So you’ve moved out, gotten your own place and started a new job.
You’re well on your way to becoming a living and breathing adult out in the big bad “real world.” But do you know what all of those job benefits that came with your new career actually mean? Pink & Black has got you covered with our simple guide to understanding all of those fancy little perks.
401(k)
If you’re just starting out, retirement may seem like a faraway ideal that may or may not actually happen one day. Luckily for you, a 401(k) helps you save for retirement without much effort. 401(k) plans work by investing part of your paycheck, so that you simultaneously save money and make it worth more as you work. Even better, a lot of companies will match the percentage of your paycheck that goes into your 401(k), making it worth even more in the long run! The only catch is you have to wait a certain amount of time before withdrawing your money. Otherwise, you could face hefty penalty fines.
Health & Life Insurance
This is the most common employment benefit. Depending on the company, you could be completely covered for insurance, or you may have to pay a premium to receive it. The premium is a lot less than what you would pay without benefits, so it’s normally a safe bet. Life insurance sets aside an amount of money (generally one year’s wages) to be given to a beneficiary that you name should something happen to you. It’s scary to think about, but it can help loved ones pay for burial and other expenses if you die.
Paid Vacation & Sick Leave
In jobs where paid vacation and sick leave are an option, you are generally given a certain amount of days per month to use. If you don’t use them, then they can build up as you work. Be sure to double check your company’s policies, as they differ from place to place. If you decide to leave your job, often they will pay you back for paid vacation or sick days that you accrued but did not use.
(Feature Photo via All You)