As we head into the new year, it’s essential to take a closer look at our employee benefits and ensure that we’re making the most of them. Employee benefits are often overlooked as they are automatically deducted from our salaries, but they can play a significant role in optimizing our overall financial portfolio for 2023.
Wealth advisor Elke Brink emphasizes the importance of taking a holistic view of our personal finances and factoring in all of our employer-provided benefits when assessing our risk and investment strategies. This includes considering additional life cover if needed and exploring other investment options outside of our employer’s retirement fund if they don’t align with our investment goals. Regularly reviewing and adjusting our benefits is also essential as our needs and circumstances change.
Cost and tax implications are also important factors to consider when evaluating employee benefits. Brink recommends doing a cost comparison for risk benefits to see if increasing life cover on the group scheme would be cheaper than getting additional cover in our personal capacity. Additionally, when it comes to retirement funds, it’s important to look at the combination of everything to benefit from our annual tax benefit of up to 27.5% of our taxable income.
For those offered share incentives, it’s crucial to factor them into our overall investment portfolio and ensure that we are well diversified. Understanding the tax implications around share options is also essential, particularly when selling shares when leaving the company.
But what happens to our benefits when we resign or retire from a company? Brink provides valuable insights into this, starting with the importance of updating beneficiaries for both retirement funds and life cover at work. Recent legislative changes mean that not having a nominated beneficiary can result in your benefits going to your estate, which may not align with your wishes. Therefore, making sure you have nominated beneficiaries is crucial.
Brink also stresses that, although many people may go to their personal financial advisor for assistance, HR or payroll is usually the first point of contact for making changes to your benefits. With larger companies, there may be an individual specifically designated as the head of benefits, and they may refer you to a group advisor who can assist you further.
When it comes to workplace benefits, making sure you have nominated beneficiaries is crucial. But it’s also essential to take a holistic view of our personal finances and factor in all of our employer-provided benefits when assessing our risk and investment strategies. By understanding the various components of our benefits and taking necessary steps when resigning or retiring, we can protect our financial future and ensure a smooth transition. So, take the time to review and adjust your employee benefits for 2023 and beyond.
In conclusion, as we head into 2023, taking a closer look at our employee benefits and ensuring that we’re making the most of them is crucial for optimizing our financial portfolio for the future. By understanding the various components of your benefits and taking necessary steps when resigning or retiring, we can protect your financial future and ensure a smooth transition. Meet an Expert today or Contact Us for more information.