For many employers across the country, this time of year marks open enrollment season for their employees— and it deserves your attention. Open enrollment season offers you the opportunity to review the work benefits, financial contributions, and health-related plans your employer offers. Quite plainly, it’s an opportunity for you to make informed decisions that impact your physical and fiscal well-being.

Here are a few tips to help you as you get started:

Insurance lets you transfer financial risk to an insurer at a cost, also known as premiums. There is no “one size fits all” solution so it’s up to you to review each plan and choose the right coverage and price point to meet your needs. Your employer may offer some of these insurance plans as part of your employee benefit package. Contact your Human Resources department to find out what choices you have, as they can change each year.

  • Health Insurance is typically offered to full time employees and helps you pay for medical services like annual checkups, prescriptions, and the care that comes with major illnesses and hospital stays. You and your insurer each agree to pay a certain dollar amount or percentage of your medical expenses. Learn about different types of health insurance plans and how to choose a plan that’s right for you. All health insurance plans in the marketplace must cover 10 essential services. While health insurance plans must cover certain essential services, they may also cover additional health needs:
    • Vision insurance is a health benefit that at least partially covers vision care, like eye exams and glasses.
    • Dental Insurance is treated differently for adults and children 18 and under. Dental coverage is an essential health benefit for children. This means if you’re getting health coverage for someone 18 or younger, dental coverage must be available for your child either as part of a health plan or as a separate dental plan. Note: While dental coverage for children must be available to you, you don’t have to buy it. Dental coverage isn't an essential health benefit for adults. Health plans don’t have to offer adult dental coverage.
  • Life Insurance helps you protect your loved ones from financial hardship in the event of your death. Once a policy is issued, an insurer may not cancel it based on a change in the policyholder’s health status. There are several types of life insurance, allowing you to find a policy type that works for your personal situation.
  • Disability Insurance helps pay part of your income if you can't work because you are sick or injured. Learn more about the different types of disability insurance to include short- and long-term plans, Social Security disability, and Veterans Administration disability.
  • Long-term care insurance is not medical care, but rather a range of services and support to assist with the basic personal tasks of everyday life. The duration and level of long-term care will vary from person to person and often change over time. Here are some statistics (all are "on average") you should consider:
    • Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and support in his or her remaining years.
    • Women typically need care longer (3.7 years) than men (2.2 years).
    • One-third of today's 65-year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years.

Health Savings Accounts (HSA) let you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in a Health Savings Account (HSA) to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs. HSA funds generally may not be used to pay premiums.

Flexible Spending Accounts (FSA) are a pre-tax benefit account through an employer than can be used to pay for eligible dependent care services.

Familiarize yourself and take advantage of all the benefits your employer offers. This may include employee assistance programs (EAPs) with mental health counseling, discount programs, flu shot or wellness care reimbursement, etc.

Retirement Planning is a concern for most Americans. We all want financial security and financial freedom of choice both now and during retirement. Use this financial calculator to estimate how much to save each year to accumulate enough money for your projected retirement. Talk to your Human Resources team to learn more about your employer-sponsored retirement plan. The federal government encourages individuals to invest and plan for their financial future through IRS provisions that allow you to make tax-deferred investments, which provide financial security when you retire.

  • Retirement Plans
    • Individual Retirement Accounts (IRAs) come in many forms, but they all let you make tax-deferred investments. Learn more about the types of IRAs, contribution limits, distributions, withdrawals, rollovers, and tax reporting. You can contribute to an IRA as well as your employer-sponsored plan.
    • Employer-sponsored investment plans include 401ks, Thrift Savings Plan, 457, and 403bs. A 401(k) is a feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts.
      • In 2023, contribution limits increase to $22,500 per year and catch-up contributions for those who are 50 and older, increase to $7,500.
      • Don’t pass up free money! Many employers match up to a certain percentage of what you contribute into your retirement plan. Talk to your Human Resources team to find out if your employer offers this benefit and, if so, always take advantage of it.
    • Other employer-sponsored savings plan may include Employee Stock Purchase Plans (ESPP), deferred contribution, or savings plans that provide tax-advantaged treatment and/or a matched contribution. Talk to your Human Resources team to find out more about what your employer offers.
  • Social Security is an integral piece of your retirement income. Your personal my Social Security account gives you secure access to information based on your earnings history and interactive tools tailored to you. With your my Social Security account, you can plan for your future by getting your personalized retirement benefit estimates at age 62, Full Retirement Age (FRA), and age 70.
  • Tax withholding can significantly impact your cash flow. Use this tool to estimate the federal income tax you want your employer to withhold from your paycheck.

Remember that benefit selection is typically annual. But if you have a qualifying life event such as having a child or the loss of a spouse, you can elect to change some aspects of your plans at other times of the year.

With so many employers offering open enrollment seasons towards the end of the calendar year, we encourage you to give yourself the gift of financial security by reviewing all your financial and health benefits, as well as your general financial situation. This will ensure you make the most appropriate selections this year. The future you – who is healthy and financially secure – will thank you.