Beyond health care: Helping employees maximize their HSAs for long-term savings

(Photo: Shutterstock)

With assets climbing to over $98 billion as of mid-year 2022, Health Savings Accounts (HSAs) have cemented their place as an important tool to help employees meet their health care spending needs. Their unique tax advantages and flexible withdrawal options also make them an integral retirement savings vehicle – one that, when used properly, can add a significant boost to an employee’s retirement readiness.

But understanding of the account’s value, especially beyond immediate medical savings, remains a barrier to utilization. A recent survey by the Plan Sponsor Council of America showed that nearly 80% of plan sponsors need help educating employees about HSAs and their multifaceted benefits.