Danaher Corporation Corporate Benefits Department 6095 Parkland Blvd., Suite 310 Mayfield Hts., OH 44124 First-Class Mail Presorted U.S. Postage PAID San Bruno, CA Permit No. 655 What s Inside How Much Will You Need for Retirement? Fuel Your Future With the Danaher Savings Plan 5 Not-So-Obvious Retirement Considerations Keep Your Beneficiaries Current What You Know Can Help Your Savings Grow! Learn how to save for the future you want. And don t miss the tips that can boost your bottom line and bring retirement that much closer! This newsletter provides information that can help you get the most from the savings plans Danaher offers: Danaher Savings Plan (DSP) for non-union, U.S. associates Retirement & Savings Plan (RSP) for union, U.S. associates
Small Changes Can Make a Big Difference No matter how close you are to retirement, small changes in your savings strategy can help you achieve the retirement of your dreams. See how Danaher s savings plans can help you meet your financial goals. Then, set a goal to do one small thing to boost your savings.
How Much Will You Need for Retirement? The answer is: It depends on what you ve saved and how comfortably you want to live once you stop working. These days, the rule of thumb is that most people will need 70% 80% of their pre-retirement income after they finish working. If you have an annual salary of $50,000, this means you ll need $35,000 $40,000 a year. To achieve this, you would need to save 10 12 times your annual pay, or $500,000 $600,000 (including your company contributions from Danaher). 1 This may seem daunting, but like most things, it s a lot easier to do when you take it step by step: STEP 1 STEP 2 STEP 3 Contribute regularly to your savings. Get the full company match. Review your investments regularly and work with Fidelity to adjust them, as needed. Once you ve got the basics down, you re ready to take your savings to the next level. The 10% Savings Goal: Small Steps To Max Out Your Savings Many financial experts recommend that you put away 10% 15% of your pay for retirement. Begin by contributing enough to receive Danaher s matching contribution, then gradually raise your contribution amount to 10% or higher. Consider raising your plan contributions once a year by an amount that s easy to handle, on a date that s easy to remember say, 2% on your birthday. Thanks to the power of compounding (the earnings on your earnings), even small, regular increases in your plan contributions can make a big difference over time. Be sure to keep the IRS limits in mind when choosing how much to contribute. Let s look at Kate and Sophia. These hypothetical twin sisters do almost everything together. Both work for the same company, earn the same salary ($30,000 a year) and start participating in the same retirement plan at age 35. In fact, just about the only difference is their savings approach. Kate contributes 2% of her pay each year. Her salary rises 3% a year (and her contributions along with it), and her investments earn 6% a year, on average. So, after 30 years of diligent saving, Kate reaches retirement with a nest egg worth $68,461. Sophia gets the same pay raises, saves just as diligently and has the same investments as her sister except for one thing: She starts contributing 2%, but raises her rate by 1% each year on her birthday until she reaches 10%. Then, she keeps saving that 10% for the next 22 years, until she retires. After 10 years Kate has $9,227 After 10 years Sophia has $28,491 After 20 years Kate has $28,923 After 20 years Sophia has $113,022 Kate contributes 2% of her pay each year Sophia contributes 2% and adds 1% each year until she reaches 10% After 30 years Kate has $68,461 After 30 years Sophia has $285,725 Source: The 10% Savings Goal, Transamerica Retirement Solutions Corp., 2013. This example is hypothetical and does not represent the performance of any fund. Regular investing does not guarantee a profit or protect against a loss in a declining market. Past performance does not guarantee future results. Initial tax savings on contributions and earnings are deferred until distribution. You should evaluate your ability to continue saving in the event of a prolonged market decline, unexpected expenses or an unforeseeable emergency. Securities offered by Transamerica Investors Securities Corporation (TISC), 440 Mamaroneck Avenue, Harrison, N.Y. 10528. Transamerica Retirement Solutions and TISC are affiliated companies.
Fuel Your Future With Your Savings Plan Most people don t want to work forever. And you won t have to, with the help of Danaher s savings plans, which can fund the future you envision for yourself and your family. Whether you re contributing to the Danaher Savings Plan (DSP) or the Danaher Retirement & Savings Plan (RSP), Danaher s 401(k) savings plans offer an employer match that helps you grow your savings even faster! The More You Save, The More You Earn You decide how much to contribute to the savings plan. You can contribute 1% 75% of your pay up to $18,500 in 2018 if you re a U.S. associate enrolled in the DSP or RSP. 2 If you re at least 50 years old, you can also make catch-up contributions to your DSP or RSP, subject to IRS limits. The 2018 catch-up limit is $6,000 for U.S. associates. 2 Once you elect to make catch-up contributions to your savings plan, your election will remain in place unless you request a change. You can change your contribution rate or catch-up election at any time by visiting NetBenefits at 401k.com or by calling Fidelity at 800-835-5092. Save Two Ways With the DSP 1. Pretax Make pretax contributions (they re deducted from your paycheck before income taxes), so you ll pay less in taxes each pay period. Ultimately, you ll pay taxes on this money when you use it during retirement and may be in a lower tax bracket. 2. Roth (after-tax) Contribute after-tax dollars, and pay no taxes when you use this money or any related earnings from it during retirement as long as you re making a qualified withdrawal. 3 To determine which contribution type makes the most sense for you or if you should make both log in to 401k.com and use the Roth 401(k) Modeler (select Tools from the Menu button on the home page). 1 How Much Money Do I Need to Retire? AARP The Magazine, February/March 2015. 2 For DSP participants, this limit applies to traditional pretax and Roth (after-tax) contributions, combined. Since Roth plans are not available to RSP participants, the limit applies only to traditional pretax contributions. 3 A qualified withdrawal is one that can be taken five tax years after the year of the first Roth contribution and after the participant is 59½ years old, has become disabled or has died. Don t Miss the Match! Yes, saving money for the future can be challenging. But when free money is your reward, it s a little easier to give up a few of those extras you may be tempted to splurge on. Making a conscious effort to save enough to get the full company match each year can mean tens of thousands of extra dollars in the long run. If you re a DSP participant, Danaher matches 100% on the first 3% you save, plus 50% on the next 2% you save. This means that if you contribute at least 5% of your pay, you ll get a full 4% match from Danaher. And after one year of service, Danaher may also make retirement contributions of 2% of your eligible pay each pay period, whether you re contributing or not. So, in addition to your own contributions, you can get up to 6% of your annual pay in matching and company retirement contributions from Danaher. Associate Contribution % (Sum of Pretax & Roth 401k) 2 Danaher Match % 0% 0% 1% 1% 2% 2% 3% 3% 4% 3.5% 5% or greater 4% If you re a union associate participating in the RSP, you should check with your local human resources department to learn the terms of your matching contribution and base company retirement contribution (if any), under your collective bargaining agreement. Can You Afford to Pass Up Free Money? If you re among the 17% of Danaher employees who aren t contributing enough to receive the full match from Danaher, you re missing a way to grow your savings even faster.
5 Not-So-Obvious Retirement Considerations Since 90% of Danaher associates contribute to their retirement plan, there s a 9-in-10 chance that you do. But your contributions alone won t set you up for retirement success. Check out these five tips that can get you closer to realizing your goals. 5 Set it and forget it isn t for everything. Yes, you may want to set up automatic escalation for your annual savings contributions, but when it comes to your retirement savings, you need to stay hands-on. Remember that your contributions should accommodate changes in your personal circumstances, pay and responsibilities so you ll be prepared, come retirement day. Make a point of reviewing your retirement plan contribution level (deferral percentage) and asset mix (stocks, bonds, annuities, etc.) at least once a year, especially if you ve experienced a change that affects your health, income or work. 4 Customize your asset allocation based on your personal circumstances. Just as you have to tailor your contributions to accommodate your personal circumstances, you also need to be mindful of your situation when you choose the investments in your retirement portfolio. Typically, younger savers can afford to take on more risk. But no matter your age, you ll want to select investments with risk levels and growth rates you re comfortable with. 3 Plan now if you expect to need a fairly high income in retirement. Reasons you would need more money could include dealing with a known health condition or raising a grandchild for whom you hadn t planned to be responsible. Once you calculate the expenses involved, you ll be able to figure out how much additional income you need to cover them. After you review your retirement asset mix, you can adjust it to generate that additional income. 2 Keep track of all your retirement accounts and potential sources of retirement income. Most people work for several employers over the course of their careers and may have retirement accounts with all of them. If you haven t already, make sure you have records from each and that they have your current contact and beneficiary information. You ll want to include those accounts when you assess your retirement assets. Depending on your circumstances, you may even want to move or consolidate the accounts, or do something else altogether with the money. 1 Don t get complacent, even if your retirement savings are already sizeable. If you ve already saved a significant amount toward your retirement, you won t need such a high performance (with a corresponding high risk) from your retirement assets. Still, you can t afford to be too hands-off, even with a sizeable nest egg. Any changes in your personal circumstances or significant market fluctuations will likely mean you ll need to adjust your investments and the level of your savings. Previous economic downturns have destroyed retirement savings, dashing the hopes of even diligent savers to recover and have a retirement. Stay vigilant, and should you see yourself in a similar situation, consider changing the assets in your plan or increasing your contributions.
Keep Your Beneficiaries Current Fidelity makes it easy to make changes to your account and to get the most from your savings plan! Part of planning for your future includes ensuring your designated beneficiaries remain current. Make it a priority to keep your designated savings plan beneficiaries up to date it will ease the way for your loved ones. To review or make changes to your beneficiary election, log in to your account at 401k.com. If you ve used the online feature to designate your beneficiary in the past, you can make additional changes online. If you previously completed a paper form to designate your beneficiary, you ll need to call Fidelity at 800-835-5092 to make any changes. No beneficiary on file? Log in to 401k.com and make your election there. Or call Fidelity at 800-835-5092 and request a beneficiary designation form to be mailed to you. Once you complete it, make sure you sign the form before returning it to Fidelity. Want to designate a beneficiary other than your spouse? If so, your beneficiary designation will need to include your spouse s notarized signature to approve your election. When you experience a major life event, like marriage, divorce, the birth of a child or a death in the family, be sure to adjust your beneficiary elections, as necessary. Two Easy Ways to Engage With Your 401(k) Connect to Fidelity via mobile app or through the NetBenefits website at 401k.com. To get the NetBenefits mobile app, visit itunes or Google Play. You can also access 401k.com using a web browser on either your mobile device or computer. There, you ll find tools and resources to help you get the most out of your savings plan. Retirement planning: How prepared are you for retirement? See how much retirement income you have, and how long your money may last. College savings: Learn how much college may cost for your dependents and how much you may need to save. Investment strategy: Start with an in-depth analysis of your portfolio, then explore investment approaches that align with your goals. Full View : Use this tool to track and manage all your finances, including your investments, retirement accounts, bank accounts, mortgages, credit cards and more. Roth 401(k) Modeler: If you re a DSP participant, you can use this tool to see how your take-home pay will differ if you make pretax contributions to your savings plan, versus Roth after-tax contributions. If you have no designated beneficiary on file with Fidelity at the time of your death, your account will be transferred according to the plan s default rules as follows: If you re married, your account will go to your spouse. If you re not married, it will go to your estate. About this newsletter Nothing in this newsletter is intended to create or imply a contract of employment. If questions arise, all decisions will be based on the actual plan provisions of the applicable plan documents, which in all cases will be the final authority. Copies of the plan documents, with all amendments, are available for your inspection during regular business hours. Although the Company intends to continue this Plan, Danaher s Appointing Committee generally has the right to amend the plan. Danaher s Board of Directors does retain certain amendment rights, including the right to terminate the plan, at any time for any reason. The information contained herein has been provided by Danaher Corporation and is solely the responsibility of Danaher Corporation and its Benefits Committee. Printed December 2017