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Valvoline 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 Valvoline employees who are developing a retirement strategy.

Seven in ten Valvoline 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.

Valvoline 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 Valvoline?

Valvoline offers a 401(k) plan that allows employees to save for retirement with pre-tax contributions, helping them build a nest egg for their future.

How can employees enroll in Valvoline's 401(k) plan?

Employees can enroll in Valvoline's 401(k) plan by accessing the enrollment portal through the company's HR website or contacting the HR department for assistance.

What types of contributions can employees make to Valvoline's 401(k) plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and may also have the option for catch-up contributions if they are age 50 or older.

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

Yes, Valvoline offers a company match for employee contributions to the 401(k) plan, which helps employees maximize their retirement savings.

What is the vesting schedule for Valvoline's 401(k) company match?

The vesting schedule for Valvoline's 401(k) company match typically follows a graded schedule, meaning employees become vested in the company match over a period of time.

Can employees change their contribution amounts to Valvoline's 401(k) plan?

Yes, employees can change their contribution amounts to Valvoline's 401(k) plan at any time, subject to the plan's rules and guidelines.

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

Valvoline's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Is there a loan option available in Valvoline's 401(k) plan?

Yes, Valvoline's 401(k) plan may allow employees to take loans against their account balance, subject to specific terms and conditions outlined in the plan.

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

If an employee leaves Valvoline, 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).

How often can employees access their 401(k) statements from Valvoline?

Employees can access their 401(k) statements from Valvoline on a quarterly basis, and they can also view their account online at any time.