Health savings are surging as life spans and medical expenses increase. With Americans living longer, saving for long-term health-care costs has become a higher priority, especially for those close to retirement. According to the Employee Benefit Research Institute, the average American couple needs more than $264,000 total to cover health-care expenses in retirement, as of October 2015.
HSAs, which have become more common, given the introduction of high-deductible health plans, are increasingly being utilized as a supplementary savings tool, specifically earmarked for these late-in-life medical expenses. Notably, current industry data show the HSA industry will reach $50 billion in assets by 2018, up from $30.2 billion in 2015.
As financial demands change, so too do savers' habits. The data clearly show that every generation is prioritizing their savings for major life goals, such as retirement, college and health care.
Savers are recognizing the value proposition of dedicated savings vehicles to reach their long-term financial goals and understand that every dollar saved can make a difference in their financial future.
— By Bob Guillocheau, president and CEO of Ascensus, an independent retirement and college savings services provider