Why unused benefits matter
Employee benefits are not “extras”; the Bureau of Labor Statistics estimates that benefits account for about 29.5% of total compensation, meaning that underusing them is like walking away from almost 30% of your potential pay package. Studies also suggest that employers spend roughly 20–30% of payroll on benefits, and that as much as 20–40% of that spend may go unused, turning carefully designed programs into silent waste rather than value for you and your family.
For high‑earning professionals, this underutilization can compound over the course of decades. A mid‑sized company with a 25% benefits allocation on a $50 million payroll might see over $3 million a year in benefits employees never use—illustrating just how significant the opportunity is when individuals fully engage their plans.
Retirement benefits you may be underusing
Retirement plans are consistently rated among the most important workplace benefits, yet many participants still fail to fully take advantage of their employer match. A 2105 landmark study by Financial Engines examining 4.4 million retirement plan participants at 553 companies found that one in four employees did not contribute enough to receive the full 401(k) match — missing an average of $1,336 per year, or about 2.4% of annual income.
More recent data suggests the problem persists: Vanguard’s 2024 research on 401(k) match optimization found that lower-income workers frequently under-contribute relative to their plan’s match cap, and a 2023 CNBC survey found that four in ten workers with a 401(k) don’t contribute to their plan at all.
Health, wellness, and protection benefits
Health and wellness benefits often go underused, even though they can directly reduce out‑of‑pocket costs and help protect long‑term earning power. Common examples include unused preventive care visits, wellness incentives, telehealth options, and employee assistance program (EAP) counseling sessions, all of which employers may have already budgeted and paid for.
When employees skip preventive care, self‑funded employers may see higher avoidable medical costs, but employees also miss an opportunity to detect issues early and reduce lifetime healthcare expenses. For families focused on building and preserving wealth, consistently using covered preventive services and wellness resources can function as a form of “health insurance alpha” that supports both quality of life and long‑term financial stability.
Financial, legal, and lifestyle perks
Many organizations now include financial education tools, legal benefits, or voluntary insurance plans that go largely unnoticed. Underused offerings can include on‑demand financial guidance, debt-management assistance, will‑drafting or legal document services, and supplemental accident or hospital indemnity policies that employees rarely claim.
Research on employee sentiment indicates that less than a quarter of workers feel their benefits package fully meets their needs, suggesting a significant gap between what is available and what is actually understood. For affluent families who already work with an advisor, coordinating these workplace tools with a broader wealth, tax, and estate strategy can reveal new ways to fund goals without increasing personal spending.
How Carter can help you unlock hidden value
Carter Financial Management’s planning process integrates employer plans—retirement, stock options, health benefits, and more—into a cohesive strategy tailored to each client’s goals. Advisors routinely review employer retirement plans and other benefits as part of portfolio and plan management, helping clients identify missed matches, optimize contribution levels, and prioritize which benefits to use first.
This content was created with the assistance of artificial intelligence (AI). While efforts have been made to ensure accuracy, the content should be reviewed by a qualified financial advisor before implementation.
The information has been obtained from sources considered reliable, but we do not guarantee that the foregoing material is accurate or complete. This material is for informational purposes only and should not be considered investment, tax, or legal advice.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Carter Financial Management is not a registered broker/dealer and is independent of Raymond James Financial Services.
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