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Spire 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 Spire employees who are developing a retirement strategy.

Seven in ten Spire 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.

Spire 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 Spire?

The 401(k) plan at Spire is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

Does Spire offer a matching contribution for the 401(k) plan?

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

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

Spire employees can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What is the eligibility requirement for Spire’s 401(k) plan?

To be eligible for Spire’s 401(k) plan, employees typically need to be full-time employees and meet a minimum service requirement.

What types of investment options are available in Spire’s 401(k) plan?

Spire’s 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to diversify their portfolios.

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

Yes, Spire employees can change their contribution percentage at any time, subject to the plan’s guidelines.

What is the maximum contribution limit for Spire’s 401(k) plan?

The maximum contribution limit for Spire’s 401(k) plan is in accordance with IRS guidelines, which may change annually.

Does Spire allow for loans against the 401(k) plan?

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

What happens to my 401(k) plan if I leave Spire?

If you leave Spire, you can choose to roll over your 401(k) balance to another retirement account, cash it out, or leave it in the Spire plan if eligible.

How often can Spire employees review their 401(k) statements?

Spire employees can review their 401(k) statements quarterly, and they can also access their account online at any time.