MILWAUKEE, Aug. 12, 2021 /PRNewswire/ -- HSA Bank, a division of Webster Bank, N.A., announced today that it has expanded access to a new solution designed to support employees into retirement - the retiree reimbursement arrangement (RRA).
With National Financial Awareness Day coming up on August 14, retirement preparedness is top of mind for many Americans and their employers. An RRA is a solution for employers looking to help their retirees offset healthcare costs in retirement even if they do not offer a group retiree health plan.
The 2021 HSA Bank Health & Wealth Index℠, found that future financial preparedness for older Americans is a serious concern. Ninety three percent of consumers over 55 years old are worried about current or future medical bills and of those consumers, more than one third reported they rarely save money for future healthcare expenses. This is a real problem for Americans and according to a recent study by HealthView Services, it is estimated that a healthy, average couple age 65 who retired in 2020 will spend $662,156 on retirement healthcare expenses.
Compared to defined benefit retiree healthcare plans, RRAs can be a more predictable and cost-effective option for employers to continue to provide for their employees into retirement. By contributing funds, employers can provide their employees with tax-free money to help them pay for Medicare premiums and other qualified medical expenses incurred during retirement. If all funds follow guidelines from the Internal Revenue Service (IRS), the contributions are also tax-deductible for the employer.
"We are thrilled to offer this retirement solution for more employers," said Jason Kessler, Senior Vice President, Director of Product Management at HSA Bank. "RRAs are a great way for employers who offer HSAs to their active populations to continue to play a part in the well-being of their employees into retirement, and are part of a larger focus of HSA Bank to provide peace-of-mind and financial security for consumers throughout their lives."
About HSA Bank: At HSA Bank, we're working toward a world where everyone is empowered to save for a healthy future. By providing the right tools and resources, we make it simple for our 3 million members nationwide to maximize their savings for healthcare and long-term goals. As a leader in health accounts for over two decades, we continue to innovate. Our offerings in the healthcare savings space drive down healthcare costs, increase access, and assist with decision-making for consumers, health plans, partners, and advisors. As of June 30, 2021, HSA Bank had $10.7 billion in total footings comprising $7.3 billion in deposit balances and $3.4 billion in assets under administration through linked investment accounts and is a division of Webster Bank, N.A., Member FDIC. To learn more, visit hsabank.com.