What workers can do before their benefits are cut

— -- Given all the employee benefits changes, it's vital for all workers — even those with jobs and still-intact perks — to prepare for company cutbacks by stashing away more money, says Brad Kimler, an executive vice president in Fidelity's Benefits Consulting group. "Have a long-term plan."

While it's tough to save enough to pay bills, much less bulk up saving for health care costs or retirement, The Cure for Money Madness author Spencer Sherman, says creativity helps.

"Necessity is the mother of invention," he says. "Maybe you can do more potluck dinners and less eating out, working out with a friend instead of joining an expensive health club, swapping vs. buying clothing, renting out a room in your home."

Among his advice on what not to do: Don't take "huge risks" to recover any losses. "In general, investing in a diversified portfolio with steadier returns has a much higher probability of making more money than concentrating your portfolio in one or two stocks or asset categories."

OTHER TIPS ON COMBATING THE BENEFITS BLUES

If retirement benefits are slashed

One in eight companies have cut their 401(k)/403(b) matches — and another 12% say they'll do that in the next 12 months, according to a February Watson Wyatt survey.

When a match is suspended, employees shouldn't stop adding their own money to a retirement fund, Sherman says. But they should take the extra step of examining options outside the 401(k) — such as a Roth or regular IRA instead — to see if they provide better investment choices.

Retirement expert Alicia Munnell offers up advice that she knows is hard to follow: "In theory, you should actually increase (contributions)" to a retirement account to make up for the lost match, she says.

If employee health care contributions rise

About one-fourth of the employers surveyed by Watson said they'll increase employee contributions to health care premiums during the next year. Another 22% had already made such a change.