Women face more challenges when it comes to savings and retirement. It is primarily because women encounter a wage gap that follows them into their retirement years. Women only have 70% of the overall income in retirement that men enjoy. Many in that age group have no retirement savings at all. In light of these facts, women need to plan for their retirement and consider health savings accounts (HSA) as a tool to help them achieve their goals and set themselves up for financial security.
HSAs Help Women Lower Their Health Care Costs
In a time when inflation is in the news and healthcare costs are rising yearly, this is welcome news. An HSA paired with a High Deductible Health Plan (HDHP) can generally lead to lower healthcare costs. HDHPs usually have lower premiums, giving you more freedom to pay for health care. Moreover, an HSA is extremely tax-advantaged, allowing women to get those tax savings when they need to spend on qualified medical expenses. Studies have found that over their lifetimes, women spend more than men on medical costs and live longer than men so those savings can add up.
HSAs Help Women Invest in Their Retirement
Women will have a more challenging path considering the gender pay gap and how it affects their financial lives. Even if they invest in their 401(k) plan, they still will come out with less in retirement. Investing their HSA money will give them an additional tool in their retirement tool kit to help them save for retirement medical expenses. Let the power of compound growth work its magic, and watch your HSA savings grow over time into a nice retirement nest egg for your medical expenses (or anything else you may need).
HSAs Help Women with Wellness and Family Planning
Qualified medical expenses cover a range of issues. For women in particular, however, they can help with items such as tampons, liners, pads, and contraceptives. If you are planning for a family HSAs can help with the costs of infertility treatments, pregnancy tests, labor and delivery, and prenatal supplements.
While we work towards reducing the wage gap to level the playing field between men and women, it’s still important to be aware of the facts and plan accordingly to set yourself up for a successful retirement. An HSA is a perfect tool to help women with their retirement goals.