As a fiduciary financial planner, I help clients make confident decisions about their money, so every part of their financial life works together. Open enrollment is one of those moments where smart choices can lead to meaningful savings and better protection for your family. Here’s how to approach it from a financial planning standpoint.
1. Start with your health insurance
Most employers offer several tiers such as a PPO, HMO, or High-Deductible Health Plan (HDHP). Instead of automatically sticking with last year’s option, take a few minutes to review the details.
- Premiums: How much comes out of your paycheck each month?
- Deductible and out-of-pocket max: How much would you pay before insurance starts covering costs?
- Expected medical needs: Do you anticipate major expenses next year such as surgery, pregnancy, or ongoing prescriptions?
If you’re generally healthy and don’t see doctors often, an HDHP paired with a Health Savings Account (HSA) might make sense. HSAs are triple tax-advantaged: contributions are tax-deductible, growth is tax-deferred, and withdrawals for qualified medical expenses are tax-free. The balance rolls over each year and can even be used in retirement.
2. Max out pre-tax savings opportunities
Open enrollment is the perfect time to adjust contributions to your 401(k), HSA, or Flexible Spending Account (FSA).
- 401(k): Try to contribute at least enough to get your employer match since it’s essentially free money.
- HSA: If you’re eligible, aim to max this out each year. For 2026, the contribution limit is $4,400 for individuals and $8,750 for families (plus an extra $1,000 if you’re 55 or older).
- FSA: If you expect predictable medical or dependent care expenses, FSAs can save you money on taxes. Just remember that most are “use it or lose it” accounts.
3. Review your life and disability insurance
Many people overlook these, but they’re key parts of your financial safety net.
- Life insurance: Employer-provided coverage is often limited, usually one or two times your salary. If you have dependents, consider whether you need additional coverage outside of work.
- Disability insurance: Short- and long-term disability coverage can replace part of your income if you can’t work due to illness or injury. Review what’s covered and how long benefits last.
4. Check your beneficiaries
This is one of the simplest but most forgotten steps. Make sure your 401(k), life insurance, and other benefits list the correct beneficiaries, especially if you’ve had a major life change such as marriage, divorce, or children.
5. Use your employer’s lesser-known perks
Many companies now offer benefits beyond the basics such as student loan repayment assistance, tuition reimbursement, financial planning, legal services, or wellness stipends. Review your HR portal to see what’s available. Even smaller perks can add up over the course of a year. For example, I helped one of my client’s save a few hundred dollars off my ongoing financial planning services since he had a reimbursement credit for financial or physical wellness services.
6. Don’t wait until the last minute
Most open enrollment periods run for only a few weeks, typically in the fall. Once it closes, your options are locked in until next year unless you experience a qualifying life event such as marriage or the birth of a child. Give yourself enough time to compare plans and ask questions if something’s unclear.
The Bottom Line
Open enrollment isn’t just about picking a health plan. It’s a chance to align your benefits with your broader financial goals. A few thoughtful decisions can improve your cash flow, reduce your tax bill, and strengthen your long-term financial foundation.
If you’d like help reviewing your benefits or making sure your choices fit into your overall financial plan, schedule a consultation. A quick conversation can help you feel confident that you’re maximizing every opportunity available during open enrollment.