PLANSPONSOR - December 2021 - January 2022 - 14

UPFRONT
Employers
Should Stress
The 'Savings,'
In HSA
Education
THE MAJORITY of health savings
account (HSA) holders use their account
to focus on yearly and expected tax-advantaged
health care spending, according
to Lively's second annual " HSA Account
Holder Insights " report.
And these account holders spend the
money in their HSA nearly as fast as they
contribute to it. Lively found they take
about $1,700 in distributions annually,
leaving them an average account balance
of just over $1,000 in assets.
The 2021 study examined 50,000
randomly selected HSAs and found that the
most investment-savvy HSA holders focus
on maximizing their account for retirement.
At an average age of 59, these people
had a balance of more than $36,000, with
96% of those assets invested. This average
account balance grew 11%, from $33,000 in
2020, due to strong performance in investment
markets.
While most consumers Alegeus
polled in its 2021 Pre-Open Enrollment
Survey are actively saving for retirement
(53%), and many consider themselves savvy
investors (45%), a majority do not see HSAs
as useful for saving or investing. Only 32%
said they understand that an HSA can help
with long-term expenses, and only 17%
invest HSA funds for growth.
Alegeus says this presents areas
where benefit administrators and
employers can focus their educational
efforts. " I see a major opportunity here
to put the 'savings' back in health savings
account, " says Leif O'Leary, Alegeus CEO.
" We're happy to see that consumers understand
the value of long-term savings and
investing. That's a critical first step. But
now it's up to us as health benefit experts
to provide the education and resources
to help consumers take advantage of
their HSA in pursuit of their saving and
investing goals. "
More than half (56%) of survey respondents
reported contemplating health care
costs specifically in their retirement planning.
However, 83% of those surveyed who
have an HSA do not invest their funds for
growth. Alegeus says this could be due
not only to a lack of available funds-most
HSAs set a minimum threshold of $1,000
to invest-but also to a lack of knowledge
14 PLANSPONSOR.COM December 2021 - January 2022
Art by Wenting Li
http://www.PLANSPONSOR.COM

PLANSPONSOR - December 2021 - January 2022

Table of Contents for the Digital Edition of PLANSPONSOR - December 2021 - January 2022

INSIGHTS
RULES & REGULATIONS
UPFRONT
ESG Interest Piqued
2021 Best in Class DC Providers
Ramping Up Offerings
Annuities Still Misunderstood
Student Loan Repayment
FIDUCIARY FORUM
INSIDE ANGLE
PLAN PROFILE
PLANSPONSOR - December 2021 - January 2022 - Cover1
PLANSPONSOR - December 2021 - January 2022 - Cover2
PLANSPONSOR - December 2021 - January 2022 - 1
PLANSPONSOR - December 2021 - January 2022 - 2
PLANSPONSOR - December 2021 - January 2022 - 3
PLANSPONSOR - December 2021 - January 2022 - INSIGHTS
PLANSPONSOR - December 2021 - January 2022 - 5
PLANSPONSOR - December 2021 - January 2022 - RULES & REGULATIONS
PLANSPONSOR - December 2021 - January 2022 - 7
PLANSPONSOR - December 2021 - January 2022 - 8
PLANSPONSOR - December 2021 - January 2022 - 9
PLANSPONSOR - December 2021 - January 2022 - UPFRONT
PLANSPONSOR - December 2021 - January 2022 - 11
PLANSPONSOR - December 2021 - January 2022 - 12
PLANSPONSOR - December 2021 - January 2022 - 13
PLANSPONSOR - December 2021 - January 2022 - 14
PLANSPONSOR - December 2021 - January 2022 - 15
PLANSPONSOR - December 2021 - January 2022 - ESG Interest Piqued
PLANSPONSOR - December 2021 - January 2022 - 17
PLANSPONSOR - December 2021 - January 2022 - 18
PLANSPONSOR - December 2021 - January 2022 - 19
PLANSPONSOR - December 2021 - January 2022 - 2021 Best in Class DC Providers
PLANSPONSOR - December 2021 - January 2022 - 21
PLANSPONSOR - December 2021 - January 2022 - 22
PLANSPONSOR - December 2021 - January 2022 - 23
PLANSPONSOR - December 2021 - January 2022 - 24
PLANSPONSOR - December 2021 - January 2022 - 25
PLANSPONSOR - December 2021 - January 2022 - 26
PLANSPONSOR - December 2021 - January 2022 - 27
PLANSPONSOR - December 2021 - January 2022 - 28
PLANSPONSOR - December 2021 - January 2022 - 29
PLANSPONSOR - December 2021 - January 2022 - Ramping Up Offerings
PLANSPONSOR - December 2021 - January 2022 - 31
PLANSPONSOR - December 2021 - January 2022 - 32
PLANSPONSOR - December 2021 - January 2022 - 33
PLANSPONSOR - December 2021 - January 2022 - Annuities Still Misunderstood
PLANSPONSOR - December 2021 - January 2022 - 35
PLANSPONSOR - December 2021 - January 2022 - Student Loan Repayment
PLANSPONSOR - December 2021 - January 2022 - 37
PLANSPONSOR - December 2021 - January 2022 - FIDUCIARY FORUM
PLANSPONSOR - December 2021 - January 2022 - INSIDE ANGLE
PLANSPONSOR - December 2021 - January 2022 - PLAN PROFILE
PLANSPONSOR - December 2021 - January 2022 - Cover3
PLANSPONSOR - December 2021 - January 2022 - Cover4
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