The IRS has issued guidance allowing high-deductible health plans (HDHPs) with health savings accounts (HSAs) to cover specified medications and services used to treat chronic diseases prior to meeting the plan deductible.
It helps users quantify the value of their high deductible health care plan, both in the present and the future, and select investments.
However, those who have a health savings account are more certain about how they will cover future health care costs.
Seventy-six percent of those who are financially independent think retiring earlier will help them live longer, yet top concerns about retiring early are outliving their money and health care costs, according to a survey by TD Ameritrade.
More than 60% of employers want to keep retirees in their plan, and 33% prefer that terminated employees keep their balances in the plan, Alight Solutions found.
Among those that do offer financial literacy programs, 51% say workers increase their contributions to supplemental savings plans, 43% say workers become more engaged with compensation issues, and 41% say they see cost savings for the jurisdiction that at least partially offset the expense of offering the program.
They also have many characteristics equated with greater financial stability than those not in a HDHP.
They are centered around three key themes: 1) Secure your foundation, 2) Achieve greater prosperity and 3) Inspire confidence.
Workers younger than 35 are realizing they need to start saving now, according to Ascensus; however, only 30% are on track to meet their retirement savings goals.
Preparing participants financially to be able to retire beat out reducing plan costs as plan sponsors' top concern in this year's Fidelity Investments Plan Sponsor Attitudes Study.
For those learning about HSAs for the first time, one of the keys is to understand there is one set of rules for money going into the accounts, and another set of rules for money moving out.
Many people are unaware of their triple tax advantages, that balances can be carried forward and that the money can be invested.
The most challenging part respondents to a WEX Health survey cited in using their HSA was making sure to have enough funds set aside to cover deductibles (29%) and figuring out how much money to put in the account overall (21%).
Employers are introducing more convenient and high-quality health care options.
Fifty-one percent are not actively contributing to a 401(k) plan, Edward Jones found in a survey.
Of all factors, salary was found more likely to encourage savings both an HSA and 401(k).
The majority of Gen Xers surveyed by T. Rowe Price reported they receive advice through their employer.
The firm's analysis found participants who also had HSA savings were more retirement ready than those who did not.