Most organizations do not consider all the obstacles employees face post-retirement. Many workers now than in previous generations, will not receive employer-sponsored health plans to cover them through times of rising medicals costs. In fact, employee retirement readiness is at an all-time low, and only 37% of employers take steps to measure their retirement readiness. With the focus primarily on a day to day expense for post-retirement, around 66% of working millennials will have no retirement savings to speak of.
Preparing for Healthcare Expenses
The current methods for future savings such as 401ks, IRAs, and taxable investment accounts, do offer the minimum spending need for retirement. Nevertheless, there is still no specific approach to tackle future medical expenses, that is, except for one. A Health Savings Account (HSA) paired with high deductible health plans can be an appealing option for your business’s retirement plans and employees.
The Advantages of an HSA:
- You will have the ability to use the premiums saved from a qualified-deductible health plan to help fund your employee’s HSA’s
- Each year, you and your employees will have the option of making contributions through pre-tax deductibles
- Interests of HSA’s because the funds are used to cover health expenses (even after retirement).
- Funds may be put into an investment account that employees may use to contribute to their retirement
Having HSA’s available for your employees provides them with a learning experience that will help them be ready for the future and help them improve their overall retirement readiness. The overarching goal is to ensure that your employees can plan intelligently so they may enjoy the same standards of living after they retire. Be sure to utilize information provided by the Internal Revenue Service (IRS) to help with questions concerning official tax forms or other tax-related questions.
One of the best ways you can help your employers is to try in educating them on all the opportunities they can receive. The idea is to create an organized workplace where transitions can be made with ease and employers are always comfortable.