HSAs offer a triple tax advantaged savings
This is a key way in which a health savings account (HSA) is superior to a traditional 401(k) or IRA as a retirement savings vehicle. Once an employee begins to withdraw funds from a 401(k) or an IRA plan, they pay income tax on that money, regardless of how the funds are being used.
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Research suggests that a 55-year-old couple retiring in 10 years will need $537K in savings for health care alone.1
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Health care costs are expected to grow 5.5% annually, and may be your largest expense in retirement.2
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53% of pre-retirees expressed anxiety about their upcoming retirement.3
Incorporate an HSA into your financial goals
It takes multiple accounts, including health accounts, to plan for and live in retirement. Typically, account holders can start investing once they reach an HSA balance of $2,000. All interest and investment growth from deposits are income tax-free.
Digitally managed investments
We offer online financial advice driven by artificial intelligence and algorithms that provide automated investment opportunities. Based on your goals, we make it easy to invest your funds now and in retirement.
Mutual funds
Optum Financial offers a diverse set of 31 mutual funds, including:
- 17 Vanguard funds
- Five target date funds
- Three lifestyle funds
Mutual funds average a four-star Morningstar rating, and represent some of the lowest expense ratios in the industry.
Self-directed
This option is ideal for experienced investors who want more control and options or those investors who seek to align their 401(K) investments with their HSA investments. Employers must opt-in for this option.
Does your retirement portfolio include an HSA?
HSA guide to retirement
Sources
- HealthView Services. 2018 Retirement Health Care Costs Data Report.
- Centers for Medicare and Medicaid Services (CMS.gov), May 2019.
- Associated Press: NORC, Retirement Planning In America: Anxiety, Inequality, and the Role of Social Security.
Investments are not FDIC insured, are not bank issued or guaranteed by Optum Financial or its subsidiaries, including Optum Bank, and are subject to risk including fluctuations in value and the possible loss of the principal amount invested.
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