As household health care expenses increase, they take money away from other household expenses, making it harder to take advantage of the tax benefits of HSAs.  (Photo: Shutterstock)

In 2018, the overwhelming target of spending from health savings accounts was for everyday health care needs, with 93 percent of the money going to pay for those rather than being used for major “surprise” expenses such as emergencies and hospital visits. And that leaves the potential for HSAs to aid in retirement planning completely out in the cold.

According to Lively, Inc.'s first annual HSA Spend Report, that 93 percent broke down as follows:

• Doctor visits and services (41 percent)
• Prescription drug costs (25 percent)
• Dental care (9 percent)
• Vision and eyewear (5 percent)
• Chiropractor (5 percent)
• Lab work (4 percent)
• Other (4 percent)

Emergencies and hospitalizations were left with the remaining 7 percent, while dedicating any funds to long-term savings against health care expenses in retirement was apparently beyond people—despite the fact that retirement health care costs are expected to hit $280,000 per couple, over and above Medicare coverage.

Related: 10 HSA questions employers & employees ask