Whether you’re changing jobs or staying with your current employer, it’s important to review your benefits carefully and make sure they still meet your needs.
Review your benefits!
Health insurance: Does your employer offer multiple health plan options? What are the deductibles, copays, and out-of-pocket maximums of each? Are your doctors and prescriptions covered in-network? Does the plan offer vision and dental coverage?
Health savings accounts (HSAs): Do you have a high-deductible health plan? If you do, consider funding an HSA, which is a type of savings account that allows you to save money on a pre-tax basis and withdraw those funds tax-free to pay for qualified medical expenses.
Retirement savings plans: Does your employer offer a 401(k) or 403(b) plan? If your employer makes matching contributions, make sure you are contributing at least enough to receive the full match. Does the plan offer a Roth component? Depending on your income and tax circumstances, contributing to the Roth may be more beneficial in the long run.
Paid time off: How many vacation days, sick days and personal days do you have? Is there a policy for rolling over unused time?
Other benefits: Does your employer offer other benefits, such as life insurance, disability insurance, tuition reimbursement, or gym memberships?
Things to consider:
Cost: How much will your benefits cost you each month? Be sure to factor in your employer’s contributions and any pre-tax deductions.
Coverage: Does your benefits package still meet your needs? If you have chronic health conditions or young children, you may need more comprehensive coverage.
Flexibility: Do your benefits offer flexibility? For example, can you choose between a traditional health insurance plan and a high-deductible health plan with a health savings account (HSA)? Can you save money by electing to have fewer vacation days?
Your goals: What are your financial and personal goals? If you’re planning to retire early, you’ll want to focus on maximizing your retirement savings. If you’re planning to start a family, you’ll want to make sure you have adequate health insurance coverage.
It’s important to review your benefits package regularly, especially if your life circumstances change. For example, if you get married, have a child, or develop a chronic health condition, you may need to update your coverage.
It’s essential to check with your HR department for your company’s specific open enrollment timeline. If you have any questions about your benefits package or how to choose the right benefits for you, be sure to talk to your employer’s HR representative or a financial advisor.
Take Action Now!
If you’re changing jobs:
- Compare the benefits offered by your new employer to the benefits you’re currently receiving.
- If you see a gap, negotiate for a higher salary, better benefits, or more perks.
- Review your job offer carefully before you sign it. Make sure you understand all the terms and conditions of your employment, including your compensation package.
If you’re staying with your current employer:
- Review your benefits changes during open enrollment. Your employer may be adding new benefits or changing the terms of existing benefits.
- Consider increasing – or maxing out! – your retirement contributions before the end of the year. Maximum contributions for 2024 are $23,000 for 401(k) or 403(b), and $7,000 for IRA and Roth accounts. Maximum contributions increase for ages 50+.
- Don’t be afraid to ask for help if you’re not sure how to choose the right benefits for you. Your employer’s HR representative or a financial advisor can help you understand your options and make the best decisions for your needs.