Vacation days, health care, pension plans: How to make the most of your compensation.
Updated: Oct 9
Original article by:
Ritika Dubey
The Canadian Press
June 18, 2024
📰 Read the ORIGINAL ARTICLE here.
I spoke with The Canadian Press about why your paycheque is only part of your compensation, and how to get full value from your workplace benefits. Here are the highlights and my contributions.
Key Takeaways
Benefits like health coverage, vacation time and retirement matching are part of your pay, and leaving them unused means leaving money on the table.
Read your benefits package yourself before meeting with HR, and review it again after a promotion, when new perks often kick in.
Look for lesser-known perks such as fitness allowances, home-office equipment, phone bill coverage, parking and professional development funding.
Set aside time each quarter to check whether you've used your health and dental coverage.
Many employees contribute at their plan's default rate, which can fall short of the maximum employer match.
My Perspective
Even the most common benefits, like vacation and health coverage, often go underused. Every dollar your benefits cover is a dollar you don't have to spend yourself. Many people skip their paid time off because they can't afford to travel, but you can still take the time, stay home, rest and get paid your full wage. Remember that unused vacation days usually expire early the following year.
"If you don't use it, you will lose it. That is money left on the table."
Retirement matching is the benefit I find younger clients most often overlook, so I run the numbers with them. Someone earning $80,000 a year with a three per cent employer match receives an extra $2,400 a year toward retirement. Over 30 years, that can grow into roughly $1,000 a month of additional retirement income, about five times what they put in.
"When you have a matching program with your employer, that's a deal that's hard to beat."
Originally published by The Canadian Press, written by Ritika Dubey, on June 18, 2024. Use the link at the top of this post to read the full article.
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