Advantages of a Health Savings Account (HSA)

How Health Savings Accounts Can Support Retirement Savings

When planning for retirement, it is easy to focus on the fun parts like travel or hobbies, but one of the biggest expenses many people face is healthcare.

Costs continue to rise, and one estimate suggests that individuals may need over $170,000 for medical expenses in retirement.[1]

That is where a Health Savings Account, or HSA, can play an important role.

What makes Health Savings Accounts so valuable

Health Savings Accounts offer a way to save for both current and future medical expenses.

Here are a few key benefits:

• Contributions can be made pre-tax or may be tax-deductible.
• Your savings balance can grow over time, including interest or investment earnings.
• Withdrawals for qualified medical expenses are tax-free.

This combination is often referred to as a “triple tax advantage,” which make HSAs a powerful savings tool.

Another important feature is flexibility. Any unused funds roll over each year, so you do not lose what you do not spend. Over time, this helps build a dedicated savings pool for healthcare costs.

Guide to HSAs

How an HSA works alongside your retirement plan

An HSA is not a replacement for your 401(k), but it can complement it. Your 401(k) is designed to help cover everyday living expenses in retirement. On the other hand, an HSA can help you prepare for healthcare costs both now and in the future.

Mayflower Advisors

265 Franklin St., Ste 401 Boston, MA 02110

617-259-1767

https://www.mayfloweradvisors.com/

MFARetirement@mayfloweradvisors.com

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed.  There is no representation or warranty as to the current accuracy, reliability, or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Securities offered by registered representatives through Private Client Services (“PCS”), Member FINRA/SPIC. Advisory services offered through Mayflower Advisors, LLC (“MFA”), an SEC registered investment adviser. PCS and MFA are not affiliated. Advisory services are only offered to clients or prospective clients where MFA and its representatives are properly licensed or exempt from licensure. For current MFA information, please visit the Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov by searching with MFA’s CRD #307857.