Take Time to Consider your Benefits
For most of us, late fall means open enrollment season, that time of year when you can make changes to your benefits selections (or sign up for benefits, if you haven’t previously). In preparation, your employer has done a lot of work to explain your options, detail the contents of your package and urge you to make informed decisions.
Nonetheless, according to CPA Kelley C. Long, a member of the American Institute of CPAs’ consumer financial education advocates, if you’re like the majority of people, you’ll give that information a cursory look, check the boxes that say “No Change” and move on.
Don’t do it. Instead, take the time to review your options, critically considering the choices you make, because you might be overlooking opportunities to save money or simply make your life better. Here are some benefits components you should be taking advantage of.
Health Savings Account (HSA). With high-deductible health plans, HSAs can be big money savers, allowing you to set aside pre-tax dollars for healthcare-related costs. Pro tip: In addition to prescriptions and doctor visits, these dollars can be used for over-the-counter costs including common cold medicines, allergy medications, bandages, eye drops and more.
Flexible Spending Accounts (FSA). Similar to HSAs, FSAs help employees set aside pre-tax dollars for dependent care (childcare or adult care), adoption assistance, transportation and more.
Employee Assistance Program. One of the most underutilized benefits, an Employee Assistance Program (EAP) offers resources that can address questions about finances, legal issues, day care crises, mental health issues and more.
Supplemental Life and Disability Insurance. Often overlooked, supplemental life and disability insurance can be invaluable, typically allowing you to increase your coverage at a cost that’s well below what you could find on your own. This can be especially helpful if you have problems getting affordable coverage because of medical problems.
Retirement Plans. One of the best ways to save for retirement is to participate in an employer-sponsored plan, which sets aside pre-tax dollars. Plus, many employers offer matches up to a certain percentage. Do all you can to take full advantage of that match. Your future self will thank you.
Time off. More and more employers have shifted to Paid Time Off (PTO) models rather than vacation and sick days – and lots of us still leave time on the table. In fact, 55% of American employees don’t use all of their PTO each year. Make sure you know what your employer allows and take advantage of it. While you might think skipping vacation shows you’re a hard worker, studies suggest that taking time off increases productivity.
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Tags: benefits, benefits information