Walt Disney Employees: Navigating the Complexities of Extended Care Costs in Retirement

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

Seven in ten Walt Disney 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.

Walt Disney 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.

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What is the 401(k) plan offered by Walt Disney?

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

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

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

Does Walt Disney match employee contributions to the 401(k) plan?

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

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

The maximum contribution limit for the Walt Disney 401(k) plan is subject to IRS regulations, which may change annually.

When can Walt Disney employees start contributing to their 401(k) plan?

Walt Disney employees can start contributing to their 401(k) plan after completing a specified eligibility period, typically within their first year of employment.

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

Yes, there may be administrative fees associated with the Walt Disney 401(k) plan, which are disclosed in the plan documents.

Can Walt Disney employees take loans against their 401(k) savings?

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

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

The Walt Disney 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can Walt Disney employees change their 401(k) contribution amount?

Walt Disney employees can change their 401(k) contribution amount at designated times throughout the year, typically during open enrollment or after a qualifying event.

What happens to the 401(k) savings if a Walt Disney employee leaves the company?

If a Walt Disney employee leaves the company, they can choose to roll over their 401(k) savings to another retirement account, cash out, or leave the funds in the Walt Disney plan if eligible.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Walt Disney is a leading entertainment company known for its film studios, theme parks, and media networks. The company continues to innovate and expand its entertainment offerings globally.

Walt Disney provides RSUs to certain employees. These RSUs vest over time, encouraging employee retention.