Helping employees plan for retirement health care costs is critical to their long-term financial well-being. Fortunately, there’s a savings vehicle that can help solve for both current and future health care needs: the health savings account (HSA).
Use the insights and resources below to deepen your conversations with employers about health care costs in retirement and the potential uses of HSAs.
Retirement health care costs are one of the most significant sources of concern. For good reason: The average healthy 65-year old couple retiring this year can expect to pay $363,946 ($537,334 future value) in lifetime Medicare and supplemental insurance premiums and out-of-pocket costs.1
In fact, 75% of employers view HSAs as part of their retirement benefits strategy.2 Plus, HSAs are triple tax-advantaged and can help reduce employers’ current health care costs.
The majority of employees use their health savings account funds for current health care needs, large and small.3 Only 8% of employees focus on saving their HSA funds for future health care expenses.3 There’s a need for more education and awareness of the value HSAs provide as part of a holistic retirement plan.