.lincolnelectric.com/news/news-details/2024/Lincoln-Electric-Reports-Fourth-Quarter-and-Full-Year-2023-Results/default.aspx https://ir.lincolnelectric.com/financials/annual-reports/default.aspx https://www.marketscreener.com/quote/stock/LINCOLN-ELECTRIC-HOLDINGS-9863/news/Lincoln-Electric-Reports-Fourth-Quarter-and-Full-Year-2023-Results-45961624/ https://www.globenewswire.com/news-release/2022/10/14/2534564/0/en/Lincoln-Electric-Signs-Definitive-Agreement-to-Acquire-Fori-Automation-Inc.html https://www.inddist.com/mergers-acquisitions/news/22498639/lincoln-electric-agrees-to-acquire-fori-automation-for-427m https://www.streetinsider.com/Corporate+News/Lincoln+Electric+%28LECO%29+Acquires+RedViking/23008177.html https://leaders.com/news/hiring/lincoln-electric-has-avoided-layoffs-for-70-years-heres-how-they-do-it/ https://jobmarketmonitor.com/2012/12/28/lincoln-electric-cleveland-profit-sharing-and-no-layoffs-for-64-years/ https://leaders.com/news/hiring/lincoln-electric-has-avoided-layoffs-for-70-years-heres-how-they-do-it/

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