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Ciena 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 Ciena employees who are developing a retirement strategy.

Seven in ten Ciena 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.

Ciena 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 Ciena 401(k) Savings Plan?

The Ciena 401(k) Savings Plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or after-tax basis.

How can I enroll in the Ciena 401(k) Savings Plan?

Employees can enroll in the Ciena 401(k) Savings Plan by completing the enrollment process through the company’s benefits portal or by contacting the HR department for assistance.

What types of contributions can I make to the Ciena 401(k) Savings Plan?

Ciena allows employees to make pre-tax contributions, Roth (after-tax) contributions, and catch-up contributions if they are age 50 or older.

Is there a company match for contributions to the Ciena 401(k) Savings Plan?

Yes, Ciena offers a company match for employee contributions to the 401(k) Savings Plan, which helps enhance your retirement savings.

What is the maximum contribution limit for the Ciena 401(k) Savings Plan?

The maximum contribution limit for the Ciena 401(k) Savings Plan is subject to IRS regulations, which can change annually. Employees should refer to the plan documents for the most current limits.

When can I start withdrawing funds from my Ciena 401(k) Savings Plan?

Employees can typically start withdrawing funds from their Ciena 401(k) Savings Plan at age 59½, though there are specific conditions under which earlier withdrawals may be allowed.

What investment options are available in the Ciena 401(k) Savings Plan?

The Ciena 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

Can I take a loan against my Ciena 401(k) Savings Plan?

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

What happens to my Ciena 401(k) Savings Plan if I leave the company?

If you leave Ciena, you have several options for your 401(k) Savings Plan, including rolling it over to another retirement account, cashing it out, or leaving it in the Ciena plan if eligible.

Are there any fees associated with the Ciena 401(k) Savings Plan?

Yes, there may be administrative and investment fees associated with the Ciena 401(k) Savings Plan. Employees can review the plan’s fee disclosure for detailed information.

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

In 2024, Ciena announced a restructuring plan that includes a reduction of its workforce by approximately 5%. The company is also reviewing its employee benefits structure to align with its new business strategy. Additionally, changes are being considered for pension and 401(k) plans to manage costs effectively.