02.05.2024 By Carolyn Pemberton

Making the Most of Your Employer's Financial Wellness Benefits

More and more workers are gaining access to financial wellness benefits through their employer. If you have access to such a menu of financial wellness benefits, deciding which ones are the most advantageous for your personal situation may require some careful consideration. Using benefits and services provided through your employer can eliminate the need for you to research and compare a multitude of companies – your employer has done that work for you.

More and more workers are gaining access to financial wellness benefits through their employer. If you have access to such a menu of financial wellness benefits, deciding which ones are the most advantageous for your personal situation may require some careful consideration. Using benefits and services provided through your employer can eliminate the need for you to research and compare a multitude of companies – your employer has done that work for you. 

Still before signing up for specific benefits, America Saves recommends taking the following steps to help you confidently choose the best services and programs for your personal situation.
    1. Get a clear view of your finances by using the America Saves Spending and Saving Plan. Taking this step will help you understand exactly how much money you have coming in from all sources, which expenses are nondiscretionary, and which are discretionary, as well as how much money you are able to save. Using this tool will help you understand exactly where you are and what the next best step is for you depending on your financial goals.

 

    1. Review information from your employer about all the financial wellness benefits offered. You may find this information online through an employee portal, in an employee handbook, or by requesting it from the human resources department.

 

    1. Compare the benefits offered that relate to your specific financial goals. If one of your goals is to save money for emergencies, then an employer sponsored emergency savings account may work for you. If you want to start saving for your children’s college education, then opening a 529 education saving account through your employer could be a good choice. This decision is unique for everyone, and we encourage you to make sure it aligns with your personal values. When spending and saving habits align with your personal values you are more likely to stay committed to any financial habits you begin to incorporate.

 

    1. Remember the importance of benefits designed to meet future needs. Often saving for retirement seems so far off that we delay participation in an 401(k) plan. The same may be true for disability or life insurance. While you may not think these types of insurance are necessary when you are young, both serve vital purposes, so it is important to explore these benefits. Sometimes there is no cost to participate, you simply need to sign up.

Once you have decided which benefits you want to use, make sure you understand the eligibility requirements to participate in the benefit. For example, you will want to:

  • Know if the retirement savings plan has a vesting period for receiving employer matching contributions.
  • Understand tax implications such as after-tax contributions to a workplace ROTH 401(k).
  • Understand the repayment policies for small dollar loans.
  • Know what happens if you leave your employer for another job? Do you lose any contributions or must repay any outstanding loans?

After you have decided which benefits best suit your personal situation, you’re ready to enroll. There may be different instructions for each different service so be sure you follow the instructions provided by your employer.  Do you:

  1. Sign up using an online form?
  2. Need to talk to a representative from the company providing the service?
  3. Need to enroll in person?

After you have enrolled in your chosen benefits, be sure to stay abreast of any changes or news regarding the programs by signing up for email newsletters or other communications.

Using the financial wellness benefits provided by your employer can help you reach your personal financial goals, typically with trustworthy and reliable companies. Remember America Saves can also provide you with additional information to support you in your saving and financial goals. We’re here to help you continue to take the next best step on your financial journey.

Be sure to check out the America Saves Resource Center.

 

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