Employers and employees alike are starting to look at health savings accounts (HSAs) as a retirement savings strategy, the CPA Practice Advisor reported.

The Plan Sponsor Council of America (PSCA)'s fourth annual HSA benchmarking survey found that half of large employers, and more than a third of respondents overall, say that the HSA is or can be positioned as part of an employee retirement savings strategy.

The key findings included the following:

 • More than 90 percent of participants opened an HSA when given the opportunity;

 • Three quarters of employers make HSA contributions;

 • Sixty percent of employers offer investment options for the HSA—down from 84 percent last year—with more than 20 percent of participants opting to use them;

 •Employers’ primary education continues to be explaining the tax benefits of the HSA (61 percent primarily during open enrollment, and 20 percent throughout the year);

 • Nearly 60 percent of employers allow rollovers from other HSAs;

 •Forty percent of employers automatically enroll employees in the HSA if they enroll in the HAS-qualifying health option.

 • HSAs offer the same pre-tax savings advantage and tax deferral on investment growth as 401(k)s. Unlike those accounts, HSAs allow for the tax-free withdrawal of those funds for eligible health care expenses. Participants also considered HSAs to be short-term spending accounts for healthcare, not longer-term investment vehicles. 

“The uncertainty of future health care expenses is a significant concern for many,” PSCA Director of Research and Communications Hattie Greenan told CPA Practice Advisor. “HSAs can be an important part of a holistic retirement savings approach to address these concerns.”

“Incorporating HSA education as part of a broader financial wellness program throughout the year with multiple touch points, perhaps alongside your retirement plan education, would go a long way towards reframing HSAs,” said Ann Brisk, director of strategic partnerships at HSA Bank.