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Addressing the potential risks of extended-term care expenses may be one of the biggest financial challenges for Cerner employees who are developing a retirement strategy.
Seven in ten Cerner 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.
Cerner 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 Cerner 401(k) Savings Plan?
The Cerner 401(k) Savings Plan is a retirement savings plan that allows eligible employees to save for retirement through pre-tax and/or Roth contributions.
How can Cerner employees enroll in the 401(k) Savings Plan?
Cerner employees can enroll in the 401(k) Savings Plan by accessing the Cerner benefits portal during the enrollment period or upon hire.
What types of contributions can Cerner employees make to the 401(k) Savings Plan?
Cerner employees can make pre-tax contributions, Roth contributions, and after-tax contributions to the 401(k) Savings Plan.
Does Cerner offer a company match for the 401(k) Savings Plan?
Yes, Cerner offers a company match for employee contributions to the 401(k) Savings Plan, subject to specific terms and conditions.
What is the maximum contribution limit for Cerner employees participating in the 401(k) Savings Plan?
The maximum contribution limit for Cerner employees is determined by IRS regulations and may change annually; employees should check the latest IRS guidelines for the current limit.
When can Cerner employees start withdrawing from their 401(k) Savings Plan?
Cerner employees can typically start withdrawing from their 401(k) Savings Plan upon reaching age 59½, or earlier under certain circumstances such as financial hardship.
Are there any fees associated with the Cerner 401(k) Savings Plan?
Yes, there may be fees associated with the Cerner 401(k) Savings Plan, including administrative fees and investment-related fees. Employees should review the plan documents for details.
Can Cerner employees take a loan against their 401(k) Savings Plan?
Yes, Cerner allows employees to take a loan against their 401(k) Savings Plan, subject to specific terms and conditions outlined in the plan documents.
How can Cerner employees manage their 401(k) investments?
Cerner employees can manage their 401(k) investments by logging into the benefits portal and selecting from various investment options available in the plan.
What happens to a Cerner employee's 401(k) Savings Plan if they leave the company?
If a Cerner employee leaves the company, they can choose to leave their funds in the plan, roll them over to another retirement account, or withdraw the funds, subject to tax implications.
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