Health Savings Account Blog

The results of these recent studies indicate that individuals will need to make some real choices about their retirement and spending. Currently, the typical retirement age is 65 years old. However, if an individual can't afford to pay for health care, then the individual may have to either put off retirement or be unable to pay for their health care. Either way, we're finding that our customers are growing increasingly concerned about their ability to obtain and pay for health care expenses, especially as they approach retirement.

To save for these inevitable expenses during retirement, many people are setting up Health Savings Accounts. A Health Savings Account allows you to put aside pre-tax dollars to cover future medical expenses. The money grows tax-deferred like an IRA, but is never taxed if used to pay medical bills.

Health Savings Accounts can be established by anyone who has a qualifying high-deductible health plan. These plans are designed to help make healthcare affordable through a combination of the low premiums that come with a high-deductible health insurance plan, and the tax savings from putting money aside in the HSA. That money can then be used to pay future medical expenses, tax-free.

We specialize in helping our clients find the perfect long-term arrangement for their health care needs. "HSA plans are often the most affordable and effective health care plan solutions for many of our customers, but a full needs analysis of each individual's situation is always necessary to ensure that our customers get the best possible plan."

Many people are funding their Health Savings Accounts with the hope that they will stay healthy, and not need to withdraw the money. Because the money grows tax-deferred, you can think of it as an additional retirement account. If money is later needed to pay a medical expense during retirement, that money can be withdrawn from the HSA tax-free.

Learn what a Health Savings Account can do for you at HSA for America.