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Akamai Technologies Employees: Navigating the Complexities of Extended Care Costs in Retirement

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Addressing the potential risks of extended-term care expenses may be one of the biggest financial challenges for Akamai Technologies employees who are developing a retirement strategy.

Seven in ten Akamai Technologies employees over age 65 can expect to need extended care services at some point in their lives. So understanding the various types of extended care services – and what those services may cost – is critical as you consider your retirement approach.

What Is Extended Care?

Extended care is not a single activity. It refers to a variety of medical and non–medical services needed by those who have a chronic illness or disability – most commonly associated with aging.

Extended care can include everything from assistance with activities of daily living – help dressing, bathing, using the bathroom, or even driving to the store – to more intensive therapeutic and medical care requiring the services of skilled medical personnel.

Extended care may be provided at home, at a community center, in an assisted living facility, or in a skilled nursing home. And extended care is not exclusively for the elderly; it is possible to need extended care at any age.

How Much Does Extended Care Cost?

Extended care costs vary state by state and region by region. The 2021 national average for care in a skilled care facility (single occupancy in a nursing home) was $108,405 a year. The national average for care in an assisted living center (single occupancy) was $54,000 a year. Home health aides cost a median of $27 per hour, but that rate may increase when a licensed nurse is required.

What Are the Payment Choices?

Often, extended care is provided by family and friends. Providing care can be a burden, however, and the need for assistance tends to increase with age.

Akamai Technologies employees who would rather not burden their family and friends have two main choices for covering the cost of extended care: they can choose to self-insure or they can purchase extended care insurance.

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Many self-insure by default – simply because they haven't made other arrangements. Those who self-insure may depend on personal savings and investments to fund any extended care needs. The other approach is to consider purchasing extended care insurance, which can cover all levels of care, from skilled care to custodial care to in-home assistance.

When it comes to addressing your extended care needs, many look to select a strategy that may help them protect assets, preserve dignity, and maintain independence. If those concepts are important to you, consider your approach to extended care.

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What is the 401(k) plan offered by Akamai Technologies?

The 401(k) plan at Akamai Technologies is a retirement savings plan that allows employees to save a portion of their salary on a pre-tax or Roth basis.

How does Akamai Technologies match employee contributions to the 401(k) plan?

Akamai Technologies offers a company match for employee contributions to the 401(k) plan, typically matching a percentage of the employee's contributions up to a certain limit.

When can employees at Akamai Technologies enroll in the 401(k) plan?

Employees at Akamai Technologies can enroll in the 401(k) plan during their initial onboarding or during the annual open enrollment period.

What investment options are available in the Akamai Technologies 401(k) plan?

The Akamai Technologies 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles tailored to different risk tolerances.

Is there a vesting schedule for the Akamai Technologies 401(k) plan?

Yes, Akamai Technologies has a vesting schedule for its 401(k) contributions, meaning that employees must work for a certain period before they fully own the company’s matching contributions.

Can employees take loans against their 401(k) plans at Akamai Technologies?

Yes, Akamai Technologies allows employees to take loans against their 401(k) plans, subject to specific terms and conditions.

What happens to my 401(k) if I leave Akamai Technologies?

If you leave Akamai Technologies, you can choose to roll over your 401(k) balance into an IRA or another employer’s retirement plan, cash out, or leave it in the Akamai plan if eligible.

How can employees at Akamai Technologies change their 401(k) contribution percentage?

Employees can change their 401(k) contribution percentage by accessing their account through the Akamai Technologies benefits portal and following the instructions provided.

Does Akamai Technologies provide financial planning resources for employees regarding the 401(k) plan?

Yes, Akamai Technologies offers financial planning resources and workshops to help employees understand their 401(k) options and make informed investment decisions.

Are there any fees associated with the Akamai Technologies 401(k) plan?

Yes, there may be administrative and investment fees associated with the Akamai Technologies 401(k) plan, which are disclosed in the plan documents.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

News: Akamai Technologies recently announced a restructuring plan to streamline operations, which includes some workforce reductions. The company is focusing on enhancing its core business areas while reducing costs. Important: Addressing this news is crucial due to the current economic climate, which impacts job stability and financial planning. Understanding these changes helps employees and investors adjust their strategies in a shifting market.

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For more information you can reach the plan administrator for Akamai Technologies at 150 Broadway Cambridge, MA 2142; or by calling them at (617) 444-3000.