The important connection between HSAs and a successful retirement
Health savings accounts are popular health benefit plans, but did you know they can also play a critical role in retirement savings?
Helping participants 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 plan sponsors about health care costs in retirement and the potential uses of HSAs.
What is an HSA?
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.Three reasons to talk with your clients about the retirement benefits of HSAs
Health care is participants’ single biggest retirement expenditure
Retirement health care costs are one of the most significant sources of concern. For good reason: A healthy couple could pay upwards of $404,000 in medical costs during retirement.1
Health savings accounts can be an integral part of a retirement plan
In fact, 75.3 percent of plan sponsors 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.
Few people use health savings accounts as a retirement savings tool
The majority of participants use health savings accounts to pay for current out-of-pocket medical expenses.3 Only 9% of participants use the account to invest for their long-term health care needs.3 There’s a need for more education and awareness of the value HSAs provide as part of a holistic retirement plan.
Need some help with your conversations? Use these resources.
For you
Use with plan sponsors
Use with participants
The connection between HSAs and retirement saving
An aging workforce and your bottom line
Saving for health and retirement readiness
Is your aging workforce impacting your bottom line?
Retirement wellness planner
HSA eligibility calculator
HSA max contribution calculator
