When most people consider a job offer, they tend to focus on one thing: salary. But while your paycheck is important, it’s only one piece of the puzzle. Your full compensation package also includes your employee benefits—retirement accounts, insurance, personal time off, and much more.
Yet employee benefits are about more than just securing your family’s health or having the freedom to take time off from work—they also play a critical role in your long-term financial planning. By maximizing these benefits, you’ll not only help protect yourself and your family, but also build a foundation for financial stability and growth.
When accounting for benefits, your total compensation can be significantly higher than your base salary alone, and not taking full advantage of them could mean leaving money and opportunities on the table.
Insurance
One of the most fundamental parts of any benefits package is insurance. These plans not only protect you from surprise bills, but also help ensure that your income will be protected in the event of illness or injury.
Health, Vision, and Dental Insurance
Group health plans are often far more affordable than individual policies, and can cover you, your spouse, and your dependents. Vision and dental benefits may seem minor, but regular preventive care can prevent costlier health issues down the line.
One thing to consider when choosing health insurance: Many employers offer high-deductible health plans in addition to more comprehensive coverage. High-deductible plans often include Health Savings Accounts (HSAs), which can be a surprising retirement planning tool if utilized properly.
Traditional health insurance plans often include Flexible Savings Accounts (FSAs), which allow you to set aside pre-tax income that can be used for health care expenses. However, these plans are typically “use it or lose it” and money left in the account at the end of the year is lost—though some plans allow you to roll over some money.
Life Insurance
Many employers offer a base amount of life insurance—often no more than double your salary—at no cost. Additional coverage may be available at group rates, providing more protection for your loved ones, especially if you have dependents or debt.
Disability Insurance (Short- and Long-Term)
Disability insurance helps ensure you can continue to collect income if you’re rendered unable to work by illness or injury. These policies typically provide a percentage of your income—often 60% to 70%—in these scenarios.
Accidental Death & Dismemberment / Critical Illness Insurance
These supplemental coverages can provide lump-sum payouts in specific situations, such as a stroke, heart attack, or fatal accident.
Retirement Plans
Retirement plans offered through your employer are often one of the most effective ways to build long-term wealth.
401(k) and Roth 401(k) Plans
401(k)s are the most common employer-offered retirement plans. Traditional 401(k) contributions are pre-tax, which reduces your taxable income today, while Roth 401(k) contributions are made with after-tax income, allowing for tax-free withdrawals in retirement. Many employers offer matching contributions, which should always be maximized if possible.
And though these plans have annual contribution limits, you can often make additional “catch-up” contributions once you’re over a certain age.
Other common employee retirement plans include IRAs (traditional and Roth), 403(b) plans, SEP IRAs, and SIMPLE IRAs.
Health Savings Accounts (HSAs)
If you’re enrolled in a high-deductible health plan, you may have access to an HSA. Like FSAs, these savings accounts allow you to pay for health care expenses using pre-tax money. Unlike FSAs, money in an HSA can be rolled over into the following year, and because the account belongs to you, you’ll keep your HSA even if you move to a new job.
Because of those qualities, an HSA can be used as a triple tax-advantaged account. Your contributions are tax-deductible and can be invested, growth on those contributions is tax-free, and withdrawals made for medical expense are tax-free. Investing in an HSA early in your career can help set you up long-term for covering medical expenses in retirement.
Pension Plans
Although rare today, some employers still offer pension plans that provide guaranteed income in retirement.
Holistic Financial and Legal Support
Many employers are now offering programs that go beyond traditional benefits to support employees’ overall financial wellness.
Financial Wellness Programs
Programs like these might include budgeting tools, student loan assistance, debt management counseling, or one-on-one sessions with a financial advisor.
Legal Assistance
Some companies offer legal service plans that cover basic legal needs like writing a will, resolving housing disputes, or even family law matters.
Cybersecurity Services
With identity theft and other cybercrimes on the rise, employers may provide monitoring services, fraud protection, or recovery support, often through annual subscriptions.
Tuition Assistance
Some employers will offer tuition reimbursement up to a certain amount, though there may be limits on the classes or institutions it can be used for. In some cases, this assistance can also be used toward paying off student loans.
Flexibility and Work-Life Balance
Time is one of your most valuable resources, and many companies now recognize this by offering generous paid time off and flexible work arrangements.
Paid Time Off (PTO)
Whether it’s for vacation, personal time, or sick days, PTO ensures you get paid while taking time away from work. Some companies will give this benefit upfront at the beginning of the year, while others will have you accrue it throughout the year.
Flexible Work Arrangements
Remote work, compressed workweeks, summer hours, and hybrid work models are becoming increasingly popular, especially for employees with children or difficult commutes.
Wellness Programs
These programs may include reimbursements for gym memberships or other wellness-related expenses, access to nutritionists, or mental health support.
Family and Dependent Support
Many companies are increasingly attuned to their employees’ needs outside of work, which has led to them offering family-focused benefits.
Parental Leave
Paid parental leave allows new parents to take time off to bond with their child without sacrificing income. Some policies even allow parents to split their parental leave over the first year after the child’s birth, instead of using it all at once.
Dependent Care Assistance
Pre-tax flexible spending accounts and reimbursement programs can help parents offset the cost of daycare, after-school programs, or summer camps.
Elder Care Resources
Elder care support—like caregiver assistance programs or referral services—can help employees navigate the challenges of caring for aging parents while managing their careers.
A Benefit to Your Full Financial Plan
Employee benefits aren’t just “nice-to-haves”—they’re essential tools that can protect your health, grow your wealth, support your family, and enhance your overall quality of life.
If you want to make the most of your employee benefits, reach out to us today.
Matt Lewis is a non-registered associate of Cetera Wealth Services LLC (formally known as Cetera Advisor Networks, LLC)
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