New findings from Lively calls for better implementation of health savings accounts (HSAs) and health benefits, as the benefits platform sees increased usage of HSAs on their platform.
According to Lively’s 2025 HSA Outlook report, account balances were 35% higher on Jan. 1 at $4,923, compared to the industry average of $3,639.
“HSAs have long been a strategy to help offset the high cost of healthcare. Making healthcare more affordable and accessible is at the core of our mission at Lively and I’m proud that we’re making strides towards that goal,” said Alex Cyriac, co-founder and CEO of Lively.
Lively’s push for HSA usage comes as more Americans struggle with rising day-to-day and long-term costs, including healthcare spending. A 2024 Retiree Health Cost Index report by Milliman projected that an average healthy 65-year-old male retiree could spend between $128,000 to $281,000 a year on healthcare, depending on the type of plan they’re enrolled in.
Women with the same coverage could spend an average of $147,000 and $320,000 under certain plans, found Milliman.
“Healthcare expenses are an important and sometimes overlooked component of retirement planning,” said Robert Schmidt, a Milliman principal and co-author of the Retiree Health Cost Index, at the time. “By taking a realistic look at their health status and healthcare expenses, and then budgeting accordingly, people can take steps to enjoy a less stressful, financially healthier retirement.”
Lively’s latest research supports key findings reported last year by the organization. It’s 2024 Employee Benefits Pulse Check study found that 64% of human resource (HR) leaders expect health insurance costs to rise between 10% to 35% within the next year, and 80% believe that offering a competitive financial benefit is more important compared to a year ago.
Furthermore, the study pinpoints just how much participants care about health insurance benefits. Fifty percent of respondents in Lively’s 2024 study said that health insurance is the most important benefit for employee recruitment and retention, and 62% expect enrollment in high deductible health plans to increase within the next year.
SEE ALSO:
401(k), HSA Account Balances Grow in Q2: Bank of America
Morningstar HSA Report: Lower Fees, Better Investments, But Lots of Room for Improvement
HSAs are Evolving: Here’s What to Know Beyond the Basics
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
