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Addressing the potential risks of extended-term care expenses may be one of the biggest financial challenges for Amica Mutual Insurance employees who are developing a retirement strategy.
Seven in ten Amica Mutual Insurance 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.
Amica Mutual Insurance 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.
GenWorth.com, 2022
ACL.gov, 2022
What type of retirement plan does Amica Mutual Insurance offer to its employees?
Amica Mutual Insurance offers a 401(k) retirement savings plan to its employees.
Does Amica Mutual Insurance provide a company match for its 401(k) contributions?
Yes, Amica Mutual Insurance provides a company match for employee contributions to the 401(k) plan.
At what age can employees of Amica Mutual Insurance start participating in the 401(k) plan?
Employees of Amica Mutual Insurance can typically start participating in the 401(k) plan as soon as they meet eligibility requirements, usually at age 21.
How can Amica Mutual Insurance employees enroll in the 401(k) plan?
Employees can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
What investment options are available in the Amica Mutual Insurance 401(k) plan?
The Amica Mutual Insurance 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
Can employees of Amica Mutual Insurance take loans against their 401(k) savings?
Yes, Amica Mutual Insurance allows employees to take loans against their 401(k) savings under certain conditions.
What is the vesting schedule for the company match at Amica Mutual Insurance?
The vesting schedule for the company match at Amica Mutual Insurance typically follows a graded vesting schedule, which means employees gradually earn ownership of the match over time.
How often can employees of Amica Mutual Insurance change their 401(k) contribution amounts?
Employees of Amica Mutual Insurance can change their 401(k) contribution amounts at any time, subject to plan rules.
What is the maximum contribution limit for the Amica Mutual Insurance 401(k) plan?
The maximum contribution limit for the Amica Mutual Insurance 401(k) plan is set by the IRS and may change annually; employees should check the latest limits for accuracy.
Does Amica Mutual Insurance offer any educational resources regarding the 401(k) plan?
Yes, Amica Mutual Insurance provides educational resources and workshops to help employees understand their 401(k) plan options and investment strategies.
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