Millennials may be the largest demographic in today's workforce and the subject of many a think piece, but the benefits world needs to stand up and take notice of the next trailblazing generation, Generation Z.
While many are still fresh out of undergraduate programs and wading into the job market, their early spending habits show a generation that is ready to take full advantage of the benefits offered to them. This week, let's take a closer look at the generation born from 1996-2010 and what their retirement prospects could look like.
Gen Z Americans already saving to buy homes before they turn 30 - Lananh Nguyen, BenefitsPro
I may be a millennial, but this is great news for the younger generation. A recent survey by Bank of America Corp. revealed where the savings priorities are for Gen Z, and it turns out that they are practicing responsible savings from a very young age. An impressive 59% of 18-23 year olds surveyed hope to buy a house in the next five years, and more than half have already started saving for one.
To show that millennial priorities are still slightly out of whack, only 40% of millennials surveyed are actively planning on buying a home in the next five years. If Gen Z is already making the right decisions for their long-term future, they could make up the next wave of HSA enrollees in the future who are actively planning for retirement and the health care expenses that comes with it!
Healthcare: The barrier to retirement employers are helping to tear down - Kayla Webster, Employee Benefit News
Gen Z's surging interest in saving for the future bodes well for them in this current health care moment, where a couple retiring at age 65 should expect to spend up to $285,000 on healthcare expenses alone in retirement. As a result, employers are diversifying their retirement options to extend a helping hand to employees, and HSAs are emerging as a key strategy to provide assistance.
According to Fidelity Investments, employers are trying to get ahead of the ever-growing price of health care by offering HSAs to their employees as a way to defray costs. In 2017 alone, Fidelity reported that 112 new employers began offering health savings accounts to employees and that the company saw a 50% increase in the number of new HSA account openings from 2017.
With the ability to save for retirement, cover immediate health expenses AND over-the-counter medical products, HSAs are a no-brainer for employees looking to jump start their health and long-term earnings potential.
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