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Retirement Revving Up HSAs

What’s driving the increases in health savings account adoption?

According to the ConnectYourCare Consumer-Driven Health Plan Enrollment & Usage Trends Survey, more than 40% of the HSA participants interviewed said they enrolled in their HSAs in order to use the accounts as savings vehicles for future health care needs. That topped “tax savings,” which 21% selected, and “lower premiums” offered by high-deductible health plans, named by 9.5% of survey respondents.

The survey asked more than 14,000 workers what their primary concern is when it comes to retirement. Nearly two-thirds (63%) selected health care expenses (such as insurance premiums, prescription costs, and other medical expenses) over lifestyle expenses (paying for housing, vehicles, vacations, etc.).

When deciding how much to contribute to an HSA and/or flexible savings account, 58% of those surveyed said that reviewing previous spending habits is the most useful activity. Just over one in five (22%) preferred reviewing potential savings and spending scenarios, while 8.5% relied on savings calculators, 4.7% sought out advice from friends, family members or financial advisors, and 6.1% chose “other.”

Nearly 40% of employee participants surveyed indicated previous experience with a tax-advantaged account is the most valuable “tool” when deciding if they’ll enroll in such an account going forward. Enrollment communications and savings calculators are likewise important to the decision-making process, as 22% and 17% of respondents, respectively, indicated these were the most valuable tools. Just under one in eight (11.7%) cited advice from friends, family members or financial advisors.

As the for top reasons workers don’t enroll in HSAs, a separate survey of nearly 250 employers cited these factors:


  • unaware of financial tax benefits (47.4%)

  • previous experience (26.3%)

  • cost (5.3%)

  • unaware of offer (5.3%)

  • other (15.8%)


ConnectYourCare’s Consumer-Driven Health Plan Enrollment & Usage Trends Survey was conducted from October 2016 through January 2017 using a third-party survey platform.

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