Millennials are often chastised for their spending and savings habits. They love their morning coffee but aren’t saving enough money for their future. You might not know, they love HSAs as much as they love their morning frappuccinos.
Millennial HSA Growth
In a study of 1.3 million employees from 540 large employers, HSA participation among millennials has skyrocketed by 76% in 2018. This was a significant increase from the 40% increase in 2017.
Millennial HSA contributions also increased by 15% for family plans ($2,305) and 13% for individual plans ($1,139). Please note the HSA maximum contributions for 2019 are $3,500 for individuals and $00 7,0for families, so millennials have lots of room to increase their yearly contributions to save more for their health.
Generation X and Baby Boomer HSA Participation
But not to be outdone, HSA participation for Generation X increased to 85%, following closely by Baby Boomers at 84%. In general, this study showed the nuances of a more general trend in employer-sponsored HSAs. In 2016, 29% of employers offered an HSA-eligible health plan. One of the many reasons HSA accounts grew to over 22 million in 2017.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.