Say what you will about millennials - there's certainly been plenty coverage of the many industries that this generation is actively "killing" (sorry napkins!). But, along with Gen-Z, there is no generation better positioned to take advantage of the long-term retirement potential of an HSA.
So for this week's edition of HSA Headlines, we'll take a closer look at two stories that examine millennials' prospects for long-term HSA success and a surprising new study that shows America's booming economy is changing how working professionals are seeing their future retirement prospects.
Americans most upbeat on retirement in almost 20 years: chart - Alex Tanzi, Vince Golle, BenefitsPro
A strong economy can change your outlook on a lot of things. And if you think back to the crazy days of 2008-09, there were few Americans who were overly enthused about their retirement prospects. But thanks to a booming economy, Americans are becoming more hopeful about their retirement prospects, something we haven't seen since the early 2000s.
According to a University of Michigan index surveying thousands of Americans measuring whether they see a comfortable retirement, respondents have reported their most positive outlook for a comfortable retirement than we've seen since December 2000. That certainly bodes well for the market as a whole, and with more retirement savings options than ever to choose from, Americans can put that optimism toward smart financial planning.
As American attitudes around retirement improve, millennials and Gen-Z members entering the workforce are better positioned to take advantage of HSAs than any that have come before them. After all, HSAs were created in 2003 and have had a slow growth process to become one of the most prominent consumer-directed healthcare accounts in America today.
These younger generations will be one to watch as they have the chance to truly take full advantage of an HSA over the course of their careers.
HSAs are becoming increasingly popular with younger working professionals thanks to lower premiums with an HSA-compatible health plan, and their potential for long-term retirement savings. Money rolls over from year to year, and the triple tax benefit (no tax on HSA contributions, withdrawals for qualified health expenses and interest earned) means that this is one of the fastest ways to build retirement savings while being able to cover expected medical expenses.
Wondering how much can you really save? Use our HSA Calculator to find out!
HSA Headlines is a weekly roundup of the latest, most relevant news and conversations about your health savings. It appears every Friday, exclusively on the HSA Learning Center. And for more about your physical and financial well-being, be sure to follow us on Facebook and Twitter.