New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Protecting Your Berkshire hathaway Retirement: Managing Long-Term Care Costs

“Berkshire hathaway 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, Berkshire hathaway 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 Berkshire hathaway 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 Berkshire hathaway 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 Berkshire hathaway 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 Berkshire hathaway 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. Berkshire hathaway 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 Berkshire hathaway 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, Berkshire hathaway 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:

Berkshire hathaway 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 merger of the Johns Manville Employees Retirement Plan into the Berkshire Hathaway Consolidated Pension Plan specifically affect the retirement benefits for current employees at Johns Manville? In what ways can eligible employees of Johns Manville leverage the benefits of this merger to maximize their retirement planning?

Impact of Merger on Current Employees' Retirement Benefits: The merger of the Johns Manville Employees Retirement Plan into the Berkshire Hathaway Consolidated Pension Plan does not decrease the pension benefits previously earned by employees under their prior plans. Employees continue to receive the same benefits with the same payment options as provided by their prior plan. Any previous payment elections, beneficiary designations, and qualified domestic relations orders remain effective. This consolidation also maintains the insurance of pension benefits through the federal Pension Benefit Guaranty Corporation.

What are the implications for employees of Johns Manville if they choose to retire early prior to their Normal Retirement Age? How do the specific conditions set forth in the Berkshire Hathaway Consolidated Pension Plan guide early retirees from Johns Manville in making informed decisions regarding their benefit options?

Implications of Early Retirement: Employees of Johns Manville who choose to retire early, before their Normal Retirement Age, can still receive benefits. However, these benefits are adjusted based on the age of retirement. If an employee retires at 60, for instance, their monthly benefit payment from the plan will be reduced by a certain percentage for each month that the benefit payments start before the Normal Retirement Age. This reduction compensates for the longer period over which benefits are expected to be paid.

Given the unique characteristics of the Merged Plan, what should employees at Johns Manville consider when calculating their Average Final Salary, and how does this calculation impact their retirement benefits? Additionally, how is Covered Compensation factored into this adjustment, and what strategies can employees employ to ensure accurate calculations?

Calculation of Average Final Salary and Covered Compensation: When calculating the Average Final Salary for retirement benefits, it includes the highest-paid, five consecutive years out of the last ten years of employment. This calculation impacts the retirement benefits as it forms part of the formula used to determine the pension amount. Additionally, Covered Compensation, which refers to the average of the Social Security wage bases, is used to adjust portions of the salary in the benefits calculation, ensuring that the benefits align with national wage growth trends.

How can employees of Johns Manville navigate the various options available for retirement benefit payments outlined in the Berkshire Hathaway Consolidated Pension Plan? What key points should Johns Manville employees consider regarding the selection of forms of payment and potential tax implications in retirement?

Navigating Retirement Benefit Payment Options: Employees of Johns Manville need to consider the form of payment for their retirement benefits, as different options can have different tax implications and affect monthly income. Options typically include lump sums, annuities, or a combination. Employees should consider their financial needs, tax situation, and life expectancy when choosing the form of payment. Consulting with a financial advisor could be beneficial.

For employees at Johns Manville, what steps should they take to stay informed about their accumulated service and benefit service credits, particularly in relation to the changes brought about by the merger into the Berkshire Hathaway Consolidated Pension Plan? How do vested rights impact their eligibility for retirement benefits?

Staying Informed About Service Credits: To manage the transition and keep track of their service credits post-merger, Johns Manville employees should regularly review their service and benefit statements, maintain communication with the plan administrator, and attend any informational meetings or seminars offered by Berkshire Hathaway. Understanding how service credits are calculated and tracked ensures that employees can accurately plan for retirement.

What is the process for reemployment under the Terms of the Merged Plan for former employees of Johns Manville, and how can they ensure their accumulated benefit service is credited effectively upon rehire? What are the implications of this reemployment on their retirement benefits, particularly concerning their previous employment history?

Reemployment and Accumulated Benefits: Reemployed former employees of Johns Manville should verify how their accumulated benefits are treated upon their rehire. Generally, benefits accumulated during previous periods of employment will be credited upon rehire, but specific plan provisions should be consulted to confirm how reemployment affects accrued benefits and eligibility for additional benefits.

What do the terms of the Berkshire Hathaway Consolidated Pension Plan dictate regarding disability retirement benefits for eligible employees at Johns Manville? How should employees approach the application process for disability benefits, and what criteria do they need to be aware of to qualify?

Disability Retirement Benefits: Eligible employees of Johns Manville who become disabled according to the terms of the plan may qualify for disability retirement benefits. The process involves a determination by the plan administrator, and employees must meet specific criteria outlined in the plan documents to qualify. Understanding these criteria and the required documentation is crucial for accessing disability benefits.

How can employees of Johns Manville ensure they have adequate protection for their beneficiaries under the retirement provisions outlined in the Berkshire Hathaway Consolidated Pension Plan? What specific steps can employees take to secure these benefits, and how can they keep their beneficiary designations updated?

Beneficiary Protections: Employees should regularly review and update their beneficiary designations to ensure that their retirement benefits are distributed according to their wishes upon their death. This includes making any necessary changes following life events such as marriage, divorce, or the birth of a child.

How does participation in the Merged Plan differ for salaried and hourly employees of Johns Manville, and what specific eligibility criteria apply to each group? How can understanding these differences improve retirement planning for employees across the different classifications?

Differences in Participation for Salaried and Hourly Employees: The eligibility and benefits might differ between salaried and hourly employees under the Merged Plan. Understanding these differences helps employees make informed decisions about their retirement planning and benefit utilization.

How can employees of Johns Manville contact the Local Benefits Administrator for assistance regarding their retirement benefits and the contents of their plan documents? What are the recommended methods of communication for inquiries or requests regarding their Merged Plan benefits?

Contacting Local Benefits Administrator: Employees should contact their Local Benefits Administrator for any inquiries or assistance regarding their retirement plan. Keeping the contact information updated and consulting the administrator for guidance on plan provisions and benefit claims is advised for navigating their retirement benefits effectively.