Maximizing Your Financial Plan: Annual Review of Employer Benefits

Monique Marshall |

When it comes to building a solid financial plan, evaluating and maximizing the benefits provided by your employer should be a top priority. Many employees overlook the importance of conducting an annual review of their employer benefits package, missing out on valuable opportunities to enhance their financial well-being. In this blog post, we will explore why conducting an annual review of your employer benefits is crucial and how it can significantly contribute to your overall financial plan.

Health Insurance

Health insurance is one of the most critical components of any benefits package. Start your review by thoroughly understanding your coverage options, including premiums, deductibles, co-pays, and out-of-pocket maximums. Assess your healthcare needs and consider any changes in your circumstances, such as the addition of a family member or the need for specific medical treatments. Evaluate alternative plans to ensure you are maximizing your coverage while minimizing costs.

Retirement Plans

Your employer's retirement plan, such as a 401(k) or pension scheme, is a powerful tool for building long-term financial security. Review your contributions and determine if you are taking full advantage of any employer matching contributions. Consider increasing your contributions, if possible, to maximize the benefits of compound interest over time. If your employer offers a Roth 401(k) option, evaluate whether it aligns with your tax and retirement strategy.

Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)

FSAs and HSAs allow you to set aside pre-tax dollars for eligible healthcare expenses. Review the contribution limits, rollover options, and eligible expenses for each account. If you have an FSA, ensure that you spend down the funds before the end of the year to avoid losing them. If you have an HSA, explore investment options and consider using it as a long-term savings vehicle for healthcare expenses in retirement.

Life and Disability Insurance

Evaluate your life and disability insurance coverage to ensure it aligns with your current needs. Consider any significant life events, such as marriage, the birth of a child, or a promotion, which may warrant an increase in coverage. Review the beneficiaries listed on your policies to ensure they are up to date. If your employer provides group coverage, compare the costs and benefits against private insurance options to determine the best fit for your needs.

Employee Assistance Programs (EAPs) and Wellness Benefits

Many employers offer EAPs and wellness benefits to support employees' mental and physical well-being. Familiarize yourself with the resources available, such as counseling services, stress management programs, gym memberships, or wellness incentives. Take advantage of these offerings to enhance your overall quality of life and potentially reduce healthcare costs in the long run.

Tuition Reimbursement and Professional Development

If your employer provides educational assistance or professional development programs, take advantage of them. Consider your long-term career goals and identify opportunities for growth and advancement within your organization. Learning new skills or pursuing further education can increase your earning potential and contribute to your financial plan in the long term.

Conducting an annual review of your employer benefits is essential for maximizing your financial plan. By taking the time to evaluate your health insurance, retirement plans, FSAs/HSAs, insurance coverage, wellness benefits, and educational assistance, you can identify opportunities to optimize your benefits and increase your overall financial security. Remember, your employer benefits package is a valuable resource that should not be overlooked when developing a comprehensive financial plan. Contact us today for assistance in reviewing your Employer Benefit opportunities.

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Life By Design Investment Advisory Services is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein.

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