Nationwide to offer Health Savings Accounts
Integrating a designated savings vehicle for health care expenses with its 401(k), 457 and 403(b) retirement plans
Columbus, OH - Nationwide announced its plans to make health savings accounts (HSAs) available in response to the perfect storm brewing for America’s future retirees. With health care costs continuing to rise, less certainty that Social Security income will remain at current levels and Americans living longer, future retirees need additional savings vehicles to cover out-of-pocket health expenses in retirement.
The Nationwide HSA will be administered by HealthEquity, Inc., the nation’s largest independent HSA custodian.1
HSAs allow for pre-tax contributions to pay for qualified health care expenses that insurance doesn’t cover now or in the future. HSAs are an attractive savings vehicle because of a triple-tax advantage: tax-free employee contributions, tax-free investment growth and tax-free withdrawals for qualified medical expenses.
“We are committed to bringing America’s workers solutions designed to help them gain confidence and take action to efficiently prepare for health care expenses in retirement,” said John Carter, president of Nationwide’s retirement plan business. “HSAs supplement workplace savings plans, while offering special tax treatment not found in other retirement accounts.”
HSAs boost total savings for retirement
A 2018 Alight study demonstrated that when workers are eligible to contribute to HSAs and 401(k)s, those who use both save more than people who use just one. The Nationwide HSA will allow participants to more efficiently track their 401(k), 457 and 403(b) plans along with their HSA, while offering access to education and investment selection.
“The Nationwide Retirement Institute has been educating consumers on managing health care costs in retirement for six years, and our research shows that more than 73 percent of future retirees say that one of their top retirement fears is health care costs going out of control,” said Kristi Rodriguez, leader of the Nationwide Retirement Institute. “We believe saving for health care expenses down the road is a critical component of a successful retirement plan.”
Nationwide HSAs will be available beginning first quarter 2019. For more information on HSAs, go to http://www.nationwidefinancial.com/nationwide-retirement-institute/health-savings-accounts.
HealthEquity connects health and wealth, delivering health savings account (HSA), 401(k) and other consumer driven health and retirement solutions in partnership with over 40,000 employers and 124 health plans and administrators nationwide. HealthEquity members have access to its end-to-end platform and remarkable “purple” service to become consumers of healthcare while building health and retirement savings for tomorrow. HealthEquity is the custodian for $7.0 billion in assets for 3.6 million HSA members nationwide. For more information, visit www.HealthEquity.com.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter.