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

Protecting Your NiSource Retirement: Managing Long-Term Care Costs

“NiSource 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, NiSource 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 NiSource 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 NiSource 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 NiSource 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 NiSource 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. NiSource 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 NiSource 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, NiSource 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:

NiSource 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.

Featured Video

Articles you may find interesting:

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.”

As an employee of National Grid, what are the key eligibility criteria for participating in the Pension Plan specifically for Niagara Mohawk Power Corporation employees? How might these criteria impact your personal retirement planning and the benefits you expect to receive upon retirement from National Grid?

Eligibility Criteria for Niagara Mohawk Pension Plan: Employees of Niagara Mohawk Power Corporation who are represented by Local Union 97 of the IBEW and work at least 20 hours per week or accumulate 1,000 hours in a Pension Plan year are eligible. Participation begins automatically on the first day of employment. These criteria directly impact retirement planning by determining when employees begin accruing pension benefits and how much they will receive at retirement(National_Grid_2023_Niag…).

Within the framework of the National Grid Pension Plan, how does the cash balance formula work in calculating retirement benefits, and what implications does this have for employees of Niagara Mohawk Power Corporation when considering their long-term financial outlook?

Cash Balance Formula: The National Grid Pension Plan for Niagara Mohawk employees uses a cash balance formula that provides monthly pay-based credits (starting at 4% and increasing with years of service) and interest credits. These accumulate in a hypothetical account, growing until retirement, allowing employees to track their retirement benefits much like a savings account. This formula impacts financial outlook by providing predictable growth tied to service and pay(National_Grid_2023_Niag…).

For employees at National Grid, what are the specific rights and options available during the pension benefit application process? How do these rights protect the interests of individual employees and ensure they receive fair treatment under the Niagara Mohawk Pension Plan?

Pension Benefit Application Process: National Grid employees must apply for their pension benefits by submitting the required forms at least 90 days before retirement. Spousal consent is required if opting for any form of payment other than the default. This ensures employees understand and select the best payment option for their circumstances, protecting their interests under the Niagara Mohawk Pension Plan(National_Grid_2023_Niag…).

Given the different types of credits that contribute to the pension benefit for employees of National Grid, how are Pay-based Credits and interest credits calculated? What strategies might Niagara Mohawk Power Corporation employees employ to maximize these credits before retirement?

Pay-based and Interest Credits Calculation: Pay-based credits are determined by years of service, starting at 4% of pay and increasing to 8% after 20 years. Interest credits are based on an annual interest rate tied to the Treasury securities and corporate bond rates. Employees can maximize these credits by continuing to work and contributing to their pension balance(National_Grid_2023_Niag…).

How do pension benefits work for Transition Group Employees specifically within National Grid's framework, and what unique provisions apply to them under the Pension Plan as compared to regular employees of Niagara Mohawk Power Corporation?

Pension Benefits for Transition Group Employees: Transition Group Employees under the National Grid Pension Plan have benefits calculated using both the former final average pay formula and the cash balance formula, with the greater benefit being paid out. This differs from regular employees who only receive benefits calculated under the cash balance formula(National_Grid_2023_Niag…)(National_Grid_2023_Niag…).

What are the repercussions for National Grid employees in terms of benefit loss or limitation if they have not met the Vesting requirements under the Niagara Mohawk Pension Plan? How can understanding these repercussions influence an employee's decision-making regarding their career and retirement?

Impact of Vesting Requirements: Employees must complete three years of service to become vested in the Niagara Mohawk Pension Plan. If they leave before vesting, they lose all accrued pension benefits. Understanding vesting requirements is crucial for career and retirement planning, as it ensures employees retain their pension benefits if they meet the criteria(National_Grid_2023_Niag…).

As a current employee at National Grid, what does the termination of the Pension Plan imply for accrued benefits under the Niagara Mohawk Pension Plan? Specifically, how do federal protections through ERISA and the Pension Benefit Guaranty Corporation come into play for employees seeking assurance regarding their retirement funds?

Termination of Pension Plan and Federal Protections: If the Niagara Mohawk Pension Plan is terminated, accrued benefits are protected by ERISA and insured by the Pension Benefit Guaranty Corporation (PBGC). Employees can feel assured that their benefits will be secured up to the PBGC's limits in case of plan termination(National_Grid_2023_Niag…).

How does the National Grid Pension Plan accommodate the unique situations of employees during times of disability or military service, and what steps should Niagara Mohawk Power Corporation employees take to ensure their benefits continue during these periods?

Disability and Military Service: Niagara Mohawk employees receive service credits during periods of disability or military leave, ensuring continuous pension accrual. Employees should ensure their disability or military status is properly documented with the company to avoid interruptions in their pension benefits(National_Grid_2023_Niag…).

When considering the various forms of pension payments available to retirees from National Grid, what are the potential advantages and disadvantages of choosing an annuity versus a lump-sum payment for employees from Niagara Mohawk Power Corporation?

Annuity vs. Lump-Sum Payment: Retirees at National Grid have the option to choose between an annuity, providing a steady income for life, or a lump-sum payment. The annuity provides financial stability, while a lump sum offers flexibility. The choice depends on individual financial needs and retirement goals(National_Grid_2023_Niag…).

For those looking to gain further clarity on the nuances of the Niagara Mohawk Pension Plan, what are the most effective ways for employees to contact National Grid for assistance? How can engaging with the Pension Service Center enhance an employee's understanding of their benefits and rights?

Contacting National Grid for Pension Assistance: Employees seeking more information about their Niagara Mohawk Pension Plan can contact the National Grid Pension Service Center or use the online pension modeler. Engaging with the Pension Service Center provides personalized guidance, helping employees understand their benefits and make informed decisions(National_Grid_2023_Niag…).