Counties get a lot more with Deferred Compensation Program
Today’s county workers face some uncertainties as they prepare for and live in retirement. From investment market volatility to Social Security decisions to long-term care to “the unknowns,” these types of challenges can be dizzyingly complex.
Fortunately, in counties that offer the NACo Deferred Compensation Program, even more resources are available to help employees. NACo and Nationwide have been partners for more than 35 years, dedicated to ensuring counties can make high-quality supplemental retirement plans available to their employees. As provider of the NACo Deferred Compensation Program, Nationwide gives counties access to competitive products, tools, services and pricing.
Understanding how health care costs impact retirement savings
Let’s start with health care in retirement. Many county employees may think Medicare will cover them completely, when in fact, it covers only about 62 percent of expenses associated with health care services. Even with a very good retiree health insurance plan, workers need to plan ahead for out-of-pocket expenses, gaps in coverage and long-term care.
Through Nationwide, the NACo Deferred Compensation Program helps participants understand what Medicare does and doesn’t cover; see the key differences and premiums for Medicare parts A, B and D; and develop realistic expectations for out-of-pocket medical expenses throughout retirement. Called the Nationwide Health Care Cost Assessment, this tool:
- helps participants estimate what they can expect to pay for health care in retirement
- is powered by calculations from one of the world’s leading actuarial firms, and
- includes separate estimates for Medicare premiums, out-of-pocket costs and long-term care costs.
And, coming this summer, a really simple, five question, online Health Care Cost Estimator Tool will be incorporated into My Interactive Retirement Planner, Nationwide’s intuitive online tool that uses participant information to help them project their income needs through retirement. It’s a free service to participants who log onto the retirement account at www.nrsforu.com, the NACo Deferred Compensation Program website.
Understanding the role of Social Security income in retirement planning
Thanks to prior work experience and loved ones, even public employees exempt from Social Security participation usually need to understand how it may affect their retirement planning. With over 2,700 rules in the Social Security handbook, it’s difficult to have all the answers.
Nationwide has a powerful yet easy-to-use tool that helps county workers familiarize themselves with basic terminology and rules, under-stand benefits and work with the Social Security Administration, see the impact of longevity on lifetime value, leverage spousal or survivor benefits and address concerns about the uncertain future of Social Security. The Nationwide Social Security 360 AnalyzerSM tool:
- accounts for complexity of benefits to meet unique situations
- identifies optimal and alternate filing strategy options
- positions Social Security in the context of an overall retirement income plan, and
- generates a personalized participant report.
Perhaps the biggest challenge workers face is the unknown; no one can see the future. But employees can work out scenarios to prepare for it using the array of tools and educational services provided by the NACo Deferred Compensation Program and Nationwide. It’s one more way that NACo and Nationwide provide participants with choices for how they receive education and make decisions about their retirement planning.
County employers wanting to learn more about the award-winning services, action-oriented communications and new features for participants available through the NACo Deferred Compensation Program should contact Linda Barber at email@example.com.
(Bob Beasley, communications consultant, Nationwide, wrote Financial Services News.)
Nationwide Retirement Solutions (Na-tionwide) makes payments to the National Association of Counties (NACo), NACo PEB LLC and the NACo Financial Services Center Partnership (FSC) for services and endorsements that NACo provides for all its members generally related to Nationwide’s products and services sold exclusively in public sector retirement markets. More detail about these payments is available at www.nrsforu.com.
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