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Choosing Workplace Benefits for 2027: 401(k), Health Insurance and HSA Tips
As employees prepare to choose their workplace benefits for 2027, financial experts say taking time to review available options could make a difference in both short-term expenses and long-term financial security.
Andrew Atkins, a financial consultant with Fidelity Investments, recommends starting by looking at what has changed over the past year. Major life events such as getting married, having a child, experiencing a health issue or changes in household income can all affect which benefits make the most sense.
Atkins also suggests reviewing which benefits were actually used during the previous year, particularly health care coverage, before comparing plans and costs.
Two areas deserve special attention: retirement savings and health insurance.
For a 401(k), Atkins says employees should understand how their company's matching contributions work. An employer match can provide additional retirement savings, and employees who don't contribute enough may miss out on some of that benefit.
Workers who can choose between traditional and Roth 401(k) contributions should also consider whether paying taxes now or during retirement makes more sense for their financial situation.
When comparing health insurance plans, Atkins says to look beyond the amount deducted from each paycheck. Employees should consider deductibles, out-of-pocket expenses, prescription coverage and whether their preferred doctors are in-network.
He also recommends looking into a health savings account, or HSA, if one is available through an eligible health plan.
An HSA allows eligible individuals to set aside money for qualified medical expenses with potential tax advantages. Contributions are generally tax-deductible or made pre-tax, investment growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
Eligible expenses can include prescriptions, co-pays, sunscreen, eyeglasses and braces. Unlike some other health care accounts, HSA funds generally roll over from year to year and remain with the account holder when changing jobs.
Atkins says workplace benefits should be viewed as parts of one overall financial plan. A 401(k) can help build retirement savings, while an HSA can help prepare for future medical expenses.
Fidelity Research estimates that a 65-year-old retiring in 2026 could spend approximately $185,500 on health care throughout retirement, even with Medicare. That estimate does not include long-term care expenses.
Atkins says employees should consider what they can afford to save, their health care needs, employer contributions and long-term financial goals before making their selections.
More information about workplace benefits is available at fidelity.com/benefits.
By: NBC Palm Springs
October 30, 2026
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