Medicare will go bankrupt a few years from now. And, by that time, the federal government could not provide the current health care benefits received by Medicare beneficiaries. What will be the effect? It will be longer waiting periods, extreme budget cuts, and a decrease in health care benefits. If you wish to maintain your access to quality health care services, you must prepare for it. The best strategy that you can have is to get a Health Savings Account or HSA. Health Savings Accounts can help keep you healthy and build your savings for retirement.
At present, Medicare faces a $10 trillion debt. If Medicare goes insolvent by 2024, who will pay for your health care expenses during retirement? A Health Savings Account can help.
A lot of people are treating HSA plans like a retirement savings account. It is the best way to secure your retirement. How?
Health Savings Accounts are paired with high-deductible health insurance policies. This results in lower monthly premiums on your part. Compared to traditional forms of health insurance plans, high-deductible policies give you 40 percent savings on premiums. The savings you get from the premiums can be deposited in your HSA.
Any money that you place in your Health Savings Account can be deducted from your annual income taxes. Employers can even fund your account. You can simply let the balance grow with tax-free interest because the unused HSA funds do not have the “use it or lose it” feature that Flexible Spending Accounts (FSA) have. The balance rolls over every year and you can access it at any point in your life whether during your retirement or when a medical emergency strikes.
You can also invest funds in stocks and bonds to further hasten the growth of your retirement savings. HSA funds can be used to pay for eligible medical expenses that are not covered by your plan and can be withdrawn without incurring any taxes. By the time you reach the age of 65, you can use the money for non-qualified expenses but the money you withdraw will be subject to taxes. Learn more about how Health Savings Accounts can secure your retirement here on our site. If you want a huge savings account by the time you retire, get an HSA plan and fund it now.