Call it an “incentive plan.” Transamerica this week announced an initiative that encourages employees to save more now for retirement and medical costs by providing special incentives until the end of the year.
For small businesses that select Baltimore-based Transamerica as their retirement plan and health savings provider before December 31, Transamerica said it will waive administration and participant fees on their health savings accounts and flexible spending accounts for two full quarters. In addition, Transamerica will offer its signature Plan Administration Service Support (PASS) communication services at no cost to the employer during the retirement plan’s conversion period.
“People are concerned about saving for retirement and the possibility that medical costs will deplete their savings. Health savings accounts and flexible spending accounts can help relieve these worries.”
Transamerica’s Phil Eckman
“Over the past year, we have heard from participants that they value support in planning their financial future. With recent inflation and market volatility, they are especially concerned about how to save consistently for retirement and medical costs for the rest of their lives,” said Phil Eckman, President of Workplace Solutions at Transamerica. “By choosing Transamerica as the provider for the retirement plan and health savings programs, employers and their participants can take an essential, multi-pronged approach to saving for retirement and future healthcare expenses. We believe that everyone deserves a financially secure future.”
Health savings accounts and flexible savings accounts offer significant tax savings for the employee to pay for current eligible medical expenses, or to invest and save for health expenses in retirement. With Transamerica, employees have the convenience of tracking their retirement plan, health savings account, and flexible spending account in one location.
“People are concerned about saving for retirement and the possibility that medical costs will deplete their savings. Health savings accounts and flexible spending accounts can help relieve these worries. Transamerica is thrilled to offer these valuable options to our customers,” Eckman added. “These accounts are especially advantageous because workers can save pre-tax dollars for future medical expenses. Transamerica emphasizes using health savings accounts and flexible spending accounts to accumulate funds to pay for medical expenses. These savings can even help pay for Medicare premiums in retirement. We believe these savings strategies will resonate with individuals seeking to build more confidence about their financial stability.”
In January 2022, the Employee Benefit Research Institute (EBRI) projected that some couples could need as much as $360,000 in savings for health expenses. Savings are needed to pay for Medicare Parts B and D premiums, the Part B deductible, premiums for Medigap Plan G, and out-of-pocket spending for outpatient prescription drugs.
For more information, employers may contact their financial professionals.
SEE ALSO:
• Just How Much a Retiree Will Spend on Healthcare: Milliman
• Inflation Sparks Big Jump in 2023 HSA Contribution Limits
• RBC Wealth Management, Transamerica, FuturePlan Team Up to Offer Pooled 401k