- Benefit packages are more complex than ever—the key is to find the right one for your needs.
- Choosing a benefit that costs less now could cost you more in the future.
- Benefits like health insurance and 401(k)s should work in tandem.
When it comes to health insurance, there’s much more to consider than the “sticker price.” Out-of-pocket costs for doctors’ visits and prescriptions, as well as the amount of your deductible, should factor into your thinking, too. Many people can be better prepared for a large medical bill by choosing a low deductible. Usually—and especially for people with persistent medical issues—when expenses surrounding doctor visits are kept low, overall costs wind up being lower.
A high deductible plan that costs less per month protects you from the costs of catastrophic illness and not much more. A plan like this might work for someone who anticipates only needing a checkup or two per year, which means you would need to be young or in exceptional health for it to wind up being advantageous for you.
When it comes to retirement savings, we recommend investors utilize the tax advantages of employer offerings such as a 401(k) and a Health Savings Account (HSA). HSA assets can be carried over year-to-year, grow tax free and be used tax free to cover long-term health expenses in retirement. Find out more about how to make your benefits work together to give you the retirement you want. Read this issue of Modern Retirement Monthly .