It's the final month of 2018, and as open enrollment periods come to a close, this is usually the time of year when the consumer healthcare and employee benefits industry takes a look back at the trends from the past year and what could be coming down the pipe in the near future.
As more insurers and providers enter the HSA space, the employee benefits industry is poised for major growth in 2019. This week, we'll take a look at a demographic that could benefit greatly from HSA expansion, and a surprising new study about employee benefit preferences that may come as news to HR departments nationwide.
Gen X Women: The Time Is Now To Embrace Health Savings Accounts - Megan Gorman, Forbes
If you're a member of Gen-X, as you hit your 40s and early 50s, this is a prime opportunity to up your retirement savings game. But according to a new survey by Stash, women in their mid-30s and early 40s stall their retirement savings efforts by 15%. In comparison, men are saving at their highest rates in their mid-30s and early 40s.
So if you're a Gen-X lady who falls into this group that may have fallen behind in retirement savings during your 30s, an HSA may be the best option for you to get your savings trending in the right direction. In addition to their triple tax benefit (no tax on HSA contributions, interest earned, or withdrawals for qualified medical expenses), you can also make catch-up contributions. From age 55 onward, you can also contribute an additional $1,000 above the yearly contribution limit (3,500 individual limit for 2019).
And once you reach Medicare age at 65, you can withdraw those funds without penalty for any expense (they are just taxed as income). That sounds like a smart way to prepare for retirement and your future medical spending!
More pay? Nah. Employees prefer benefits - Sean McCabe, Employee Benefit Adviser
Everyone wants a raise, but would you take one at the cost of losing your employee benefits? According to a the 2018 Employee Benefits Report from the American Institute of CPAs, the answer to that question is a resounding no.
In a poll of 2,026 adults, 80% of those surveyed would choose a job with benefits over the same job with 30% more pay and no benefits. This is instructive news for companies large and small, as this study illuminates just how important benefits are for working professionals' lives. Unless you have a benefits package to compete for top talent, chances are great workers will go elsewhere!
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.