As workers across the country make their employee benefits selections during open enrollment over the next month or two, financial advisors say there’s an opportunity to educate young, healthy clients about the advantages high-deductible health plans. In addition to improved cash flow because of lower premiums, such plans also give participants access to Health Savings Accounts (HSAs)—one of the most underused retirement vehicles, especially for young investors.
Matt Peterson, 30, a financial advisor with Prime Capital Financial in Overland Park, Kan., expects HSAs to become more popular as awareness of their benefits increases and more people take advantage of high-deductible healthcare plans. In 2024, 38.8 million people were enrolled in HSA-eligible plans, a 21% increase compared with 2019, according to the health insurance trade group America’s Health Insurance Plans.
“I believe we’ll see the people who have entered the workforce over the last five or so years poised to capitalize on HSAs because the knowledge around them has improved tremendously,” Peterson says. “You see more people utilizing them, and more people understanding that they can invest dollars within their HSA.”
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