A health savings account (HSA) is a tax-advantaged trust or custodial account created for the benefit of a qualified individual. HSAs can be an integral part of retirement planning since the funds can be invested long-term.
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.
Use with employers
For employers, HSAs make efficient use of your entire benefits package by covering both health and retirement.
Use with employees
Track your HSA alongside your other retirement accounts for a better picture of your overall financial health.
Calculate how much you may be able to contribute this year to an HSA.
Answer a few quick questions to see if you meet the requirements for having an HSA.
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 (pay as much as $662,156) in lifetime Medicare and supplemental insurance premiums and out-of-pocket costs.1
In fact, HSAs are triple tax-advantaged and can help reduce employers' current health care costs. Yet, fewer than 40 percent of employers position the HSA as a retirement savings vehicle, though another 11% plan to do so.2
The majority of workers use their health savings account funds for current health care needs, large and small.3 Only 11% of people 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.
Use with employees
Track your HSA alongside your other retirement accounts for a better picture of your overall financial health.
Calculate how much you may be able to contribute this year to an HSA.
Answer a few quick questions to see if you meet the requirements for having an HSA.