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Protecting Your Becton Dickinson Retirement: Managing Long-Term Care Costs

“Becton Dickinson employees who establish a dedicated health care reserve and explore flexible hybrid care solutions can help manage potential long-term care costs while addressing their overall retirement goals.”– Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

“By proactively allocating a targeted health care contingency fund and evaluating adaptable long-term care policy options, Becton Dickinson employees can mitigate the financial shock of extended care expenses while aligning with their broader retirement strategy.” – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

The financial impact of long-term care risk
Hybrid insurance solutions for long-term care (LTC) coverage
Strategies for building a dedicated health care contingency buffer

As Becton Dickinson employees approach retirement, many will face unexpected health challenges with age. Long-term care (LTC) costs can be extremely high for a small portion of retirees, and those exceptional cases can skew the average for everyone else. This insight—shared by Tyson Mavar, a financial advisor with Wealth Enhancement—highlights an often-overlooked aspect of retirement planning: the possibility that extended care and prolonged medical expenses can resemble a financial balloon payment.

Assistance with tasks such as eating, dressing, and bathing that are not covered by traditional medical treatment is referred to as long-term care. Unlike acute medical services, LTC is typically not included under Medicare or most standard health insurance policies, placing the financial burden on individuals. Around 70% of people over age 65 will need some form of LTC, ¹ yet only about 20% will require services lasting more than two years. ¹ Roughly 4–9% are expected to face extreme LTC costs exceeding $250,000 ² —something Becton Dickinson employees should account for.

Marital status also affects long-term care needs: individuals 65 and older who are single have a 51% chance of requiring paid LTC services, while those who are married face a 43% chance. ³

These numbers underscore the potential scope and cost of LTC needs. While the most expensive cases are uncommon, they can heavily influence financial assumptions, creating undue anxiety for those trying to prepare thoughtfully. Mavar’s key guidance is to “prepare, not panic,” advocating for balanced planning that manages costs without overcommitting resources for Becton Dickinson employees.

A core part of that approach is using cautious, reasoned assumptions when estimating future care expenses. Instead of preparing for worst-case scenarios, individuals might start with a baseline such as one year of full-time care at current local prices, then adjust only if there are clear indicators—like a family history of chronic illness—that prolonged care is more likely.

Mavar also encourages exploring hybrid insurance solutions rather than only traditional LTC insurance, which may come with rising premiums and limited flexibility. Hybrid plans—such as annuities with LTC features or life insurance policies—can offer care benefits if needed, or a legacy component if unused, potentially offering Becton Dickinson retirees a more adaptable approach.

Another helpful method is to allocate a separate portion of one’s assets specifically for future medical and care-related expenses. Creating a distinct “health care buffer” within the broader retirement plan can help retirees address those costs separately from other retirement needs. Becton Dickinson employees may want to consider liquid, lower-risk investments—like high-yield savings accounts or short-term government bonds—for this segment, allowing easier access to funds while limiting exposure to significant market fluctuations.

Mavar also cautions against letting rare but costly events dominate overall retirement preparation. “You don’t want to underfund the rest of your retirement and dedicate too much for something that may never occur,” he notes—practical guidance to help Becton Dickinson workers build adaptable, long-term spending strategies.

Ultimately, it’s wise to treat long-term care as both a health-related challenge and a factor that can influence estate and retirement outcomes. By estimating conservatively, examining hybrid policy options, and establishing a separate fund for care-related needs, Becton Dickinson employees can construct resilient retirement strategies that take LTC into account while still addressing their overall financial objectives.

Sources:

1. Administration for Community Living, Department of Health & Human Services. ' How Much Care Will YOu Need? ' 18 Feb. 2020.

2. Simply Insurance. ' How Many People Need Long Term Care in America? ' 12 June 2025.

3. Morningstar. ' How Likely Are You to Need Long-Term Care? ' by Christine Benz. 12 Jul. 2024.

Things I suggest deleting:

Becton Dickinson retirees are encouraged to dedicate a portion of their assets to health care expenses in a flexible and targeted way, research hybrid LTC policies, and use reasonable estimates for care-related costs as they approach retirement.

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Keywords: healthcare contingency, hybrid LTC insurance, retirement income options, long-term care planning

Planning for long-term care is similar to installing a backup generator for your home: when the power goes out, those who live alone face added challenges. Similarly, individuals over age 65 who are unmarried have a 51% chance of needing paid long-term care, compared to 43% for their married counterparts.

Just as a generator provides continuity during occasional outages, a carefully constructed LTC plan helps manage costly care needs while maintaining flexibility for other goals.

1. Genworth Financial, Inc., and CareScout. Cost of Care Survey 2024 . Genworth Financial, 4 Mar. 2025, pp. 1–2.

2. Cavanaugh, Lynn. “2024 Retiree Health Care Cost Estimate Is $165,000.” Fidelity Investments , 15 Aug. 2024, p. 1.

3. Office of the Assistant Secretary for Planning and Evaluation (ASPE). “What Is the Lifetime Risk of Needing and Receiving Long-Term Services & Supports?” U.S. Department of Health & Human Services , Dec. 2018, pp. 3–4.

4. American Association for Long-Term Care Insurance. “Long-Term Care Need Data for Men and Women.” AALTCI , July 2024, sec. “Married Couples Have Less Long-Term Care Need.”

5. Carroll, John. “Five Reasons to Discuss Long-Term Care Insurance Options with Your Clients.” LIMRA & LOMA , Dec. 2023, sec. “Life Combination Products.”

How does the Becton Dickinson and Company defined benefit plan differ from the cash balance plan in terms of eligibility and benefit calculation? Employees at Becton Dickinson and Company should be aware of how their retirement options and benefit calculations are structured, especially considering the historical context and the changes made after

Defined Benefit vs. Cash Balance Plan: The Becton Dickinson and Company defined benefit plan and cash balance plan differ significantly in terms of eligibility and benefit calculations. The defined benefit plan, which was the original format, calculates benefits based on the employee's final average pay, age, and years of service. On the other hand, the cash balance plan, introduced in 2007, provides a hypothetical account balance that grows with defined pay and interest credits. For eligibility, new hires after January 1, 2018, cannot join either plan, reflecting a closure to new entrants. Those rehired or transferred within the company after this date also cannot accrue new benefits under the cash balance plan.

This question encompasses the differences in participation rules, the implications of being hired before or after January 1, 2018, and how various employment classifications affect benefits.

Pension Benefits Calculation: Under the BD Retirement Plan, pension benefits are calculated based on 'Total Compensation,' which includes various forms of income like base salary, bonuses, and other regular compensations. The benefit is determined by 'Credited Service' and 'Vesting Service,' impacting the final benefit amount. Vesting in the plan occurs after five years of service, ensuring that employees are entitled to benefits regardless of subsequent employment duration.

In what ways are pension benefits and service calculated under the Becton Dickinson and Company BD Retirement Plan? The complexities involved in determining the pension benefit calculation are crucial for employees to understand as they plan for retirement. A discussion on how Total Compensation, Credited Service, and Vesting Service impact the final benefit amount will provide clarity to employees regarding their financial planning as they approach retirement.

Maximum Benefit Limits: Employees should be aware of IRS-imposed limits on contributions and benefits under retirement plans. For 2018, the compensation limit recognized for pension calculations was $275,000, adjusted annually for inflation. This affects the projected retirement benefits and requires employees to stay informed about annual adjustments to plan accordingly.

What specific maximum benefit limits should employees at Becton Dickinson and Company be aware of regarding their retirement plans and how do these limits adapt annually? Understanding the implications of IRS limits for defined benefit plans and cash balance plans is vital for employees at Becton Dickinson and Company. This question would delve into how annual adjustments might affect their projected retirement benefits and the importance of staying informed about these limits.

Addressing Discrepancies or Denial of Benefits: If discrepancies or wrongful denials occur concerning retirement benefits, Becton Dickinson and Company employees should contact the Plan Administrator. The process includes filing claims and understanding the rights to appeal under the Employee Retirement Income Security Act (ERISA). This structured approach helps employees rectify issues with their retirement benefits effectively.

How can Becton Dickinson and Company employees address discrepancies in their benefit calculations or if they believe they have been wrongfully denied benefits? The processes for appealing decisions made regarding retirement benefits can greatly impact an employee's financial future. This question would outline the steps employees can take, including contacting the Plan Administrator and the importance of understanding their rights under the Employee Retirement Income Security Act (ERISA).

Role of Committees in Managing the Retirement Plan: The Plan Administrative Committee and the Investment Committee play critical roles in overseeing the BD Retirement Plan. The former handles the plan's administration, ensuring compliance and managing benefit claims, while the latter focuses on the investment of plan assets. Employees can seek clarification or get involved by attending committee meetings or contacting them directly for specific inquiries.

What roles do the Plan Administrative Committee and the Investment Committee play in managing the BD Retirement Plan of Becton Dickinson and Company, and how can employees get involved or seek clarification on their plans? Employees interested in understanding the governance of their retirement plan will benefit from knowing who oversees the administration and investment of their benefits and how they can participate in discussions or seek advice.

Impact of Early Retirement: Early retirement affects the calculation of pension benefits, which are reduced based on the number of years retirement is taken before the normal retirement age. The plan allows for early retirement from age 55 with at least 10 years of service, with benefits reduced to compensate for the longer payout period.

How does the early retirement benefit impact employees at Becton Dickinson and Company, particularly in terms of eligibility and the calculation of reduced benefits? By exploring the conditions under which early retirement is permitted, along with calculations related to the reduction in benefits for taking early retirement, employees can make more informed decisions based on their personal circumstances.

Ensuring Accuracy of Retirement Benefits: To ensure accuracy in the calculation of retirement benefits, especially after changes in personal circumstances such as marital status or address, employees are encouraged to promptly update their information with HR. Regular reviews of their retirement plan statements and maintaining communication with the plan administrator are advisable practices.

What steps should employees of Becton Dickinson and Company take to ensure their retirement benefits remain accurate and up-to-date, especially after a change in personal circumstances? This question addresses the importance of regularly updating personal information and understanding the repercussions of life changes on retirement benefits, ensuring employees are proactive in managing their future.

Alternatives for Non-Eligible Employees: Employees not eligible for the BD Retirement Plan, possibly due to the timing of their hire or their role, should explore other retirement savings options like IRAs or the BD 401(k) Plan. These alternatives provide avenues for retirement savings, even for those not covered under the traditional pension plans.

What alternatives exist for Becton Dickinson and Company employees who are not eligible for the BD Retirement Plan, and how can they plan for retirement adequately? This discussion can help inform employees who may fall outside the eligibility criteria about other retirement savings options, such as Individual Retirement Accounts (IRAs) or employer-sponsored 401(k) plans.

Determining Survivors' Pensions: The survivor's pension is determined by the pre-retirement surviving spouse benefit, which generally provides a monthly benefit of 50% of the employee's pension, payable to the spouse for life after the employee's death. This emphasizes the importance of employees designating beneficiaries and understanding the impact of these decisions on their family's financial security.

In the context of the Becton Dickinson and Company BD Retirement Plan, how are survivors' pensions determined, and what options are available for employees regarding beneficiaries? Employees often overlook the significance of beneficiary designations. This question would clarify the process and options available for ensuring that survivors receive entitled benefits and the financial implications of different choices made regarding pension benefits for spouses and dependent children.

Contacting the Plan Administrator: Employees seeking more information about their retirement benefits should contact the Plan Administrator. Preparedness for such inquiries includes having detailed personal and employment information, understanding their current benefits status, and having specific questions or concerns about their plan benefits.

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For more information you can reach the plan administrator for Becton Dickinson at 1 Becton Dr Franklin Lakes, NJ 7417; or by calling them at +1 201-847-6800.