Press Release: HSA Bank Survey Finds That Consumers Remain Unprepared for Healthcare Expenses in Retirement
Milwaukee, November 28, 2018 — HSA Bank, a division of Webster Bank, N.A., released a report today that addresses how consumers are saving for healthcare expenses in retirement. According to the report, consumers underestimate how much money they will need for healthcare expenses in retirement. In fact, two-thirds (67 percent) of consumers believe they will need less than $100,000. In addition to not being prepared financially to pay for healthcare expenses in retirement, consumers also remain unclear about the benefits of health savings accounts for their future retirement plan.
Although there are many benefits of an HSA, there is still low utilization of this option. HSA Bank’s survey revealed that only 29 percent of consumers plan on using an HSA to pay for healthcare expenses in retirement and the reason for such low use is that 42 percent of consumers don’t know they can invest HSA funds.
“Today’s consumer still requires guidance when it comes to their approach to their health and financial wellness,” said Chad Wilkins, president of HSA Bank. “Many consumers don’t understand the benefits of an HSA and how this triple tax-advantaged account can help prepare them for the significant expenses they will incur during their retirement years.”
While some consumers simply don’t have an HSA, many consumers aren’t using them to save for healthcare expenses in retirement because they just don’t understand how they work. This offers an opportunity for financial advisors and employers to further educate consumers on the primary benefits of an HSA, including: tax benefits, investment opportunity, qualifying expenses and fund rollover.
To learn more about how consumers are preparing for retirement, download the report.
About HSA Bank
At HSA Bank, we’re working toward a world where everyone is empowered to save for a healthy future. By providing the right tools and resources, we make it simple for our 3 million members nationwide to maximize their savings for healthcare and long-term goals. As a leader in health accounts for over two decades, we continue to innovate. Our offerings in the healthcare savings space drive down healthcare costs, increase access, and assist with decision-making for consumers, health plans, partners, and advisors. As of September 30, 2020, HSA Bank had $9.4 billion in total footings comprising $7.0 billion in deposit balances and $2.4 billion in assets under administration through linked investment accounts.