Jean Chatzky
Do one thing: Don’t wait until the last minute – or last day – to update your employee benefits during open enrollment. Set aside an hour or more to review what’s available (and what may be changing) before the deadline.
Healthcare Costs Could Rise for Many in 2026
With open enrollment in process or on the horizon for hundreds of thousands of U.S. employees this year, it’s important to take time to consider all that is offered through your employer, and to determine as soon as possible which benefits may change or potentially take more cash from your paychecks in 2026.
New Study Shows Shifting Costs
A new study from global HR consulting firm Mercer finds that an increasing number of companies are considering shifting more healthcare costs to their employees by bumping up deductibles or other out-of-pocket expenses. This year, 51% of the approximately 1,700 businesses surveyed by Mercer said it was “likely or very likely” that they would shift more costs to workers in 2026, compared with 45% of firms that reported in 2024 that they were considering that strategy.
With that in mind, it’s more important than ever to determine how to make the most out of the array of benefits offered by your employer.
“Most people treat open enrollment like jury duty – something to get through as quickly as possible,” says Filip Telibasa, CFP, owner and planner at Benzina Wealth. “But if you slow down and approach it strategically, employer benefits can add tens of thousands of dollars to your bottom line over time.”
We asked several Certified Financial Planners to weigh in on how they guide clients during open enrollment season to maximize their benefits. Consider these tips to maximize your benefits from your employer.
Evaluate Your Health Insurance
Matthew Hofacre, CFP, founder and senior financial planner at Pay It Forward Financial Planning, says open enrollment is a particularly important time to re-evaluate your medical insurance benefits if you are anticipating a life change, such as welcoming a new family member or a major (and costly) surgery that also includes rehab such as a knee, shoulder or hip replacement. “If you are, you will want to evaluate how different plans will cover such a medical event.”
Things to Keep in Mind for Open Enrollment
- Planning to have a child
- Planning a major surgery
- Need extensive rehab
- Pay careful attention to the tradeoffs you’re making when you opt for a lower deductible at the cost of higher premiums, or vice versa.
If you’re not anticipating using healthcare services differently this year than last year, note how the math on last year’s choice worked out for you. Would you have been better off paying more up front and less on the back end?
Retirement Accounts
When it comes to the workplace retirement accounts you’re offered, the most important thing -bar none – is that you’re enrolled and participating. Additionally, make sure that you:
- Get the match. With a 401(k) and similar employer-sponsored accounts, it’s important to always make sure you are contributing enough to receive the full employer match. Otherwise, you are leaving money on the table every year. Check in with your HR department if you are unsure of how much you need to contribute to get the full employer match.
- Max out your 401(k). For those younger than 50, the maximum contribution in 2025 is $23,500, notes Hofacre. But those who are aged 50 to 59 can contribute an additional $7,500 into a plan, for a total maximum contribution of $31,000. And for those who are 60 to 63 can make an even larger catch-up contribution of $11,250 for a total of $34,750. That’s significant and help can close the gap if you’re feeling behind on your retirement savings.
- Review 2025 contributions. As the year winds down, you should also review your pay stubs and see how much you’ve contributed year-to-date, and how much you are projected to contribute by the end of the year, to ensure you are on track. If you haven’t contributed as much as you can — and have the capacity to contribute more, reach out to your benefits department sooner rather than later.
Health Savings Accounts (HSA)
It’s hard to understate the tax savings benefits you can get from utilizing a Health Savings Account or HSA. “You get a triple benefit – deductible contributions, tax-free growth, and tax-free withdrawals for qualified healthcare expenses,” says Telibasa. “Just remember it comes with a higher deductible plan, so I only recommend it if you have the cash flow to fund the HSA and don’t expect higher than average medical expenses for the upcoming year.”
Want to learn more? Check out this guide to HSA accounts.
Flexible Spending Accounts (FSA)
These are useful for healthcare or dependent care, but less flexible than an HSA account since most dollars are “use it or lose it” by the end of the year, says Teibasa. “I advise clients to only contribute what they know they’ll spend.” Additionally, be mindful that you can’t contribute to both an HSA and an FSA in the same year.
Disability Insurance
Disability insurance may not always be top of mind, but it should be considered. After all, if you are supporting your household and you are injured and can’t work, you want to be sure you can still cover your bills every month. The strategy here is if you can elect to pay the premium with after-tax dollars, do so, explains Telibasa. That’s because if you ever need the benefit, the income comes to you tax-free. “That detail alone can be life-changing,” he says.
Legal Plans or Assistance
Many employers now offer low-cost access to attorneys to help with things like adoptions and wills. Telebasa says he has had clients get full estate plans (including wills, powers of attorney, and healthcare directives) done for pennies on the dollar through their work.
With reporting by Casandra Andrews
Chris O'Shea
