When was the last time you really thought about the benefits options that your employer offers? If you’ve been at your company for a while, it’s tempting to just stay with the status quo. But the retirement and health benefits you chose when you signed on may not be the best ones for right now. Fortunately, you have a chance every year to review your choices and make adjustments. Here’s what you need to know about open enrollment.
Open enrollment is a once-a-year period when you’ll have the chance to review and make changes to the employee benefits you receive including health insurance, retirement savings, tax advantaged flexible spending accounts, and even tuition assistance. You’ll get a packet from your employer describing your options and how to make new selections.
It’s a great time to look back at the coverage you have with your employer, what new options may be available, and what changes you may need in your coverage for the upcoming year.
Why make changes at all? Of course, you may not need to. But you should at least check because benefits change. Prices may be higher or lower this year. Your family situation may have shifted, with a new baby or a child heading off to college. You may have access through your health plan to different doctors, hospitals, and networks. Your employer may offer new benefits you didn’t have the opportunity to consider before or benefits that weren’t relevant the last time around. Spending a little time reviewing your options now can pay off in better, more appropriate coverage all year long.
How can you get started? Here are four ways to fine-tune your benefits during open enrollment.
What health events did you have this past year? Did you find yourself paying large deductibles on medical care and prescriptions? Did you stay relatively healthy and still pay higher-than-necessary amounts from your paycheck every pay period for health insurance? Now is a good time to think about what you may want next year.
Major life changings like having children, watching children graduate from college, getting married, or getting divorced greatly impact the decisions you make on your health and retirement benefits from your employer sponsored plan.
Benefits can change. Read your enrollment package to find out what your employer is offering this year in these basic areas:
Health: Most health plans provide search tools to help you make sure the care you’ll need is covered. For instance, you’ll want to find out if your primary care physician is covered by your plan. Check to make sure the closest hospitals and medical facilities are in your network. You may even want to look up specific prescription drugs you take to find out if they’re in your plan and how much they cost. Don’t forget to check out vision and dental benefits your company may offer in addition to regular health insurance.
Retirement: Take a look at your statement from the previous year and think about whether you are on track for retirement. Are you happy with the investments you selected? Do you feel like you’re exposed to too much risk? Are there new or better investment options in your company’s defined contribution plan? Has your employer adjusted its company match? If your company offers both, have you considered whether a Roth or Traditional IRA is the best fit for you? Your New York Life financial professional can be an invaluable sounding board as you make decisions about retirement benefits.
Lifestyle: Now is the time to think about the wellness benefits your employer offers. Could you benefit from joining a gym? Does your company cover consultations with a nutritionist, physical therapist, or massage therapist? Does it offer financial wellness counseling or assistance with emergency savings, student loan payments, or other obligations?
Education: If you or a family member is headed off to school, find out what your company offers. Many employers offer tuition assistance to employees and their families, and some even have dedicated scholarships for college-bound kids of employees.
You’ll want to factor in these considerations when choosing benefits:
Costs: Compare the amount that will be deducted from your paycheck to the value you expect to realize. For example, if you are in good health and rarely go to the doctor, you may want to consider a high-deductible health plan with lower monthly premiums.
Convenience: How much trouble will it be to take advantage of the benefits you’re considering? Is the company gym on site or part of a network of facilities that may be closer to your home? Do you have access to the doctors you know, or will you have to switch? Choose benefits you can easily integrate into your busy life.
Alignment with your needs: Think carefully about what you need most from your employee benefits plan. Is it comprehensive coverage for a chronically ill family member? Do you need college tuition assistance so you can go back to school? Many companies allow you to tailor your benefits to your specific needs.
Family/spousal coverage: It makes sense to coordinate coverage with your spouse who may be eligible for their own set of workplace benefits. Or if your spouse and/or children aren’t eligible for another plan, make sure you understand the costs and features of family coverage.
Tax benefits: Many employee benefits, such as retirement plans and flexible savings accounts, create substantial tax benefits. You may want to talk to a tax professional about the implications before you choose your benefits.
Your benefits needs can change as your life changes, as the costs and features of your company’s programs are modified, and as new benefits are offered. Open enrollment gives you a once-a-year chance to re-evaluate your coverage and make new selections as necessary. Fortunately, you don’t have to make these decisions alone. Your New York Life financial professional can help you review your options and choose the benefits that will work for you in the year to come.
This article is provided for general informational purposes only. Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.
SMRU #6006182 exp. 11/1/2025