Health Savings Accounts Continue Their Rapid Growth

Fidelity Investments press release ------ Fidelity estimates that couples retiring today will need an estimated $260,000 for health care costs during retirement, so it’s no wonder employers and their employees are looking for ways to help tackle these daunting expenses. It is critical to factor health care costs as you plan for retirement income – through steady tax-advantaged savings including a portion that’s invested in the stock market. Health savings accounts (HSA) enable people to put aside money both for today’s health care expenses while investing for medical costs they may incur in retirement (how HSAs work). HSAs are paired with high-deductible health plans (HDHP), which often have lower monthly insurance premiums than traditional health plan offerings, plus include three key tax benefits: contributions go in tax-free, balances grow tax-free, and savings can be withdrawn tax-free for medical costs. These unique savings opportunities help explain why assets in Fidelity HSAs® rose 50 percent during the past year to surpass $2 billion. Fidelity now has 657,000 individual account holders, a growth of 46 percent in just one year. To get more in depth information on Health Savings Accounts continuing rapid growth click on the picture below to read the release.