Working longer is fast becoming the go-to retirement strategy for aging baby boomers who have landed in their 50s and 60s without enough saved up to stop working around the classic retirement age of 65 or so. “Understanding FIRE: Financial Independence, Retire Early”
5 Tips to Make Sure Your Strategy is Built to Deliver Retirement Security
Saving for retirement is never going to be a task that gets filed under “easy.” It’s on you to figure out how much to save, where to save, and how to invest your money. Then, after years of saving you’re also on the hook to come up with a plan to take money out of those accounts at a pace that won’t run your funds dry too fast.
Helping employees stay healthy and prepare for retirement is at the core of most benefits offerings. Healthcare insurance is for today and retirement savings is for tomorrow. These two benefits serve as the stable of any well-rounded benefits plan.
The 401(k) is the gold standard of retirement savings with dedicated funds to save tax-free money. Tax-free growth only sweetens the deal. Likely why 32% of all Americans have a 401(k). What if there was another tax-saving vehicle that could be used just like a 401(k), but had an extra tax advantage and was for health cost as well? The HSA might be the only 2 for 1 deal offered for healthcare and retirement savings.
Health costs are rising. Over time, these costs experience compound growth. How can you save for today to combat that cost growth? A Health Savings Account. An HSA is the only dedicated health account that can help you save or invest money for the long-term. In fact, the long-term value of an HSA is not just limited to dedicated health savings, it is actually another IRA hiding in plain sight. Let us show you how to take advantage of your HSA benefits.
Signing up for Medicare can have a significant impact on your healthcare coverage and HSA benefits. You don’t want to be stuck with limited coverage (and high out-of-pocket costs) or having an IRS tax liability at the end of the year.
A recent study by Alight Solutions has laid out the connections between healthcare, 401ks, and the HSA. We broke out these relationships even further to outline the savings impact on age, gender, income and healthcare dependents.
“Want to Save More? 401(k)s and HSAs are a Perfect Match”
Saving for retirement is hard enough. Having those hard-earned funds taxed in retirement can feel emotionally frustrating and financially exhausting. No matter how much money you have saved for retirement, the further that money can go, the better. Here is how to use two retirement tax vehicles to save the most money today, and have 100% tax-free retirement income.
One of the mainstays of employer benefits packages, the 401(k) and its cousin, the 403(b), are this generation of employees’ retirement workhorses. Updated by Congress under the Pension Protection Act of 2006 (“PPA”), employers can opt you into the plan, initiate automatic deposits from your payroll and even increase the percentage over time, all in your best interest.
Investing your HSA can help increase your health savings for the long-term. Finding ways to balance long-term savings with qualified out-of-pocket medical expenses that are part of your normal life will help create a balanced approach for HSA growth, reimbursements and savings.