And, only 29% plan to use a health savings account (HSA) to cover medical costs in retirement, HSA Bank found.
In partnership with HealthEquity, Vanguard will offer plan sponsors the ability to provide an HSA solution to their employees that features low-cost Vanguard funds or the same investment options as their DC plan line-up.
Investment menu designs have also gotten better, according to a Morningstar analysis.
They also fail to invest the funds or max out contributions, EBRI found.
“We are committed to bringing America’s workers solutions designed to help them gain confidence and take action to efficiently prepare for health care expenses in retirement,” says John Carter, president of Nationwide’s retirement plan business.
Most HSAs do not even have an investment component, but this will change, as health care brokers have been driving plan sponsor adoption of HSAs, but in the future advisers will, Jamie Greenleaf, with Cafaro Greenleaf, told attendees of PLANSPONSOR’s 2018 HSA Conference.
Speakers at PLANSPONSOR's 2018 HSA Conference discussed educating participants about investing health savings account (HSA) assets and planning for retirement health care costs.
Willis Towers Watson suggests portals integrated with financial planning tools can help employees make strategic decisions about where to best save their money based on their unique financial situation.
Speaking at PLANSPONSOR's 2018 HSA Conference, Shad Fagerland, of counsel at Ivins, Phillips & Barker, discussed two bills, passed by the House, that would expand the use and benefits of health savings accounts (HSAs).
The report can serve as a primer for those needing more education about HSA rules and benefits.
Devenir estimates that $9.8 billion of HSA assets are invested as of June 30, 2018—an estimated 45% year-over-year increase.
According to a new survey, 76% of employees say they understand the salient features of health savings accounts, or “HSAs,” yet only 12% could correctly identify the common attributes of an HSA in a simple quiz.
Research from EBRI shows very few employees contribute the maximum statutory limit to HSAs.
It would also be good for them to include emerging markets equities, target-date funds, alternatives, international bonds and specialty bonds.
Vanguard has issued a new framework, jointly developed with Mercer, that helps pre-retirees and retirees with planning for annual health care costs and long-term care expenses in retirement.
Sources at the 2018 PLANSPONSOR National Conference discussed financial wellness, choosing between Roth and pre-tax savings and saving for long-term health care expenses.
Although an SEC bulletin is directed at employees invested in HSAs, its description of useful HSA features depending on how investors use HSAs can be informative to plan sponsor clients.