Why More Donaldson Employees Are Considering Social Security Early — And How Medicare Changes Play a Role
Healthcare Provider Update: Healthcare Provider for Donaldson
Donaldson Company, a renowned global manufacturer of filtration systems, primarily relies on UnitedHealthcare as their healthcare provider.
Potential Healthcare Cost Increases in 2026
As we look ahead to 2026, healthcare costs are anticipated to rise significantly, particularly in the context of the Affordable Care Act (ACA). Factors contributing to these increases include the potential expiration of enhanced federal premium subsidies and the overall surge in medical costs, with some states experiencing hikes exceeding 60%. A striking analysis indicates that more than 22 million marketplace enrollees could face an eye-popping 75% rise in out-of-pocket premiums if these subsidies are not renewed. The combination of higher medical expenses and aggressive rate increases from major insurers paints a concerning picture for consumers navigating their healthcare coverage decisions in the near future.
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'Donaldson employees weighing when to file for Social Security should consider both current health care costs and long-term income needs, so they can stay adaptable as retirement unfolds.' — Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
'Donaldson employees can benefit from thoughtfully coordinating Social Security timing with health care expenses so their retirement income stays aligned with their evolving needs over time.' — Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
How Social Security filing age affects retirement income.
How Medicare expenses factor into when retirees claim benefits.
Why emotional concerns are shifting filing behavior for many Americans.
Written by Wealth Enhancement advisors Kevin Landis, CPA and Wesley Boudreaux
Advisors in the retirement-income space have long suggested that retirees consider delaying filing for Social Security benefits. For those with a full retirement age (FRA) of 67, waiting until age 70 can result in monthly payments that are around 24% higher.
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And for those with an FRA of 66, the increase if one waits until age 70 is closer to 32%.
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Donaldson employees nearing retirement often hear this same message.
However, new national data indicates a growing number of Americans plan to claim Social Security before age 70. Cost pressures and health care related issues are major influences in this trend.
The Retirees’ Reality
Today’s retirees face a very different environment than those in past decades, including less access to traditional pensions, rising health care costs, and mounting everyday living expenses. In the private sector, only about 15% of workers still have access to defined benefit pensions,
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affecting many households and Donaldson employees.
According to retirement consultant Wesley Boudreaux, 'most retirees are not choosing to claim early for the sake of it.” Instead, rising medical and living costs are driving earlier benefit decisions because of cash flow pressures.
One major factor? Health care. Nearly 39% of out-of-pocket health care spending by Medicare beneficiaries was equivalent to Social Security payments received, on average, in 2022.
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Medicare Advantage: A Key Planning Factor
Additionally, shifts in Medicare Advantage plans have left many retirees unsure about upcoming costs. Benefit structures can vary significantly by year or by region, causing cost surprises that Donaldson workers and their families may need to plan for.
“We are already seeing clients paying more for health care than expected,” said Kevin Landis, CPA. “When medical expenses rise, Social Security often becomes the first lever people pull to handle that burden.”
This is why coordinating Social Security filing decisions with Medicare coverage choices remains important, particularly when plans change annually.
“This is the intersection of Social Security and health care planning,” Landis adds. “Changes in one can influence the other.”
Emotional Considerations Also Matter
Money matters aren’t the only reason retirees claim earlier. Concerns about the future of Social Security have caused many to look for the emotional comfort of taking benefits sooner, including some Donaldson workers preparing for retirement.
While benefits are expected to continue—even if trust fund reserves decline in the 2030s—worries about future payouts can play a role.
“It’s not just about math,” Boudreaux explains. “People want control and stability in retirement, even if that means receiving less over time.”
Finding the Right Approach for You
Whether filing early is a good fit depends a lot on health, cash flow needs, and longer-term retirement goals. Thoughtful planning helps maintain flexibility, rather than driving you to respond under pressure.
“The best approach balances today’s needs with what lies ahead,” Landis says. “And that begins with understanding how Medicare and Social Security interact.”
Need Help Reviewing Your Options?
The Retirement Group, a division of Wealth Enhancement, helps individuals evaluate Medicare electives, analyze Social Security filing alternatives, and design retirement income strategies based on personal goals—including guidance tailored to those employed by Donaldson.
📞 Call (800) 900-5867 before your next enrollment period to schedule a Social Security & Health Care Review.
Work toward confidence in your long-term retirement income decisions.
About the Authors
Wesley Boudreaux and Kevin Landis, CPA, provide retirement income and tax planning guidance through Wealth Enhancement, helping people make informed choices about Social Security, Medicare, and financial well-being.
1. Social Security Administration.
When to Start Receiving Retirement Benefits: Publication No. 05-10147
. May 2024. U.S. Government Publishing Office, Washington D.C.
2. Topoleski, John J., Elizabeth A. Myers, and Sylvia L. Bryan.
Worker Participation in Employer-Sponsored Pensions: Data in Brief and Recent Trends (R43439)
. Congressional Research Service, 18 Sept. 2024.
3. Medicare Payment Advisory Commission.
Report to the Congress: Medicare Payment Policy – Chapter 11: The Medicare Advantage Program: Status Report
. Mar. 2025, medpac.gov/wp-content/uploads/2025/03/Mar25_Ch11_MedPAC_Report_To_Congress_SEC.pdf.
4. Board of Trustees, Social Security.
2025 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds
. 30 June 2025. U.S. Government Publishing Office, Washington D.C.
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:
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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