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

Healthcare Provider Update: Patterson offers medical, dental, vision, life, and disability insurance, along with HSAs and FSAs. Employees benefit from a 401(k) plan, paid time off, and voluntary benefits like accident and hospital indemnity coverage. The company subsidizes approximately 75% of healthcare costs and provides legal and identity theft protection 9. Patterson With ACA premiums expected to surge, Pattersons subsidized healthcare and flexible coverage options help employees maintain affordable access to care. Click here to learn more

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

Seven in ten Patterson 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.

Patterson 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 primary purpose of Patterson's 401(k) Savings Plan?

The primary purpose of Patterson's 401(k) Savings Plan is to help employees save for retirement by providing a tax-advantaged way to invest a portion of their income.

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

Patterson matches employee contributions to the 401(k) plan up to a certain percentage of their salary, enhancing the overall savings potential for employees.

When can employees at Patterson enroll in the 401(k) Savings Plan?

Employees at Patterson can enroll in the 401(k) Savings Plan during their initial onboarding period or during the annual open enrollment period.

What types of investment options are available in Patterson's 401(k) Savings Plan?

Patterson's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

Can employees at Patterson take loans against their 401(k) Savings Plan?

Yes, employees at Patterson may have the option to take loans against their 401(k) Savings Plan, subject to specific terms and conditions.

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

Employees at Patterson can access their 401(k) account information online through the plan's dedicated portal or by contacting the plan administrator.

What happens to the 401(k) Savings Plan if an employee leaves Patterson?

If an employee leaves Patterson, they have several options regarding their 401(k) Savings Plan, including rolling it over to another retirement account or leaving it in the plan.

Does Patterson offer a Roth 401(k) option within its Savings Plan?

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

Are there any fees associated with Patterson's 401(k) Savings Plan?

Yes, Patterson's 401(k) Savings Plan may have certain administrative fees, which are disclosed in the plan documents provided to employees.

How often can employees at Patterson change their contribution amounts to the 401(k) plan?

Employees at Patterson can change their contribution amounts to the 401(k) plan during the annual open enrollment period or at any time as permitted by the plan.