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Block 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 Block employees who are developing a retirement strategy.

Seven in ten Block 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.

Block 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 purpose of Block's 401(k) Savings Plan?

The purpose of Block's 401(k) Savings Plan is to provide employees with a tax-advantaged way to save for retirement.

How can employees at Block enroll in the 401(k) Savings Plan?

Employees at Block can enroll in the 401(k) Savings Plan through the company’s HR portal during the enrollment period or after they meet eligibility requirements.

Does Block offer a company match for the 401(k) contributions?

Yes, Block offers a company match for employee contributions to the 401(k) Savings Plan, which helps employees maximize their retirement savings.

What types of contributions can employees make to Block's 401(k) Savings Plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and possibly catch-up contributions if they are age 50 or older in Block's 401(k) Savings Plan.

What is the vesting schedule for Block's 401(k) company match?

Block has a specific vesting schedule for the company match, which typically requires employees to work for a certain number of years before they fully own the matched funds.

Can Block employees take loans against their 401(k) Savings Plan?

Yes, Block allows employees to take loans against their 401(k) Savings Plan, subject to certain terms and conditions outlined in the plan documents.

What investment options are available in Block's 401(k) Savings Plan?

Block's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

How often can Block employees change their contribution amounts to the 401(k) Savings Plan?

Block employees can typically change their contribution amounts to the 401(k) Savings Plan at any time, subject to the plan’s rules.

Is there an auto-enrollment feature in Block's 401(k) Savings Plan?

Yes, Block may have an auto-enrollment feature that automatically enrolls eligible employees in the 401(k) Savings Plan at a default contribution rate.

What is the minimum age requirement for Block employees to participate in the 401(k) Savings Plan?

The minimum age requirement for Block employees to participate in the 401(k) Savings Plan is usually 21 years old, though this can vary based on specific plan provisions.