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Cadence Design Systems 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 Cadence Design Systems employees who are developing a retirement strategy.

Seven in ten Cadence Design Systems 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.

Cadence Design Systems 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 Cadence Design Systems offer?

Cadence Design Systems offers a 401(k) retirement savings plan to help employees save for their future.

Does Cadence Design Systems match employee contributions to the 401(k) plan?

Yes, Cadence Design Systems provides a matching contribution to employee 401(k) accounts, subject to certain limits.

What is the eligibility requirement to participate in Cadence Design Systems' 401(k) plan?

Employees at Cadence Design Systems are eligible to participate in the 401(k) plan after completing a specified period of employment.

Can employees of Cadence Design Systems choose how their 401(k) contributions are invested?

Yes, employees of Cadence Design Systems can choose from a variety of investment options for their 401(k) contributions.

What is the maximum contribution limit for the Cadence Design Systems 401(k) plan?

The maximum contribution limit for the Cadence Design Systems 401(k) plan is determined by IRS regulations and may change annually.

Does Cadence Design Systems allow for catch-up contributions in the 401(k) plan?

Yes, Cadence Design Systems allows employees aged 50 and older to make catch-up contributions to their 401(k) accounts.

When can employees of Cadence Design Systems start making contributions to their 401(k) plan?

Employees of Cadence Design Systems can start making contributions to their 401(k) plan after they meet the eligibility requirements.

Is there a vesting schedule for the employer match in the Cadence Design Systems 401(k) plan?

Yes, Cadence Design Systems has a vesting schedule that determines when employees fully own the employer match contributions.

How often can employees of Cadence Design Systems change their 401(k) contribution amounts?

Employees of Cadence Design Systems can change their 401(k) contribution amounts during designated enrollment periods or as permitted by the plan.

What happens to my 401(k) account if I leave Cadence Design Systems?

If you leave Cadence Design Systems, you have several options for your 401(k) account, including rolling it over to another retirement account or cashing it out.

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

Cadence Design Systems announced a reduction in workforce affecting approximately 4% of their global employees. This decision is part of a broader strategy to streamline operations and focus on core growth areas.

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For more information you can reach the plan administrator for Cadence Design Systems at 2655 Seely Avenue San Jose, CA 95134; or by calling them at +1 408-943-1234.