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Warner Music Group 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 Warner Music Group employees who are developing a retirement strategy.

Seven in ten Warner Music Group 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.

Warner Music Group 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 type of retirement savings plan does Warner Music Group offer to its employees?

Warner Music Group offers a 401(k) retirement savings plan to its employees.

Does Warner Music Group match employee contributions to the 401(k) plan?

Yes, Warner Music Group provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.

When can employees at Warner Music Group start contributing to the 401(k) plan?

Employees at Warner Music Group can start contributing to the 401(k) plan after completing their eligibility requirements, typically upon their date of hire.

What is the maximum contribution limit for the 401(k) plan at Warner Music Group?

The maximum contribution limit for the 401(k) plan at Warner Music Group is in accordance with IRS regulations, which can change annually.

Are there any investment options available within the Warner Music Group 401(k) plan?

Yes, the Warner Music Group 401(k) plan offers a variety of investment options, including mutual funds and other investment vehicles.

Can employees at Warner Music Group take loans against their 401(k) savings?

Yes, Warner Music Group allows employees to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What happens to my 401(k) savings if I leave Warner Music Group?

If you leave Warner Music Group, you can choose to roll over your 401(k) savings into another retirement account or withdraw your funds, subject to tax implications.

Does Warner Music Group offer financial planning assistance for its 401(k) plan participants?

Yes, Warner Music Group provides access to financial planning resources and tools to help employees manage their 401(k) investments.

How often can employees at Warner Music Group change their 401(k) contribution amounts?

Employees at Warner Music Group can change their 401(k) contribution amounts during designated enrollment periods or as allowed by the plan.

Is there a vesting schedule for the employer match in the Warner Music Group 401(k) plan?

Yes, Warner Music Group has a vesting schedule for employer matching contributions, which means employees must work for a certain period before they fully own those contributions.