by Helene Cole
The results are in, and the National Association of Plan Advisors (NAPA)’s survey of more than 500 retirement plan advisors has yielded some insights that we think our WEX Health Partners will find illuminating. Of particular interest were the findings about how advisors are viewing and thinking about health savings accounts (HSAs) in terms of retirement and financial planning.
The inaugural NAPA 401(k) Summit Insider survey was sent to financial advisors after NAPA’s annual summit, the largest gathering of retirement plan advisors in the nation, this past spring.
Among the key findings relevant to our Partners:
- Fifty-six percent of financial advisors said they would like more information about HSAs—in the form of white papers, email newsletters, online articles and webinars—more so than any other topic.
- Client Retention was the most important issue raised by the advisors with 57% advisors rating it either “very important” or “important”. Concerns about fee compression followed closely behind client retention, and fiduciary regulation came in as the third biggest concern. WEX Health Partner benchmarks show that offering more than one account or plan increases client retention by more than 40%.
- The advisors’ second most common challenge when it comes to HSAs? Finding trusted HSA administrator partners for their clients, cited by more than a third (36 percent) of advisor respondents.
- Advisors also reported issues understanding HSA compliance regulations, complaints about “low investment opportunity and potential” and concern regarding consumers’ ability to save healthcare dollars. WEX Health and its network of Partners work hard to develop tools and technology to help employees better understand and use their healthcare benefits to save costs and ease the burden of healthcare. HSAs are the cutting edge way to not only save for the unexpected costs of healthcare – but also help you save for retirement as well.
Sponsored by WEX Health, the NAPA 401(k) Summit Insider report correlated financial advisors’ increased interest in HSAs to growing concerns about the cost of healthcare in retirement. The report cites Fidelity’s Retiree Health Care Cost Estimate, which said that a 65-year-old couple retiring in 2017 will need an estimated $275,000 to cover healthcare costs in retirement, up from an estimated $245,000 in 2015.
Have questions about health savings accounts? We have answers; review our FAQ here.