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.

Use our Retirement Wellness Planner to connect your HSA with your other retirement accounts

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

What's all the buzz about levelizing retirement plan fees?
Discover the role HSAs can play in long-term health care saving and retirement wellness.
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An aging workforce and your bottom line

Learn how designing a plan around retirement readiness can help lower health care costs and improve retirement wellness.
Download the presentation

Saving for health and retirement readiness

You've got options comparison flier
For plan sponsors, HSAs make efficient use of your entire benefits package by covering both health and retirement. Find out how.
Download the presentation

Is your aging workforce impacting your bottom line?

You've got options comparison flier
Many would-be retirees can’t retire on time due to lack of retirement savings – including saving enough to cover health care costs. See how the two are related, and what you can do about it.
Download the position paper

Retirement wellness planner

Plans sponsor event presentation
Track your HSA alongside your other retirement accounts for a better picture of your overall financial health.
View the tool

HSA eligibility calculator

Answer a few quick questions to see if you meet the requirements for having an HSA.
Visit the calculator
1 HealthView Services, 2017 Retirement Health Care Costs Data Report
2 2017 Plan Sponsor Council of America survey
3 Devenir 2016 Year-End HSA Research Report

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The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.
 
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