Why Health Savings Accounts belong in every benefits strategy

In April, America Saves Week will invite individuals to take a closer look at their financial picture and take small, meaningful steps towards meeting their savings goals. For employers and brokers, it’s also a powerful moment to evaluate whether today’s benefit offerings are truly helping employees prepare for their biggest financial challenges — especially health care costs.

And those costs are only going up, driving an increasing need for health care savings tools and opportunities.

Rising health care costs are putting pressure on employees

Health care continues to consume a growing share of both household and national budgets. According to national health expenditure data, health care spending grew 7.2% in 2024 to an average of $15,474 per person.¹

For employees, this may translate into costs that can derail savings goals and create financial stress, even for those who are insured. In fact, a recent survey of 20,000 American adults found that over one-third of respondents have made at least one trade-off with daily living expenses to afford health care.²

The often overlooked cost of health care in retirement

An important thing to keep in mind is that health care costs don’t disappear in retirement. Employees need to be planning for their future health care expenses as well.

It is estimated that a 65-year-old man enrolled in a Medigap plan with average premiums will need to have saved $120,000 to have a 50% chance of having enough money in savings to cover premiums and median prescription drug expenditures, and a 65-year-old woman will need to have saved $146,000. To have a 90% chance of meeting their health care spending needs in retirement, a man will need to have saved $212,000, and a woman will need to have saved $252,000.³

This gap between awareness and preparation represents both a challenge — and an opportunity — for employers and brokers to help employees prepare for their financial future.

HSAs: A practical tool for health care costs now and later

Health savings accounts (HSAs) are uniquely positioned to help eligible employees manage today’s health care expenses while also offering the opportunity to build a tax efficient balance for the future.

HSAs offer a triple tax advantage:

• Contributions are made on a pre-tax basis via payroll deduction
• Investment growth is tax free
• Withdrawals for qualified health care expenses are tax free

Unlike flexible spending accounts, HSA balances are not “use it or lose it” and unused funds stay with the employee — even into retirement. Funds used towards eligible medical expenses are always tax-free, but after age 65, funds still in an HSA can be used for non‑eligible expenses as well. Those expenses will be taxed like traditional retirement income but not incur the penalty, adding flexibility as health care needs evolve.

In an environment where health care costs are rising faster than wages and inflation,⁴ HSAs are one way for eligible employees to contribute and save intentionally for one of their largest lifetime expenses.

Why employers and brokers should consider prioritizing HSAs

Offering an HSA compatible health plan isn’t just about plan design — it’s about demonstrating a commitment to employees’ long-term financial well-being.

For employers, HSAs can:

• Complement retirement benefits by addressing health care as a distinct savings need
• Support financial wellness initiatives
• Provide payroll tax advantages on employee contributions
• Enhance benefit competitiveness without significantly increasing plan costs
• Drive enrollment in high deductible health plans (HDHPs) which may have lower costs for employers

For brokers, HSAs offer a meaningful way to help clients:

• Respond to rising health care and benefits costs
• Differentiate their benefits strategy in a tight labor market
• Encourage smarter consumer behavior around health care spending

When paired with education and engagement, HSAs can become a valued — and versatile — benefit in an employer’s offering.

A good moment to act

America Saves Week is about empowering better financial habits. Helping employees understand how health care costs impact both their working years and retirement — and giving them tools to prepare — aligns directly with that mission.

By considering HSAs as part of a broader benefits strategy, employers and brokers can help employees take meaningful steps today that help to support financial confidence tomorrow.

Learn More About a Voya HSA

America Saves is not affiliated with the Voya® family of companies. Any opinion expressed does not necessarily reflect theirs and they do not endorse or provide specific advice or recommendations for any product, plan or individual.

Voya Financial is a participating organization in America Saves in 2026.

1 NHE Fact Sheet, Published 1/14/26 ,Centers for Medicare & Medicaid Services
2 One-Third of Americans Cut Back to Cover Healthcare Expenses, Gallup.com, 3/12/26
3 EBRI Issue Brief No. 653, Published 3/5/26, Employee Benefits Research Institute
4 Study finds employer health insurance costs have tripled relative to employee pay since 1999, published 12/15/25. Rice University, rice.edu