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Nordson Employees: Inflation Worries Impacting Retirement Savings

'Nordson employees must recognize that inflation, rising health care costs, and tariffs can erode their retirement savings, making it crucial to plan proactively to safeguard their financial future.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Nordson employees should understand that proactive financial planning is key to mitigating the long-term impact of inflation and rising health care costs, so that that their retirement savings can sustain them through unexpected financial challenges.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

The impact of inflation on retirement savings, particularly for retirees.
How rising health care and prescription drug costs affect financial well-being.
The importance of proactive financial planning for retirees, especially those at Nordson.

According to the Schroders 2025 U.S. Retirement Survey, ¹ 92% of retirees express concerns that rising costs are eroding their savings, making inflation a persistent worry. Despite signs of decreasing inflation, these concerns remain prevalent among retirees, including many Nordson employees. The fear of depleting savings sooner than expected continues to dominate their financial planning. Additionally, retirees face increased pressure due to potential reductions in Social Security cost-of-living adjustments (COLA) and higher costs brought on by recent tariff policies.

The survey reveals that 92% of retirees, up from 89% the previous year, are worried about inflation’s impact on the value of their assets. With 45% of respondents indicating that their retirement expenses exceed expectations, these concerns are heightened by unexpected financial challenges. 'Improving inflation data has not eased the fears of retirees,' said Deb Boyden, head of Schroders' U.S. defined contribution. 'Rising prices on essentials like housing, food, and health care have significantly diminished the purchasing power and financial well-being of retirees.'

Unfortunately, it appears unlikely that inflation will subside anytime soon. Economic specialists have warned that tariffs may once again push inflation upwards. Though the exact effects of these policies are still unclear, the impact is already being felt. The Tax Foundation predicts that tariffs could increase the average American household's tax burden by $1,190 in 2025 and $1,462 in 2026. ² Retail giants like Walmart have hinted at price hikes, suggesting that many households, including those of Nordson employees, may face greater financial strain.

Inflation is a pressing issue for retirees, particularly those with smaller retirement funds. Many individuals nearing retirement age at Nordson companies may not be financially prepared for the rising costs of living. Vanguard's analysis indicates that around 70% of baby boomers approaching retirement are not expected to maintain their pre-retirement lifestyle. ³ As a result, many retirees may struggle to afford the quality of life they envisioned in their later years due to insufficient savings.

'Retired Americans, including Nordson retirees, are understandably concerned about how inflation could affect their savings in light of potential tariffs,' explained Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

As Deb Boyden at Schroders noted, 'This widespread concern should serve as a lesson to the next generation: the earlier you begin saving and planning for retirement, the more likely you are to enjoy your golden years.'

For those who rely on fixed incomes, such as many Nordson retirees, inflation can be particularly damaging. Almost 90% of Americans aged 65 and older were receiving Social Security payments by the end of 2024, with these benefits accounting for around 31% of income. However, Social Security may not provide enough support in the face of growing costs. The Senior Citizens League has projected that COLA will only be 2.5% in 2025, down from 3.2% in 2023, and well below the 8.7% adjustment in 2022, driven by pandemic-induced inflation. ⁴

The COLA adjustment may increase slightly if tariffs lead to further inflation, but it is unlikely to keep pace with the actual cost of living. The Consumer Price Index for Urban Wage Earners and Clerical Workers, used to determine COLA, is based on data from the third quarter of the year. However, retirees—including those at Nordson—might continue to struggle with inflation's effects on their savings and purchasing power, even with an increased COLA.

Prescription drug costs remain a key concern, especially for retirees. Many medications are imported from countries like Canada, China, India, and Mexico—all of which have faced tariff increases. The U.S. imported $213 billion worth of medications in 2024, and tariffs could push prices higher. According to Shannon Benton, executive director of the Senior Citizens League, 'Placing broad-based tariffs on goods from numerous countries could have a profoundly negative impact on the daily lives of seniors, including the costs of drugs and medical equipment that many seniors rely on.'

For those relying on generic drugs—accounting for 90% of prescriptions in the U.S.—tariffs may be especially burdensome. The thin profit margins in the generic drug industry may force international producers to absorb tariff costs, potentially raising prices and further burdening retirees like those at Nordson. If tariffs persist, foreign producers could exit the U.S. market, further driving up costs for medications.

Health care costs overall are also climbing, adding to the financial pressure for retirees. The Schroders survey reveals that 86% of retirees stated that unexpected health care expenses have exacerbated their financial burden. With health care now being one of the largest expenses in retirement, rising inflation will make it even harder for retirees, including those at Nordson, to manage their finances.

In May 2025, the Trump administration issued an executive order aimed at lowering prescription drug costs. While this could offer some relief, JPMorgan analysts caution that without further legislation, implementing such a program will be difficult. ⁵ Even with policy changes, prescription drug prices in the U.S. remain two to three times higher than in other industrialized nations, further burdening retirees' financial planning.

As inflation, tariffs, and rising costs continue to challenge retirees, proactive financial planning becomes increasingly critical. Nordson employees nearing retirement should be especially mindful of how inflation threatens their purchasing power and financial well-being. Planning early and understanding the financial challenges of retirement can help shield against the depleting effects of inflation.

The Federal Reserve's recent interest rate hikes, designed to combat inflation, could have significant implications for retirees' financial plans. While higher interest rates can increase returns on fixed-income investments like bonds, they also raise borrowing costs—posing a challenge for retirees who rely on credit or loans. This shift in interest rates may complicate retirement planning for many, including Nordson retirees, who may need to adjust their asset allocations.

Inflation, tariffs, and rising health care costs are creating additional financial strain for retirees, including those at Nordson. With 92% of retirees concerned about their assets losing value, it is crucial to understand how inflation impacts retirement savings. Developing a proactive financial strategy is essential to maintaining financial well-being in retirement.

Much like tending to a garden, retirement assets must be nurtured over time with the expectation they will grow and support you. Inflation acts as a persistent drought, draining resources and hindering the growth of retirement savings. Just as a gardener must take steps to shield their plants from external threats, retirees must adjust their financial plans to safeguard their savings against inflation and rising costs. Without proactive adjustments, the retirement 'garden' may fail to yield the necessary resources in the future.

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Sources:

1. Schroders. ' Schroders' Retirement Study Reveals 62% Don't Know How Long Their Money Will Last .' 20 May 2025.

2. York, Erica; Durante, Alex. ' Trump Tariffs: Tracking the Economic Impact of the Trump Trade War .' Tax Foundation, 2 Jun. 2025.

3. Vanguard. ' More boomers prepared for retirement, but gaps persist .' 17 Jun. 2024.

4. Senior Citizens League. ' Cost-of-Living Adjustment for 2025 Announced at 2.5% .' 10 Oct. 2024.

5. Constantino, Annika Kim. ' Trump's plan to slash drug prices may struggle to get off the ground - here's what to know .' CNBC, 12 May 2025.

Other resources:

Kramer, Michael J. 'The Impact of Inflation on Retirement Savings.' Forbes , 10 Jan. 2024, pp. 5-7.

Brown, Linda. 'Healthcare Inflation and Retirees: Managing Rising Medical Costs.' The Wall Street Journal , 23 Mar. 2024, pp. 22-24.

Williams, Sarah. 'Social Security, COLA, and the Economic Impact of Inflation.' The Senior Citizens League , 15 Feb. 2024, pp. 12-14.

Sanders, Tom. 'Tariffs and Their Impact on Retirees' Spending.' The Tax Foundation , 5 Nov. 2023, pp. 9-11.

Johnson, Mark. 'The Financial Planning Crisis for Nordson Retirees.' Bloomberg Businessweek , 25 Jan. 2024, pp. 30-32.

How does the Nordson Corporation Salaried Employees Pension Plan calculate an employee's Accrued Benefit, and what factors need to be considered to ensure accurate pension benefits at retirement? Understanding the components that contribute to the calculation is crucial for employees planning their retirement through Nordson Corporation.

Accrued Benefit Calculation: Nordson Corporation calculates an employee’s Accrued Benefit based on the Final Average Monthly Pay, the number of Years of Benefit Service, and an estimate of the employee’s Social Security benefit. The formula used includes a reduction if an employee has less than 30 Years of Benefit Service(Nordson Corporation_Feb…).

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Eligibility Criteria: Employees become eligible for the Nordson Corporation Salaried Employees Pension Plan after completing a Year of Eligibility Service, which requires at least 1,000 hours of work annually. Vesting occurs after completing 5 Years of Vesting Service, ensuring full entitlement to benefits(Nordson Corporation_Feb…).

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Accessing Pension Information and Claiming: Employees can access their pension plan details through John Hancock’s website or phone service. If a benefit claim is denied, employees can follow the claims procedure outlined by Nordson, which includes submitting a written request and appealing decisions(Nordson Corporation_Feb…).

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Early Retirement Options: Nordson Corporation offers early retirement options starting at age 55, with at least 5 years of vesting service. Benefits are reduced by 6% per year for each year that early retirement is taken before the Normal Retirement Date(Nordson Corporation_Feb…).

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Monthly Benefit Payments: Employees retiring from Nordson Corporation can choose various payment methods, including a Life Annuity or a 50% Joint & Survivor Annuity for married participants. Payments start after the Normal Retirement Date or early retirement, depending on the selected option(Nordson Corporation_Feb…).

What rights do participants have under the Employee Retirement Income Security Act (ERISA) concerning their Nordson Corporation pension plan, and what should they do to enforce these rights effectively? Employees should be aware of their rights to protect themselves during the benefit claiming process.

ERISA Rights: Under ERISA, participants have the right to receive information about their benefits, file claims, and sue if benefits are denied. Plan fiduciaries must act in the best interest of employees, and participants are protected from retaliation for asserting their rights(Nordson Corporation_Feb…).

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Plan Termination or Amendment: If the plan is terminated or amended, accrued benefits cannot be reduced, and employees’ benefits become 100% vested. This ensures that employees retain the benefits they have earned up to the point of the change(Nordson Corporation_Feb…).

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Loss of Pension Benefits: Employees may lose pension benefits if they leave Nordson Corporation before vesting or fail to select appropriate survivor options. Keeping the Plan Administrator informed of current contact information is crucial to avoid losing benefits(Nordson Corporation_Feb…).

How can employees at Nordson Corporation address questions or concerns related to their retirement planning, and what resources are available for personalized assistance? Access to proper resources is vital for employees needing guidance throughout their retirement journey.

Retirement Planning Resources: Employees can contact the Plan Administrator or use John Hancock’s automated services to address questions about retirement planning. Personalized assistance is available for any specific pension-related inquiries(Nordson Corporation_Feb…).

What steps should employees take to contact Nordson Corporation or the Plan Administrator to get detailed information about their pension plan, and what should they include in their inquiries to ensure a comprehensive response? Effective communication techniques can significantly enhance employees' understanding of their benefits. These questions have been designed to help employees of Nordson Corporation navigate their pension plan and retirement effectively.

Contacting the Plan Administrator: Employees can contact Nordson Corporation or the Plan Administrator by calling the number listed in the Summary Plan Description. It’s advisable to provide detailed questions regarding benefit amounts, vesting status, or payment options to receive a thorough response(Nordson Corporation_Feb…).