Balances are expanding in the health savings accounts (HSAs) provided for employees who participate in consumer-driven health plans, suggesting HSAs may be gaining traction as a way to save for health expenses in retirement. HSA balances are still small, though, and a far cry from what people will need in retirement.

J.P. Morgan Treasury Services reports that in 2011, the average balance of the 900,000 HSAs that it administers grew 4%, to $1,547, and at year-end, 36% of accounts had balances of more than $1,000.

Elena Szymanski, executive director of J.P. Morgan Treasury Services, notes that 74% of account holders contributed more to their account than they paid out last year. "That indicates a trend toward being able to save and use this as a savings vehicle," Szymanski says.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.