Mental Health Benefits & Retirement Readiness Weigh On Americans: How Employers Can Help

The HSA Bank Health and Wellness Index surveyed nearly 2,000 healthcare consumers. The survey found that mental health benefits and retirement benefits are among the top concerns for consumers given today's economic trends.

"Financial stress increases health care costs, which affects student enrollment," said Chad Wilkins, president of HSA Bank, which conducted the survey. “At the same time, we're seeing an undeniable concern about retirement readiness, along with increased demand for mental health services and a lack of savings. "Employers have an important role to play in providing the tools, resources and education needed to manage this reality, ultimately improving healthcare decision-making."

As health care affordability and medical debt receive more policy attention, health care costs play an increasingly important role in the minds of consumers.

With the growing focus on mental health services, companies are realizing the need to better support the mental health of their employees. Last year, coverage of mental health services increased from 23% to 27%. As IRS-qualified expenses, employers can offer HSAs, FSAs, and HRAs for mental health coverage.

Most popular services for 2023:

• Annual examination (58%)
• Flu vaccine (49%)
• Dental examination (48%)
• Health Assessment (40%)
• Recommended preventive screening (31%)

As inflation rises, a better understanding of healthcare costs is critical. Employers can provide additional training during open enrollment and throughout the year.

The HSA Bank Open Enrollment Resource Center provides resources on:

• Health Savings Account (HSA)
• Flexible Spending Account (FSA)
• Lifestyle Expense Account (LSA)

These resources can help employees understand how to use their benefits and plan for health care costs throughout the year. Health care costs remain the main reason for not enrolling in a health plan. Of those not currently enrolled in a health plan, 51% said it was because of cost.

Retirement readiness remains a challenge, with 44% of respondents saying inflation has affected their ability to save for retirement. The 65-year-old couple, who retire today, are expected to spend hundreds of thousands of dollars on health care alone. Factor in inflation, and an employee's savings may not be enough for future expenses.

Traditional retirement accounts such as a 401(k), 403(b) or IRA may need to be added to build an adequate nest egg. Many employees supplement their company-sponsored retirement accounts with HSA investment accounts. More than 70% of respondents agreed that they had made changes in the past year to improve the well-being and financial health of their employees, such as budgeting, paying off debt, funding emergency savings and investing.

Additional retirement options offered by HSA Bank include:

• HSA - Save for retirement, tax benefits and health care expenses in a revolving fund
• Retirement schemes - Employers help retirees offset healthcare costs during retirement with tax-free money.
• Tuition Payment Account - Covers the costs that may lead to delays, such as tuition fees

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