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Welcome to…

Meet The Speakers

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Kathy Sweedler Consumer Economics Educator University of Illinois Extension

Andrea Pellegrini Assistant Director

Student Money Management Center

In what state and/or county are you located?

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Where are you in the job seeking process?

Not started Applying

Interviewing Receiving Offers

Have a Job

Why Do Benefits Matter?

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Increase Your Standard of Living

Informed Employees are Best-Suited for Making Decisions on Employee-

Sponsored Retirement Plans.

Make the Most of Compounded Interest

Retirement Plans

Credit bureaus collect

information about your credit use

Time OffFrom Work

Savings & Investments Others

Defined Benefit

401(k)

Etc.

Vacation

Sick Leave

Maternity

College

Mutual Funds

Stock Options

Wellness

Insurance

Etc.

Insurance

Disability

Life

Unemployment

Dental

Vision

Health

HOW MUCH IS HEALTH INSURANCE WORTH AS A BENEFIT OF EMPLOYMENT?

Value of Employer Health Benefits

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~ $6,435 annually for single coverage

~ $18,142 annually for family coverage

“Employer Health Benefits: 2016 Summary of Findings,” The Kaiser Family Foundation and Health Research and Educational Trust, 2016, http://kff.org/report-section/2013-summary-of-findings/.

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Cum

ulative Prem

ium Increases

63%

31%* 20%*

14% 12% 6%

15% 16% 11%

0%

20%

40%

60%

80%

100%

2001 to 2006 2006 to 2011 2011 to 2016 Premium Increases Overall Inflation Workers' Earnings

* Percentage change in family premium is statistically different from previous five year period shown (p < .05).

SOURCE: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2001-2016. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 2001-2016; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey, 2001-2016 (April to April).

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Increasing Em

ployee Costs

NOTE: Average general annual deductible is among all covered workers. Workers in plans without a general annual deductible for in-network services are assigned a value of zero. SOURCE: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2011-2016. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April), 2011-2016; Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey, 2011-2016 (April to April).

Cumula&veIncreasesinHealthInsurancePremiums,GeneralAnnualDeduc&bles,Infla&on,&Workers’Earnings,2011-2016

6%11%

63%

19%

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015 2016

OverallInfla&onWorkersEarningsSingleCoverageDeduc&bles,allWorkersSingleCoveragePremiums

…AND you may not be eligible for some benefits.

Keep in mind that employers may not have all the benefits,

Access to Job Benefits

Benefit All Workers Management & Professional

Retirement 66% 81%

Medical Care 67% 86%

Life Insurance 55% 75%

This slide shows the percent of people with access to job benefits: For All Workers and Management, Professional & Related Occupations in private industry, National Compensation Survey: Employee Benefits in the United States, Bureau of Labor Statistics, March 2016.

Discussion

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What kind of benefits do you need?

What kind of benefits are most valuable to you?

Retirement Plans

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Type Access Participation

Professional & Management All Professional &

Management All

Defined Benefit 25% 18% 21% 15%

Defined Contribution 77% 62% 63% 44%

Tax-deferred Savings Plan

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Save in Tax-Deferred Plan Take Money Home

Salary $100 $100

Pay Taxes $0 $28

Save $100 $72

More Money to Grow

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Tax-Deferred Non-Tax-Deferred

Money from Salary $5,000 $5,000 Investment Year 1 $5,000 $3,600 Value in Year 20 $28,022 $12,368

Value After Withdrawing Money & Paying Taxes $20,176 $12,368

Steps For Success

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ü Compare benefits when looking for a job

ü Review your budget before choosing

ü Coordinate benefits with spouse’s benefits

ü Review choices annually

Alphabet Soup?

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Simple 401(k)

401(k)

457

SEP

Roth IRA

403(b)

Simple IRA

Roth 401(k)

SURS

Employer Match: A Bonus

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$0 $50,000

$100,000 $150,000 $200,000 $250,000 $300,000 $350,000

$50/$75 $100/$150 $200/$300

Your Contribution's Value at Retirement Value With Employer's Match

Comparing Job Benefits

Job A 1 day/month paid vacation

1 day/month paid sick leave

On-site child care + $100 discount monthly

Option to buy group health insurance; costs $300

Job B 1 day/month paid time off for vacation OR sick leave

Paid health insurance worth $300 per month

Free lunch daily

Job C 2 days/month paid vacation

1 day/month paid sick leave

5% salary ($180) contributed to retirement plan

Which job would you recommend Jenna take? Why?

Comparing Job Benefits

Job A $160 1 day/month paid

vacation

$160 1 day/month paid sick leave

$100 On-site child care + $100 discount monthly

$? Option to buy group health insurance; costs $300

Job B $160 1 day/month paid

time off for vacation OR sick leave

$300 Paid health insurance worth $300 per month

$100 Free lunch daily

Job C

$320 2 days/month paid vacation

$160 1 day/month paid sick leave

$180 5% salary ($180) contributed to retirement plan

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Time Makes a Difference

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When you’re saving for the future, starting NOW makes a big difference.

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Time Value of M

oney

0

100

200

300

400

500

2 4 6 8 10 12 14 16 18 20 22 24 26 28 30

Invest $100 at 5% Interest for 30 Years and Watch Your Money Grow

Dollar Amount

Retirement Plans

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Age Contributions Made Early

Contributions Made Later

22-30 (9 Years) $4,000 annually $0

31-65 (35 Years) $0 $4,000 annually

Total Saved $36,000 $140,000

Amount Available at 65 $1,063,244 $862,843

Turn Your Dreams Into S.M.A.R.T. Goals

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S = Specific M = Measurable A = Agreed Upon R = Realistic T = Timely

Example of a Financial Goals List

Date Goal Total Dollar

AmountTarget Date to

be Done Date Done Dollar Amount Needed

1/1/2017 Have house down payment

$6,000 12/31/2020 $167/ mo. Or $42/ wk.

1/1/2017 Sign-up for retirement savings plan

9/15/2017 $250/ paycheck

As a result of today’s webinar, what do you plan to do?

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a.  Ask questions about benefits from future employers. b.  Set financial goals. c.  Save money for retirement within two years of

graduating from college. d.  More than one of the above. e.  None of the above.

Financial Literacy Badges Program

Take a step towards the Earning Badge.

What’s Your Job Worth Quiz: go.uillinois.edu/jobworthquiz

More information about the Financial Literacy Badges Program can be found here: GO.UILLINOIS.EDU/FLBADGES

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Stay in Contact with Us!

Financial Wellnessweb.extension.illinois.edu/financialwellness

Student Money Management Centerstudentmoney.uillinois.edu

Questions?

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Actions Taken by Firm

s in R

esponse to AC

A’s E

mployer M

andate, 2015

ǂ Firms were asked if they took the relevant action in response to the Employer-Shared Responsibility Provisions. Firms with 50 or more full-time equivalents and that offer health benefits were asked these questions. A significant number of employers (mostly large employers) did not know how many FTEs they employed. In these cases, firms with 50 or more workers were asked these questions. Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2015.

10%

4%

4%

2%

13%

3%

5%

3%

0% 10% 20% 30%

Changed some job classifications from part time to full time so that employees WOULD be eligible

Changed some job classifications from full time to part time so employees

would NOT be eligible

Reduced the number of full time employees the firm intended to hire because of the cost

of providing health benefits

Increased the waiting period before new employees are eligible for health benefits

All Large Firms (200 or more Workers)ǂ

All Firms (50 or More FTEs)ǂ