Participants in 401(k) plans and health savings accounts (HSAs) had higher 401(k) account balances than those who saved only in a 401(k), according to a new report by Fidelity Investments. The company’s research also found that those who continuously contributed to their HSA saved most of their contributions, which will help them pay for escalating health care costs in retirement.

On average, 401(k) participants who also contributed to an HSA in 2011 deferred 8.5 percent of their annual salary into their retirement plan, while participants who only saved in their 401(k) contributed an average of 8.1 percent.

“During benefit enrollment season, it’s encouraging to see that on average, saving in an HSA is not done at the expense of an employee’s crucial 401(k) retirement savings,” said William Applegate, vice president, Fidelity Investments. “Employers and employees alike are increasingly recognizing the importance of planning for current and future health care costs and many are beginning to integrate this tax-advantaged product into their overall retirement strategy.”

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