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DoorDash 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 DoorDash employees who are developing a retirement strategy.

Seven in ten DoorDash 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.

DoorDash 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 DoorDash?

The 401(k) plan at DoorDash is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary before taxes.

Does DoorDash match employee contributions to the 401(k) plan?

Yes, DoorDash offers a matching contribution to the 401(k) plan, which helps employees grow their retirement savings faster.

How can DoorDash employees enroll in the 401(k) plan?

DoorDash employees can enroll in the 401(k) plan through the employee benefits portal during the enrollment period or after they become eligible.

What are the eligibility requirements for DoorDash's 401(k) plan?

To be eligible for DoorDash's 401(k) plan, employees typically need to meet certain criteria, such as being a full-time employee and reaching a specific duration of employment.

Can DoorDash employees change their contribution percentage to the 401(k) plan?

Yes, DoorDash employees can change their contribution percentage to the 401(k) plan at any time through the employee benefits portal.

What investment options are available in DoorDash's 401(k) plan?

DoorDash's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles tailored to different risk levels.

Is there a vesting schedule for DoorDash's 401(k) matching contributions?

Yes, DoorDash has a vesting schedule for its matching contributions, meaning employees must work for a certain period before they fully own the matched funds.

How can DoorDash employees access their 401(k) account information?

DoorDash employees can access their 401(k) account information online through the designated retirement plan administrator's website.

What happens to a DoorDash employee's 401(k) if they leave the company?

If a DoorDash employee leaves the company, they can choose to roll over their 401(k) balance to a new employer's plan, an IRA, or cash out, subject to tax implications.

Are there any fees associated with DoorDash's 401(k) plan?

Yes, there may be administrative fees and investment-related expenses associated with DoorDash's 401(k) plan, which are disclosed in the plan documents.

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

I found information about DoorDash's employee benefits, including details on their 401(k) plan. DoorDash provides a 401(k) plan for its employees, which includes a matching contribution of 2% of the employee's salary. However, DoorDash does not offer a traditional pension plan. The 401(k) plan is the primary retirement savings vehicle, and employees are eligible to participate once they meet specific criteria, typically after one year of service. The sources reviewed did not provide a detailed pension formula or specific company acronyms related to retirement plans, as DoorDash seems to focus more on its 401(k) offerings rather than traditional pension plans. The information was gathered from DoorDash's official resources and employee reviews on benefits websites

In 2023, DoorDash announced layoffs affecting approximately 1,250 employees as part of cost-cutting measures due to economic challenges. The severance package includes 17 weeks of pay and extended health benefits. Additionally, DoorDash is piloting a portable benefits savings program to help workers manage health insurance and emergency savings, indicating shifts in how the company approaches employee benefits. This restructuring reflects broader economic pressures, highlighting the need for companies to adapt their financial strategies amid changing market conditions.

For DoorDash, the company offers both stock options and Restricted Stock Units (RSUs) to employees as part of their compensation packages. The company's stock options are often granted with a four-year vesting schedule, and the RSUs generally vest over a similar period. Eligibility for these stock options and RSUs is typically limited to full-time employees, including executive-level positions. In 2022, DoorDash continued to offer these benefits, with notable grants to key executives. The same trend persisted in 2023 and 2024, with some adjustments to the vesting schedules and the value of the stock options and RSUs reflecting the company's stock performance during these years.

Health Insurance Stipends: Under California's Proposition 22, DoorDash provides healthcare stipends to qualifying Dashers based on their active hours. For instance, those averaging 15 to 25 active hours per week receive $735 per quarter, while those exceeding 25 hours receive $1,470. This stipend is part of their effort to ensure that Dashers can access health insurance despite being classified as independent contractors. Portable Benefits Program: In 2024, DoorDash launched a pilot program in Pennsylvania, introducing a portable benefits savings plan. This program allows eligible Dashers to allocate a portion of their earnings toward health insurance, retirement savings, and paid time off. The portability of these benefits is designed to cater to the flexible nature of gig work, ensuring that workers can maintain their benefits even as they move between jobs. Merchant Health Benefits Initiative: DoorDash has also expanded its focus on healthcare benefits for employees of its restaurant partners. The "Merchant Benefits & Discounts" program, launched recently, offers discounted healthcare, mental health services, and other resources to small businesses. This initiative is aimed at helping restaurants attract and retain staff by providing access to affordable benefits typically available only to larger companies. Collaboration with Stride Health: DoorDash has partnered with Stride Health to assist Dashers in selecting and managing their health insurance plans. This collaboration ensures that Dashers have access to personalized healthcare options that fit their needs, further supporting their independent contractor workforce with essential benefits.

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For more information you can reach the plan administrator for DoorDash at 303 2nd St, Suite 800 San Francisco, CA 94107; or by calling them at (855) 973-1040.

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