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American National Group Employees: Navigating the Complexities of Extended Care Costs in Retirement

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

Seven in ten American National Group 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.

American National Group 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 type of retirement savings plan does American National Group offer to its employees?

American National Group offers a 401(k) retirement savings plan to its employees.

How can employees of American National Group enroll in the 401(k) plan?

Employees of American National Group can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

Does American National Group provide matching contributions to the 401(k) plan?

Yes, American National Group provides matching contributions to the 401(k) plan, subject to certain eligibility criteria.

What is the vesting schedule for employer contributions at American National Group?

The vesting schedule for employer contributions at American National Group typically follows a graded vesting schedule, which means employees earn ownership of the contributions over a period of time.

Can employees take loans against their 401(k) plans at American National Group?

Yes, employees may have the option to take loans against their 401(k) plans at American National Group, subject to the plan's terms and conditions.

What investment options are available in the American National Group 401(k) plan?

The American National Group 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can employees change their contribution amounts to the 401(k) plan at American National Group?

Employees at American National Group can typically change their contribution amounts on a quarterly basis or as specified in the plan documents.

What is the minimum contribution percentage required for the 401(k) plan at American National Group?

The minimum contribution percentage for the 401(k) plan at American National Group is usually outlined in the plan documents, often starting at 1% or 2%.

Does American National Group allow employees to make catch-up contributions to their 401(k) plans?

Yes, American National Group allows eligible employees aged 50 and older to make catch-up contributions to their 401(k) plans.

What happens to an employee's 401(k) balance if they leave American National Group?

If an employee leaves American National Group, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the plan if allowed.

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For more information you can reach the plan administrator for American National Group at One Moody Plaza Galveston, TX 77550; or by calling them at (409) 763-4661.