December 13, 2013
WE ALL KNOW WHERE WE'RE HEADED:
Retirees Should Consider Health Savings Accounts (Robert Schmansky, 12/12/13, US News)
Posted by Orrin Judd at December 13, 2013 3:21 PMAccording to a 2013 study of employee retirement savings, health care concerns are driving many to cut retirement contributions and seek ways to save more for future health care costs. Mercer's workplace study finds preretirees may cut back on retirement contributions by 10 percent in 2014 and due to a lack of trust in future health care benefits, these same workers may be putting those savings into health savings accounts, combined with high-deductible health plans or plans which have a deductible minimum of $1,250 for individuals and $2,500 for families.The study shows more employers are offering the high-deductible health plans and more employees are taking them up on those plans, which allow employees to establish health savings accounts that either they or their employer may put money into to pay for future health care costs. With the ongoing changes to health care, some pundits have speculated that trend is likely to continue to show strong growth in health savings accounts.While employees may be making these moves due to concerns about future health care costs, they may actually be contributing to a better overall retirement savings plan than they realize. Health savings accounts provide a vehicle to save for health care and have some significant retirement savings benefits over a traditional plan to only save to a 401(k), 403(b) or other employer-based plans.