For many employees, the open enrollment process can be stressful. They know they need health coverage, but beyond that, the details of other benefits can feel like optional extras. Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), commuter benefits, and other pre-tax programs often fall to the sidelines.

The result? Employees leave significant amounts of money on the table every year, dollars they could have saved, invested, or redirected to reduce financial stress.

The power of pre-tax benefits is undeniable. FSAs and HSAs allow employees to set aside money before taxes to cover medical expenses, childcare, or commuting costs. Depending on their tax bracket, this can mean a 10–30% discount on everyday expenses. For someone with $2,000 in eligible expenses, that translates to $200–$600 in annual savings. With HSAs, the impact is even greater. Contributions reduce taxable income today, grow tax-free over time, and can be used tax-free for qualified medical expenses. When optimized, HSAs provide benefits at every stage, including contribution, growth, and withdrawal—a “triple tax advantage.”

And yet, participation rates tell a different story. Many employees either skip these accounts altogether or underfund them. Why? Because without clear, personalized guidance, the accounts feel complicated or irrelevant. Employees often fail to see the connection between setting aside pre-tax dollars and improving their overall financial well-being. Instead, they default to paying for expenses with after-tax income, essentially paying more than they have to.

The financial cost of these missed opportunities adds up. An employee who fails to use an FSA or HSA could easily forfeit $500 to $1,000 in tax savings each year. Over the course of a decade, that’s $5,000 to $10,000 lost. Factor in the long-term growth potential of HSAs invested wisely, and the lifetime impact can reach tens of thousands of dollars.

In these situations, smarter benefits guidance makes a measurable difference. By showing employees the concrete dollar impact of pre-tax contributions, in the context of their salary, taxes, and likely expenses, decision-making becomes simple. Instead of abstract benefits jargon, employees see: “If you put $100 a month into your HSA, you’ll save $360 on taxes this year, and that account could grow to $20,000 over the next 15 years.” That kind of clarity changes behavior.

For employers and brokers, the advantages are just as substantial. Increased participation in FSAs, HSAs, and other pre-tax benefits not only boosts employee financial security but also enhances the perceived value of the benefits package. Employees feel like their company is helping them maximize every dollar, which builds trust and loyalty. At the same time, employers see reduced payroll tax liabilities when employees shift more dollars into pre-tax programs.

The takeaway is clear: failing to optimize pre-tax opportunities is a silent drain on employee wallets and employer ROI. With the right benefits guidance, employees stop leaving money on the table, start saving smarter, and build stronger financial foundations. It’s a win for employees, a win for employers, and a win for brokers who want to deliver measurable results.

Join our upcoming webinar: Driving Supplemental Utilization with Survey-less, Silo-less Guidance. Or simply click here to schedule a 30 minute chat.

‍