Many HSA holders don’t realize the retirement savings potential of their accounts. Only 23% of Americans are contributing to an HSA, with just 3-in-10 investing their assets. A six-figure HSA is recommended for retirement, as health care costs are expected to rise.

Despite potential costs, the average HSA balance for those 55+ is $6,564. However, 52% of pre-retirement HSA holders aged 55-64 aren’t aware of the retirement savings potential. Additionally, 47.2% of plans require a minimum balance of $1,000 to invest, making it challenging to maintain.

Considering the tax advantages and expected medical costs in retirement, utilizing your HSA in your retirement plan is advised. Speaking to an advisor can help determine the optimal amount to invest based on your accounts and goals. Prioritizing employer-matched accounts like 401(k)s is important, and an advisor can help you find room in your budget.

It’s crucial to understand the potential of your HSA as a retirement savings vehicle and take advantage of the tax benefits. The article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Read more at Yahoo Finance: Older Americans should plan to retire with a 6-figure HSA, expert says. But few realize this account’s ‘full potential’