Open Enrollment: 5 Steps to Review Your Benefits

Fall is here; have you reviewed your workplace benefits yet?

For most American employees, open enrollment kicks off in October and November, and wraps up in January. This is your opportunity to assess your benefits and make any changes as you head into the new year. 

Here are five steps to review your benefits in 2025:

Review Your Benefits: Reflect on the Past Year

Many people re-enroll for the same benefits year after year, but that approach might mean you’re not receiving the best possible benefits for you and your family.

Make note of what you spent on healthcare this year so far, and know your deductible, copay and premium costs amounts. That information will be key if you’re comparing different plan options.

You should also pay attention to any life changes you’ve experienced over the past year, like a marriage, divorce, birth, or health changes. Different coverage options might be a better fit to support those changes in the new year.

Even if nothing has changed, review your benefits to help you determine if the coverage you have now is still the best choice going forward. 

Review Your Benefits: Familiarize Yourself with Changes or Updates

A lot can change in a year, and not being aware of changes in your benefits could be a costly mistake.

If your employer opts for a new insurance company, for example, that could change everything from your deductible and copays to covered providers and services. 

But even more subtle changes can have an impact on what you pay and which providers you can see, so review that information every year.

Review Your Benefits: Adjust Retirement Contributions

Does your employer offer a match for retirement savings? Employer match programs can match all or some of your contributions to an employer-sponsored retirement account, so take this opportunity to enroll if you haven’t already. 

The match doesn’t just have to be in a 401(k) or 403(b) plan, either; some employers will also match Roth 401(k) or Roth 403(b) contributions, as well. 

Review Your Benefits: Know Your Insurance and Healthcare Needs

Your company may offer several different insurance policies. Get to know your options ahead of time so you can select the best possible choice:

• Long-term group disability insurance – If you rely on an income, then signing up for this insurance is essential (read more about that here.) But not all disability insurance policies are created equal, so make sure you understand your options. For example, sometimes the employer pays the premium. But if you pay it, you will receive the benefit tax-free. Also be aware of any waiting periods associated with your policy, and have money set aside to help you ride out that waiting time.
• Short-term disability insurance – A short-term disability insurance policy is intended to cover your expenses for a shorter period of time, usually three to 12 months. However, it can be replaced with an adequate emergency fund. If you’re in the process of setting up a stable emergency fund, a short-term disability policy could be right for you.
• Life insurance – The average employer life insurance policy you will come across is going to cover 1-2 times your salary. However, this is probably not going to be enough money for your family. You can opt for your employer’s policy regardless, but it’s a good idea to supplement insurance in your policy or buy an additional policy outside of work. It’s also a smart idea to pick up some additional life insurance that will travel with you, in case you leave your current job.
• Health Savings Accounts (HSA) – An HSA is a savings account that lets you add pre-tax money and withdraw it tax-free for medical expenses. Any money leftover at the end of the year will roll over to the next one.
• Flexible Savings Account (FSA) – An FSA is similar to an HSA in that it allows you to pay for qualified expenses with pre-tax money. However, unlike an HSA, the funds in your FSA account do not typically roll over to the next year. Check the rules with your employer, as some FSAs do allow for a short grace period in the new year.

Don’t Miss Overlooked Benefits

If you don’t read through all of your open enrollment materials, you could be missing out on perks that you didn’t realize you had.

Here are some of the more common ones to look out for:

• Health perks – In an effort to promote healthier lifestyles, some plans offer smart watches, gym membership discounts, apps for mental and physical health and other incentives to encourage employees to prioritize wellness.
• Dependent Care Flexible Spending Account (FSA) – A dependent care FSA allows you to use pre-tax money to pay for daycare or other qualified care expenses. 
• Tuition Reimbursement – Some companies incentivize employees to continue their education by offering to reimburse their tuition expenses. There are typically stipulations like grades and how long you plan to stay with your company after your class, but these programs can be immensely valuable.
• Legal Services – If your employer offers legal services, they tend to be more affordable than if you were to hire someone on your own. This is another perk to keep in mind should you need it.

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