Question: We are planning to promote health savings accounts to our employees as a means of funding future healthcare expenses in retirement. Is there any data around use of these accounts as along-term savings vehicle?
Answer: Given the triple tax-free status of health savings accounts, it’s a great idea to promote their potential for growth over the long term to help pay for healthcare expenses in retirement — including Medicare premiums. According to Bank of America’s Q3 2024 Participant Pulse, just 14% of health savings account holders invest for growth. To help you with targeting your campaign, 19% of men invest for growth (versus 13% of women).
In addition, Baby Boomers (17%) invest in health savings accounts for growth more than any other generation.
