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Mastercard Employees: Navigating the Complexities of Extended Care Costs in Retirement

Healthcare Provider Update: Mastercard's healthcare provider is Aetna, which offers a variety of health insurance plans to its employees, including comprehensive coverage for medical, dental, and vision needs. As we look ahead to 2026, significant healthcare cost increases are on the horizon for many Americans participating in the Affordable Care Act (ACA) marketplaces. Preliminary estimates suggest that average premiums could rise by as much as 18%, with some states experiencing hikes exceeding 60% due to the expiration of enhanced federal premium subsidies and ongoing medical inflation. This perfect storm of factors is likely to push out-of-pocket costs for policyholders sharply higher, creating substantial financial pressure for millions who rely on these plans for their healthcare coverage. Click here to learn more

Addressing the potential risks of extended-term care expenses may be one of the biggest financial challenges for Mastercard employees who are developing a retirement strategy.

Seven in ten Mastercard 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.

Mastercard 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 Mastercard?

The 401(k) plan at Mastercard is a retirement savings plan that allows employees to save a portion of their salary on a pre-tax or after-tax basis for retirement.

How does Mastercard match contributions to the 401(k) plan?

Mastercard offers a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions up to a certain limit, helping employees maximize their retirement savings.

Can employees at Mastercard change their 401(k) contribution amounts?

Yes, employees at Mastercard can change their 401(k) contribution amounts at any time, allowing them to adjust their savings based on their financial situation.

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

Mastercard's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

Is there a vesting schedule for the matching contributions at Mastercard?

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

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

Employees at Mastercard can access their 401(k) account information through the company's employee benefits portal or by contacting the plan administrator.

What is the minimum age to participate in Mastercard's 401(k) plan?

Employees must be at least 21 years old to participate in Mastercard's 401(k) plan, in accordance with federal regulations.

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

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

Can employees take loans against their 401(k) at Mastercard?

Yes, Mastercard allows employees to take loans against their 401(k) balance, subject to specific terms and conditions outlined in the plan.

What happens to the 401(k) plan if an employee leaves Mastercard?

If an employee leaves Mastercard, they have several options for their 401(k) plan, including rolling it over to an IRA or a new employer's plan, or cashing it out, subject to taxes and penalties.