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Navigating Financial Waters: Parker-Hannifin Employees and the 2025 Social Security Update

'While the 2.5% COLA increase may offer some relief, many Parker-Hannifin 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 Parker-Hannifin 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 Parker-Hannifin.
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 Parker-Hannifin 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. Parker-Hannifin 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 Parker-Hannifin 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 Parker-Hannifin 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 Parker-Hannifin 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 Parker-Hannifin 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 Parker-Hannifin 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 Parker-Hannifin 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 Parker-Hannifin 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 can employees of Parker-Hannifin Corporation effectively calculate their pension estimates, and what factors should they consider when determining their expected retirement benefits from the Plan? This question aims to explore the details behind Final Average Monthly Compensation, vesting service, and the impact of different retirement ages on the monthly benefit calculations.

Employees can estimate their pension benefits using a compensation-based formula. They should consider factors such as Final Average Monthly Compensation (based on their highest five consecutive years of earnings), years of benefit service, and the Social Security Covered Compensation. Employees can use the pension estimation tools available at www.YourParkerBenefits.com to calculate their retirement benefits considering different retirement ages(Parker-Hannifin_Corpora…).

What are the eligibility requirements for employees of Parker-Hannifin Corporation to participate in the retirement benefits Plan, and how does the completion of vesting service affect access to defined benefits? This inquiry will delve into the specifics of one-year vesting service requirements, definitions of full-time versus part-time status, and any exceptions that may apply.

To be eligible for the retirement plan, employees must complete one year of vesting service. Vesting service counts employment periods with Parker and includes specific leaves of absence. Full-time, part-time, and temporary employees are eligible. Exceptions exist, such as for co-operative employees, who do not become plan participants(Parker-Hannifin_Corpora…).

In what ways does Parker-Hannifin Corporationâ€™s retirement plan integrate with Social Security benefits, and how might this impact employees' overall retirement income planning? This question should encourage discussion on how both sources of income can be strategically coordinated for optimal financial stability in retirement.

Pension benefits under the plan are paid in addition to Social Security. The integration involves calculating benefits based on both Final Average Monthly Compensation and Social Security Covered Compensation. This coordination ensures that employees have a combined source of income during retirement(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

What options do employees of Parker-Hannifin Corporation have for electing different forms of retirement benefit payments, and how should they weigh the pros and cons of each option? This question will provide insight into the various payment methods, including Joint and Survivor Options versus Life Only benefits, and factors that influence these decisions.

Employees can choose between multiple forms of benefit payments, including a Life Only benefit or Joint and Survivor Options (50%, 75%, or 100%). The decision on which option to choose should depend on factors like marital status, desired survivor benefits, and potential reduction in monthly payments for electing survivor options(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

How does the retirement benefits Plan at Parker-Hannifin Corporation ensure that employees are informed about any potential amendments or changes that might affect their retirement benefits? This question focuses on the communication strategies employed by the company to relay critical information to employees regarding plan modifications and participant rights.

Parker-Hannifin uses formal communication methods to ensure employees are informed about plan changes, such as amendments or terminations. This includes notifications through the Benefits Service Center and relevant updates provided on the Parker Benefits website(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

What implications does a Qualified Domestic Relations Order (QDRO) have for employees of Parker-Hannifin Corporation, and how can participants ensure compliance with legal requirements regarding benefits division in divorce situations? This question seeks an understanding of the legal framework surrounding QDROs and the steps employees should take to protect their benefits.

A QDRO allows for the division of pension benefits in cases of divorce or legal separation. Parker-Hannifin employees can work with QDRO Consultants to ensure compliance with legal requirements. The order will direct the plan to distribute a portion of the employee’s pension to an alternate payee, such as a spouse or dependent(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

How should employees of Parker-Hannifin Corporation approach the retirement process if they are currently receiving Long Term Disability benefits, and what adjustments might they need to consider during this transition? This question aims to clarify how the overlap of disability and retirement benefits is managed under the Plan.

Employees receiving Long-Term Disability (LTD) benefits will have their LTD payments reduced by the amount of any pension benefits they start receiving. Employees should coordinate their retirement process with the Benefits Service Center to ensure a smooth transition from LTD to retirement benefits(Parker-Hannifin_Corpora…).

What options for early retirement benefits are available to employees of Parker-Hannifin Corporation, and what critical factors should they consider before deciding to retire before the normal retirement age? This question will highlight the age and service requirements and the impact of early retirement on monthly benefit amounts.

Employees can retire early starting at age 55 with at least 10 years of vesting service. However, benefits are reduced for each month before the normal retirement age of 65, at a rate of 0.5% per month. Early retirement also includes options like Temporary Pension Supplement to cover medical expenses(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

What steps should Parker-Hannifin Corporation employees take to ensure they receive accurate and timely benefit payments upon retirement, including any necessary applications or paperwork? This question covers the procedural aspects of commencing benefit distributions and highlights the importance of adhering to federal regulations regarding distributions.

Employees must apply for retirement benefits through the Benefits Service Center by completing necessary forms, including proof of age and marital status. Benefits generally begin the month following the retirement date or the completion of the application, and federal regulations require benefits to start no later than April 1 following age 70½(Parker-Hannifin_Corpora…)(Parker-Hannifin_Corpora…).

How can employees of Parker-Hannifin Corporation contact the Total Rewards Department to get personalized assistance regarding their retirement benefits and related inquiries? This question focuses on the specific contact details and resources available for employees seeking further clarification on their retirement planning and benefits management.

For personalized assistance, employees can contact the Benefits Service Center at 1-800-992-5564. This service provides answers to questions about retirement benefits, plan participation, and pension estimates(Parker-Hannifin_Corpora…).