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NRG Energy Employees: Navigating the Complexities of Extended Care Costs in Retirement

Healthcare Provider Update: NRG Energy offers its employees a robust benefits package that includes medical, dental, vision, and mental health coverage. Employees can participate in a 401(k) plan with company matching, flexible spending accounts, and life and disability insurance. Additional perks include paid holidays, volunteer time, tuition reimbursement, and family medical leave 2. Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

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

Seven in ten NRG Energy 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.

NRG Energy 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 type of retirement savings plan does NRG Energy offer to its employees?

NRG Energy offers a 401(k) retirement savings plan to its employees.

Is participation in the NRG Energy 401(k) plan mandatory for employees?

Participation in the NRG Energy 401(k) plan is voluntary; employees can choose whether or not to enroll.

What is the company match for the NRG Energy 401(k) plan?

NRG Energy matches a percentage of employee contributions to the 401(k) plan, up to a certain limit, which is detailed in the plan documents.

At what age can employees start contributing to the NRG Energy 401(k) plan?

Employees can start contributing to the NRG Energy 401(k) plan as soon as they are eligible, typically upon their date of hire.

How can employees at NRG Energy enroll in the 401(k) plan?

Employees at NRG Energy can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

Does NRG Energy offer a Roth 401(k) option within its savings plan?

Yes, NRG Energy offers a Roth 401(k) option, allowing employees to make after-tax contributions to their retirement savings.

How often can employees change their contribution rates to the NRG Energy 401(k) plan?

Employees can change their contribution rates to the NRG Energy 401(k) plan on a quarterly basis or as specified in the plan guidelines.

What investment options are available in the NRG Energy 401(k) plan?

The NRG Energy 401(k) plan offers a range of investment options, including mutual funds, target-date funds, and other investment vehicles.

Can employees take loans against their 401(k) savings at NRG Energy?

Yes, employees may be able to take loans against their 401(k) savings at NRG Energy, subject to the terms of the plan.

What happens to my NRG Energy 401(k) if I leave the company?

If you leave NRG Energy, you can choose to roll over your 401(k) balance to another retirement account, withdraw the funds, or leave the money in the NRG Energy plan if allowed.