Healthcare Provider Update: Offers medical insurance through Aetna, dental via MetLife, and vision through VSP, with HSA and FSA options and wellness support from Lyra and Maven 1. As ACA premiums rise and subsidies expire, AvalonBays employer-sponsored plans with flexible spending and mental health support offer a more stable and cost-effective alternative to marketplace coverage Click here to learn more
Addressing the potential risks of extended-term care expenses may be one of the biggest financial challenges for AvalonBay Communities employees who are developing a retirement strategy.
Seven in ten AvalonBay Communities 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.
AvalonBay Communities 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 is the 401(k) plan offered by AvalonBay Communities?
The 401(k) plan offered by AvalonBay Communities is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.
Does AvalonBay Communities match employee contributions to the 401(k) plan?
Yes, AvalonBay Communities offers a matching contribution to employee 401(k) contributions, helping employees save more for retirement.
What is the maximum contribution limit for the AvalonBay Communities 401(k) plan?
The maximum contribution limit for the AvalonBay Communities 401(k) plan follows the IRS guidelines, which are updated annually.
When can employees of AvalonBay Communities enroll in the 401(k) plan?
Employees of AvalonBay Communities can enroll in the 401(k) plan during their initial eligibility period, which is typically upon hire or during an open enrollment period.
What investment options are available in the AvalonBay Communities 401(k) plan?
The AvalonBay Communities 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
How can employees of AvalonBay Communities access their 401(k) account information?
Employees of AvalonBay Communities can access their 401(k) account information through the plan's online portal or by contacting the plan administrator.
Is there a vesting schedule for the employer match in the AvalonBay Communities 401(k) plan?
Yes, AvalonBay Communities has a vesting schedule for the employer match, which determines how much of the matching contributions employees are entitled to based on their years of service.
Can employees of AvalonBay Communities take loans against their 401(k) savings?
Yes, employees of AvalonBay Communities may be able to take loans against their 401(k) savings, subject to the plan's terms and conditions.
What happens to my AvalonBay Communities 401(k) if I leave the company?
If you leave AvalonBay Communities, you have several options for your 401(k), including rolling it over to an IRA or another employer's plan, or cashing it out.
Are there any fees associated with the AvalonBay Communities 401(k) plan?
Yes, there may be fees associated with the AvalonBay Communities 401(k) plan, which can include administrative fees and investment-related fees.
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