3 Reasons an HSA Needs to Be Part of Your Retirement Plan
Many people regard health savings accounts, or HSAs, as near-term savings tools. The money you put into an HSA can be withdrawn immediately to cover medical expenses, so you might assume that it's smart to fund your account minimally, take withdrawals as needed, and call it a day. But actually, HSAs can also serve as an important retirement savings tool. Here are a few reasons to fund one for your later years.
Fidelity reports that the average 65-year-old couple retiring today will spend $295,000 on medical costs throughout retirement, including out-of-pocket expenses under Medicare. That figure further breaks down into $155,000 for single older females and $140,000 for men. If you're planning to live mostly on Social Security, or Social Security benefits coupled with savings, then it will help to have a dedicated source of income on hand to put toward healthcare.
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Source Fool.com
