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NVR 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 NVR employees who are developing a retirement strategy.

Seven in ten NVR 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.

NVR 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 NVR 401(k) plan?

The NVR 401(k) 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 post-tax basis.

How can I enroll in the NVR 401(k) plan?

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

Does NVR offer a company match for the 401(k) contributions?

Yes, NVR offers a company match on employee contributions to the 401(k) plan, helping employees to maximize their retirement savings.

What is the maximum contribution limit for the NVR 401(k) plan?

The maximum contribution limit for the NVR 401(k) plan is set by the IRS and may change annually. Employees should check the current limits to ensure they are contributing the maximum allowed.

Can I change my contribution amount to the NVR 401(k) plan?

Yes, employees can change their contribution amount to the NVR 401(k) plan at any time by accessing their account through the benefits portal.

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

The NVR 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles, allowing employees to choose based on their risk tolerance and retirement goals.

When can I start withdrawing from my NVR 401(k) plan?

Employees can typically begin withdrawing from their NVR 401(k) plan without penalty at age 59½, but there are specific rules regarding hardship withdrawals and loans.

Does NVR allow loans against my 401(k) balance?

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

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

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

Are there any fees associated with the NVR 401(k) plan?

Yes, the NVR 401(k) plan may have administrative fees and investment-related fees. Employees should review the plan documents for detailed information on any applicable fees.