HSA: For Retirement or Emergencies
Most employees will sign up for a health savings account (HSA) and their High Deductible Health Plan (HDHP) to begin contributing to cover their health care expenses.
If they are able, the benefits of maximizing their HSA are immeasurable. In the first place, they get all the tax benefits–federal, state, and payroll. They are also saving money for two different reasons–retirement or an emergency fund.?
Investing for Retirement or An Emergency Fund
When your employees begin contributing, if they don’t have a lot of healthcare-related expenses in a given year, the money can stay there for when it’s needed. For example, saving up for a planned medical expense or an unplanned day in the future when you will need to dip into your HSA funds.??
You can also empower your employees with the knowledge that taking some of the money and investing it for retirement will help them grow their accounts faster and build their savings for the future. According to the HSA board, you need to save $304 per month for 20 years, and if you earn an 8% annual return, you’ll have $180,000 to pay for retirement medical expenses.?
With the rising healthcare costs in retirement, that amount of money will come in handy. It all comes down to planning and preparation.??
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Investing Made Easy
It’s easier for your employees to invest with SavingsOak HSA. We remove the barriers to investing with no minimum cash balance to get started. We also offer a first of its kind HSA rewards program that engages your employees through their journey. Employees receive shares of stock (1) when they enroll in the HSA, (2) when they begin making pre-tax contributions, (3) when they begin investing.?
SavingsOak is there with you every step of the way to help you encourage your employees on the road to financial wellness and retirement.?
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