Stefan R. Huber | Research Analyst
January 22nd, 2020
When you are working in an organizing, you may not be aware which benefits exist. Many of these benefits can save you loads of money if utilized well. Robert Aruldoss, a senior analyst at Charles Schwab, emphasizes the value of these benefits. “The value of these extras – including retirement-savings plans, paid time off, health insurance and other benefits – can add up to about a third of your total compensation.” Are you taking full advantage of your workplace benefits? Here’s what to check:
Retirement
The first thing to see is whether your employer offers a 401(k) or equivalent retirement plan. In many cases, the company will also match your contributions, further growing your retirement nest egg. If your employer offers a plan with matching, it’s wise to contribute enough to meet the match requirements.
If you already have a 401(k) or equivalent retirement plan, you can see if it makes sense to roll it into your current employer’s plan. In some cases, it’s best to roll a 401(k) into an IRA fund. Contact a trusted financial advisor before making any big retirement decisions.
Health Care
Note the health care options that are available to you under your current employer. There are many variables to consider: network coverage, deductibles, copays, and out-of-pocket costs. It’s best to look for plans that have reputable doctors in-network, high deductibles, and few copays. Keep in mind however, that you may pay high out-of-pocket costs when choosing a plan with low premiums. Many factors should be considered before choosing a health care plan.
If you have a spouse with their own health care plan, it’s also prudent to inquire with them and determine whether you should fall under their plan or vice versa. Comparing plans and their components is the road to properly choosing the best plan for your needs.
Miscellaneous Benefits
Purchasing a life insurance plan can be done independently or through a work-sponsored plan. It’s more common to go through a designated broker, but some employers offer more competitive plans. Consult with a life insurance agent to determine which is best for you.
Many benefits offered are small initiatives that can add up when used. Every employer is different, but it’s good practice to inquire to see if such programs are available. Commuter benefits are great for workers coming from a distance, which include pretax parking and company-sponsored transit passes. For those that value education, tuition reimbursement is a great program to encourage employees and their children to skill-build. Other potentially valuable benefits are complimentary gym memberships and leading technology upgrades. Inquire with your employer to see if these benefits are available to you.
There are a broad range of benefits that employers tend to offer their workers. Which benefits are you utilizing fully? Share with other members!
Don’t forget to check out other helpful finance articles on our website.
