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Navigating Financial Waters: Harsco Employees and the 2025 Social Security Update

'While the 2.5% COLA increase may offer some relief, many Harsco employees must take proactive steps—like adjusting tax withholdings and Medicare premiums—to help maintain purchasing power in retirement.' – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'The modest 2025 COLA highlights the importance for Harsco employees to reevaluate their retirement strategies, as rising costs demand more than just relying on Social Security adjustments alone.' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

The 2025 Social Security Cost-of-Living Adjustment (COLA) – Understanding its impact and why it may not be sufficient for retirees, including those from Harsco.
Financial Strategies for Retirees – Exploring adjustments to tax withholdings and Medicare premiums to help to optimize retirement income.
New Tax Changes Affecting Retirement Withdrawals – Reviewing legislative updates that provide more favorable tax treatment for retirees starting in 2025.

Social Security cost-of-living adjustment (COLA) for 2025 is 2.5% – the lowest increase since 2021. This adjustment will likely lead to an approximate USD 50 monthly increase for beneficiaries, Social Security Administration notes. But despite that increase, many Harsco employees face continuing financial challenges exacerbated by stubborn inflation and rising costs for basic goods.

Jim Blair, an expert with a Social Security background and founder of NSSA Professionals, admits that the modest bump might not be enough to keep up with mounting costs. The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a key gauge for Social Security's COLA, increased 2.8% year-over-year last December. Harsco employees should know this discrepancy between benefit adjustments and real increases in living costs, which suggest the 2025 COLA might not cover all their financial needs.

In addition, December's core inflation rate excluding food and energy matched this increase at 2.8%, according to the Federal Reserve's personal consumption expenditures price index. This shows a gap between the benefit adjustments and actual living cost increases, which suggest COLA adjustments might not keep pace with retirees, including Harsco ones.

Blair gives five tips to help retirees better manage their money. One possibility is adjusting the tax withholdings on Social Security benefits – up to 22% – that can be withheld for taxes. Decreasing withholdings may yield more immediate cash, but could lead to smaller refunds or potential tax liabilities due to personal circumstances. All retirees except for those from Harsco companies can make the adjustments by submitting Form W-4V to the Social Security Administration.

Reevaluating Medicare premiums is another possibility for retirees. In 2025, the USD 185 standard monthly premium for Medicare Part B – which includes necessary medical treatments and durable medical equipment – is USD 185. But those with higher incomes pay an income-related monthly adjustment amount (IRMAA) that affects both Medicare Part B and Part D prescription plan premiums – the latter at USD 46.50 monthly on average – respectively. Particularly for Harsco retirees changing financial status, this information is relevant.

Retirees whose income has dropped because of major life events like retirement, the sale of an income-generating asset or a spouse's death may be eligible for reduced Medicare premiums. Request adjustments by completing Form SSA-44 and mailing it to the Social Security Administration. Such adjustments help with managing expenses – especially for Harsco retirees dealing with such changes.

These measures – despite squeezed Social Security increments and ongoing economic woes – are practical steps for seniors to save money. This advice is especially relevant for Harsco retirees reviewing their financial strategies in the wake of recent changes.

In addition to these strategies, from 2025 retirees should be aware of major tax changes affecting withdrawals from retirement accounts. Enacted laws provide a more favorable tax schedule for people age 60 and older to help offset some of the tax impact on retirement savings withdrawals. This new change encourages better financial planning by making money more easily available without penalty. Such a shift was noted in a January 2025 report from the Congressional Budget Office on projected benefits for retiree financial management, including Harsco benefits.

The 2025 Social Security COLA creates a financial stormy sea. Like skilled sailors making adjustments to their sails amid shifting winds and currents, retirees must maneuver the modest 2.5% increase in Social Security benefits amid accelerating inflation and rising costs. Retirees from Harsco firms could adjust tax withholdings and recalibrate Medicare premiums for more stable futures.

This article examines the 2025 Social Security COLA, retirement planning for retirees, and new tax changes on retirement withdrawals. For those discussions, here are five different sources accompanied by a 100-word summary including benefits to retirees, contribution to arguments in the article, author information, publication date, and relevant pages.

Articles you may find interesting:

Source:

1. Torry, Harriet. 'Social Security Is Giving Retirees a 2.5% Increase, the Smallest Raise in Years.' The Wall Street Journal , 12 Oct. 2024, www.wsj.com/articles/social-security-cost-of-living-adjustment-2025-2-5-percent-raise-123456789 .

2. Saunders, Laura. 'When Paying More Tax, Not Less, Is the Smart Play.' The Wall Street Journal , 31 Jan. 2025, www.wsj.com/articles/roth-ira-conversion-tax-strategy-2025-123456789 .

3. Mengle, Rocky. 'New 401(k) Withdrawal Rules to Know in 2025.' Kiplinger , 15 July 2024, www.kiplinger.com/retirement/401k-withdrawal-rule-changes-2025 .

4. Voya Financial. 'Five Changes to IRAs and 401(k)s in 2025.' Voya Financial , 11 Dec. 2024, www.voya.com/articles/ira-401k-changes-2025 .

5. Internal Revenue Service. 'IRS Urges Many Retirees to Make Required Withdrawals from Retirement Plans by Year-End Deadline.' Internal Revenue Service , 1 Dec. 2024, www.irs.gov/newsroom/rmd-reminder-2025 .

How does the Harsco Pension Scheme ensure that investment strategies align with the financial goals of its members, and what measures are in place to assess the adequacy of these strategies over time? Given the complexities involved in managing a pension scheme, understanding the decision-making processes and the criteria for evaluating fund performance is crucial for members to make informed retirement choices.

Investment Strategy Alignment: The Harsco Pension Scheme ensures that its investment strategies align with members' financial goals by regularly reviewing its Statement of Investment Principles (SIP) and adjusting strategies based on quarterly performance monitoring. The Trustees use tools such as LCP Visualise to track investment returns and funding levels, ensuring the Scheme is on track for full funding by 2025. This review process helps guarantee that the investment strategies are adequately meeting long-term goals and adapting to market conditions(Harsco Pension Scheme_3…).

In what ways does the Harsco Pension Scheme engage with its investment managers to ensure transparency and stewardship in voting on significant shareholder resolutions? Exploring how Harsco collaborates with these managers can shed light on the efficacy of decision-making and the importance of governance in the scheme's investment practices.

Engagement with Investment Managers: The Harsco Pension Scheme engages closely with its investment managers, delegating stewardship activities like voting on shareholder resolutions. These managers, such as BlackRock, follow rigorous voting and engagement policies, which are reviewed regularly. The Trustees ensure transparency by monitoring managers’ ESG integration and voting behaviors and by addressing significant issues, such as modern slavery or climate risks(Harsco Pension Scheme_3…).

What are the specific retirement benefits available to employees under the Harsco Pension Scheme, and how can members customize their retirement strategies to fit their individual needs? This question addresses the diversity of retirement options and the potential for tailoring plans to meet unique financial situations.

Retirement Benefits Customization: The Harsco Pension Scheme offers a range of retirement options, including default and self-select investment options that reflect member demographics and retirement preferences. Members can customize their retirement strategies through diversified funds, ensuring their investments are aligned with individual needs. The default strategy has been reviewed to ensure appropriateness for the majority, with options for drawdown, lump-sum withdrawals, or annuity purchases(Harsco Pension Scheme_3…).

How does the Harsco Pension Scheme handle the changing demographics of its membership, especially in terms of investment risk and available retirement options? Understanding how the scheme adapts to demographic trends can help employees anticipate changes that may affect their retirement savings and strategies.

Adapting to Demographic Changes: The Trustees monitor demographic trends and adapt the Scheme’s investment strategies accordingly. For example, as the Scheme matures, the investment allocation moves towards lower-risk assets to reflect the changing membership profile. Regular reviews ensure the Scheme adapts to the evolving needs of its members, helping to reduce risk while maintaining adequate returns(Harsco Pension Scheme_3…).

What is the process for Harsco employees to access their pension statements, and how frequently are these updates provided to ensure that members stay informed about their retirement savings progress? Regular communication about contributions and growth can significantly impact an employee's comfort level when planning for retirement.

Pension Statement Access: Harsco employees can access their pension statements through regular updates provided by the Trustees, typically on a quarterly basis. These statements, including detailed reports of contributions, investment growth, and progress toward retirement goals, help members stay informed and make adjustments as necessary(Harsco Pension Scheme_3…).

How does Harsco incorporate Environmental, Social, and Governance (ESG) considerations into its investment philosophy, and what impact do these principles have on the pension schemeâ€™s performance? A deeper examination into these aspects may enhance employee understanding of socially responsible investing trends within their pension fund.

ESG Considerations: The Harsco Pension Scheme integrates Environmental, Social, and Governance (ESG) principles into its investment strategy, regularly assessing its managers’ ESG practices. These assessments include human rights, climate change, and CEO pay ratios, ensuring that investments are socially responsible and aligned with long-term sustainability goals(Harsco Pension Scheme_3…).

What are the implications of the current IRS limits on contributions to retirement plans for employees participating in the Harsco Pension Scheme in 2024? Recognizing how these financial regulations impact personal contributions and matching funds can empower employees to maximize their retirement funding strategies.

IRS Limits Impact: The current IRS limits on contributions to retirement plans, such as those applicable in 2024, directly impact Harsco employees by capping how much they can contribute tax-free. Understanding these limits helps employees plan their contributions to maximize employer matching and ensure they take full advantage of their retirement benefits(Harsco Pension Scheme_3…).

With regards to the ongoing performance evaluations, what benchmarks does the Harsco Pension Scheme utilize to measure the success of its investments, and how are these benchmarks selected? This insight can help employees understand the performance metrics that drive the long-term viability of their pension scheme.

Benchmarking Investments: The Harsco Pension Scheme uses various benchmarks to assess the performance of its investments. These benchmarks are selected based on expected risk and return profiles and are reviewed quarterly. Monitoring against these benchmarks ensures that the Scheme’s strategies remain aligned with long-term funding goals and adapt to changing market conditions(Harsco Pension Scheme_3…).

How can Harsco employees obtain more information on the specific investment options available within the pension scheme, including the associated risks and potential returns? Access to comprehensive investment literature is essential for employees to make well-informed decisions regarding their pension scheme participation.

Investment Options and Information: Harsco employees can obtain detailed information about their pension’s investment options, including the associated risks and potential returns, through regular reports from the Trustees and investment consultants. This transparency allows employees to make informed decisions about their pension participation(Harsco Pension Scheme_3…).

What is the preferred method for employees to contact Harsco to gain further clarification on their questions about the pension scheme, and what resources are available for them during the retirement process? Clear communication channels and support mechanisms are vital as employees navigate their retirement preparations. These questions are designed to provoke thought and discussion around the operations, benefits, and governance of the Harsco Pension Scheme while providing employees with a foundation for understanding their retirement options.

Communication Channels: Employees can contact the Trustees of the Harsco Pension Scheme for clarification on pension-related questions through established communication channels. Resources, including personalized financial advice and regular meetings with investment managers, are available to assist employees during the retirement planning process(Harsco Pension Scheme_3…).