Key takeaways:

• Open enrollment can serve as an annual financial check-up, not just a health plan review

• Reassessing coverage may prevent overpaying for healthcare

• HSAs and FSAs can offer possible tax advantages to help boost long-term savings

• Even a 1% increase in workplace retirement contributions can potentially grow over time

• Exploring underused workplace perks may help reduce out-of-pocket costs

Open enrollment isn’t just about picking a health plan. Reframing it as an annual opportunity to do a savings check-up and tap into employee benefits that may be underutilized could potentially lead to savings in the year ahead and over time.

It may be tempting to treat open enrollment season like a once-a-year formality — select a health insurance plan and move on. But this annual window can also be an opportunity to pause, take a broader look at overall financial well-being, and rethink some money-related choices. Approaching open enrollment as a built-in “financial check-up” and making small adjustments can potentially lead to meaningful savings throughout the year.

Reassess health coverage

More than half of Americans (53%) report that cost is the primary driver for choosing benefits during open enrollment — yet 41% say they would have made different elections if they had a better understanding of the options. And upfront costs don’t always equate to long-term savings.

While it can be easy to simply pick the same health plan each year, costs and needs can change over time. It can be worthwhile to use the open enrollment period to evaluate plan details like premiums, copayments, deductibles, and any other potential out-of-pocket expenses to identify the plan that best fits individual or family needs and help avoid paying more than necessary for coverage. How do these align with doctor visits and coverage used in the past year? Be sure to look at specifics of what’s covered and at what cost, for everything from annual visits and preventative screenings to immunizations. Taking a critical, closer look might reveal that a different plan may offer better value to realistically meet needs. For instance, those who expect frequent medical visits might benefit from a plan with higher premiums but lower cost-sharing, while individuals with minimal healthcare needs may prefer a lower-premium option.

Read more: Over half of Americans choose their benefits by price

Leverage tax-advantaged accounts

If Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are offered as part of a benefits plan, adjusting contributions to these accounts during open enrollment can go beyond helping manage medical expenses to potentially help boost long-term savings and minimize tax liability.

HSAs. Nearly one quarter of Americans (24%) set aside money in HSAs, which offer a unique trifecta of tax advantages: Contributions are tax-deductible, any earnings are tax-free, and withdrawals for qualified medical expenses are tax-free.¹ In 2025, the IRS raised HSA limits to $4,300 for individuals and $8,550 for families, and people age 55 or older can contribute an extra $1,000 as a catch-up amount. HSA funds roll over from year to year with no “use-it-or-lose-it” penalty, and unused balances can be invested.

HSAs show a correlation with saving and engagement: The average defined contribution balances of non-HSA users average $136,600, while HSA users averaged $177,400.

Read more: What are the benefits of an HSA account?

FSAs. FSAs allow for contributions to be made with pre-tax dollars, which can reduce taxable income in the short term. However, unlike HSAs, FSAs don’t roll over fully — they carry over only $660 or have a short grace period to use it or lose it. The medical FSA cap is $3,300 for 2025. When estimating how much to contribute, it may be helpful to review average monthly health spending, which was $399 in 2024, according to Empower Personal DashboardTM data.

Read more: Medical FSAs: Use it or lose it time is here

Optimize retirement savings

Since the focus is already on benefit elections and payroll adjustments during open enrollment, it can also be a good time to revisit retirement contributions. Increasing contributions to a 401(k) or other workplace plan by just 1% can potentially lead to growth over time through the power of compounding.

Employers may offer a 401(k) matching program, where they match a portion of an employee’s contribution. With the average employer match equal to about 4.5%, maximizing this benefit can meaningfully accelerate retirement savings. Be sure to pay attention to contribution amounts to get the match and not leave money on the table.

Tap into additional benefit perks

Keep in mind, open enrollment extends beyond healthcare coverage. Employers might offer optional benefits such as disability insurance, life insurance, or legal assistance programs. Other perks — such as tuition reimbursement, financial counseling, or mental health services — can further strengthen both financial and personal well-being. Be sure to explore any extras, like fitness club memberships, wellness discounts, and other perks not being utilized. Reviewing the full menu of available options could uncover opportunities for spending less out of pocket.

Read more: 5 strategies to help improve the open enrollment process

Make it a habit

Turning open enrollment into a built-in annual check-up can be one more step toward taking charge of long-term financial health. Making it part of a yearly routine can create a recurring opportunity to not only stay on top of healthcare needs but also keep retirement savings, tax-advantaged accounts, and other workplace perks aligned with changing goals. Over time, these small but intentional adjustments can potentially add up to stronger financial wellness and greater peace of mind year after year.

Read more: Time for a check-up: 7 questions to test your financial health