Empower Retirement has launched an “integrated health and wealth experience” aimed at simplifying and clarifying individuals’ savings priorities across their retirement account and health savings account (HSA).
According to the firm, the “improved and streamlined Empower experience” makes it easier for employees to see how their health savings account assets can prepare them for retirement.
Beyond the updated interface, Empower has deployed a new approach that expands its interactive technology to “allow plan sponsors and participants to see in a glance what their projected health care costs may be in retirement and how it compares with the projected balances in their HSA.” Empower says the new approach leverages technology that makes it easier for participants to adjust their deferral “with a simple click and send those changes straight to payroll departments.” The approach also integrates data on prior year contributions and important annual estimates.
According to the firm, the new interactive technology allows employees to think about retirement in categories and visualize which part of their savings will be allocated to which expense category. The system builds on Empower’s health savings account platform, Empower HSA, which launched a year ago March. The Empower HSA provides plan participants with access to an online solution that integrates retirement and health care savings, helping participants identify the gaps in their retirement plan and develop a strategy to take action.
This new Empower Retirement savings optimization model is laid out in a white paper, “The New Rx for Retirement,” which can be download from the Empower Institute website.