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You’re a month away from your milestone 65th birthday, and life is good. You remain at work and plan to do so for several more years, whether because you love what you do or you fear your retirement savings won’t cover the lifestyle that you want to live.
Let’s create a scenario: Your family of four has just won a seven-day vacation to a popular theme park. The prize was advertised as paying for your air transportation, housing, and two meals a day, as well as a $1,500 cash for admission tickets, daily lunch, and souvenirs.
HSA investors have long been a key element of the HSA industry. According to Devenir Research, the average HSA investor held roughly $10,948 in investments at the end of 2018. In addition, these investors held $3,580 in cash, more than double the funded deposit balance of non-investors.
Representatives Ami Bera (D-CA) and Jason Smith (R-MO) have introduced bi-partisan legislation (HR 3796 “The Health Savings for Seniors Act”) to allow retired seniors on Medicare to have a health savings account or HSA. Medicare beneficiaries would be able to fund the account and use it to pay for healthcare expenses in retirement.
The amount of money individuals may need to cover their health care expenses once they retire may be eye-opening for many of them. EBRI recently found that couples with long life expectancy and high prescription drug expenses could need as much as $363,000 to cover premiums and out-of-pocket expenses.
Dr. Bill West, SVP of Business Development for HealthEquity and a member of the Board of Directors of the HSA Council, visited with J. Kevin A. McKechnie l to discuss the role of HSAs in health care reform and in retirement in Studio 1120.