Older Americans should plan to retire with a 6-figure HSA, expert says. But few realize this account's 'full potential'

Core Insights - The article emphasizes the importance of Health Savings Accounts (HSAs) as a retirement savings vehicle, suggesting that individuals should aim to retire with a six-figure HSA balance [2][5] - Many HSA holders are unaware of the potential benefits of using HSAs for retirement savings, leading to missed opportunities for building savings [1][4] HSA Demographics and Usage - There are over 39.3 million HSAs in the U.S., covering approximately 59.3 million people [1] - Only 23% of Americans are currently contributing to an HSA for retirement healthcare costs, and just 30% are investing their HSA assets [4] Investment Opportunities - Two-thirds of financial institutions offering HSA programs also provide investment options, yet only 20% of participants invest their contributions, with an average of 27% of those balances in non-cash investments [3] - Experts highlight that HSAs can be a critical component of retirement planning, offering tax-advantaged growth potential to help manage healthcare expenses in retirement [5] Healthcare Cost Projections - A 65-year-old retiring in 2025 is expected to spend an average of $172,500 on healthcare and medical expenses throughout retirement [5]