Health Savings Accounts Are Even More Valuable for Women. Here's Why.
Image source: Getty Images The gender pay gap is an unfair fact of life in America's workplace, and getting paid less than men causes far-reaching consequences in many women's lives. When women get paid less, they have less money to invest for retirement or spend on everyday necessities. Lower-paid women might even miss out on lifesaving healthcare.Alert: highest cash back card we've seen now has 0% intro APR into 2026 This credit card is not just good – it's so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes. Let's look at a few stark facts about why women need healthcare money -- sometimes even more than men -- and how people of all genders can improve their financial stability with health savings accounts (HSAs).Why women skip healthcare more than menA recent study from Deloitte, the 2024 Deloitte Health Care Consumer Survey, found that 50% of women skipped or avoided getting healthcare last year, compared to 37% of men. It's not good for anyone to skip healthcare, but women seem more likely to do it because of costs.The Deloitte study found:Women are 31% more likely than men to skip healthcare because of concerns about costs.21% of women decided not to see a doctor at some time last year because the cost was too high -- up from 15% in 2015.44% of women (and 25% of men) said they are "not prepared" or "slightly prepared" to pay $500 for an unexpected medical emergency. These percentages are up from 37% of women and 19% of men two years ago.One good way for women (or men) to set aside some extra cash for medical expenses is to use a health savings account. If you have a qualifying high-deductible health plan (HDHP), you can set up an HSA and sock away extra money for healthcare costs.Want to find a health savings account provider? Check with your employer -- but also get familiar with our list of the best brokerages. Some of these top-rated investment firms also offer health savings accounts. For example, Fidelity offers an HSA, and Charles Schwab offers brokerage account services for some HSA providers.Why now is the best time to open a health savings accountRight now is open enrollment for health insurance. You're probably receiving communication at work about how now is the time to choose a new health plan for 2025. This is the perfect time to open an HSA. Here's how:Choose a high-deductible health plan that qualifies for a health savings account. This is also called an "HSA-eligible plan."Choose a health savings account provider to host your HSA. Sometimes your employer's benefits program will have a preferred provider, but you can often choose your own HSA plan. Fidelity and Bank of America are two major national financial institutions that offer HSAs.Decide how much money to contribute to your HSA. If you're covered by a high-deductible health plan and eligible to use the HSA for the entirety of 2025, you can put up to $4,300 (for self-only coverage) or $8,500 (for family coverage) into a HSA in 2025. And that money is all tax deductible!It's not too late to choose an HSA-eligible health insurance plan and open an HSA for 2025. But you need to take some time to review your options for your employee benefits at work, if you have them. Or if you get health insurance through HealthCare.gov, keep in mind that the deadline is Dec. 15, 2024 to enroll for coverage starting on Jan. 1, 2025.Why women need long-term growth of HSA moneyHSAs are not the only way to pay for medical bills. You could also use a high-yield savings account, or as a last resort, consider medical credit cards to finance your healthcare expenses. But HSAs let you plan ahead and the money you save is tax-advantaged. And you can invest the money in your HSA for long-term growth, just like an IRA or brokerage account.Here are a few reasons why HSAs can be an especially good deal for women.Women tend to need more healthcare than menFidelity research shows that an average 65-year-old retiree will need $165,000 of savings to cover out-of-pocket healthcare expenses in retirement. Deloitte's survey also found that women need 9.9% more healthcare than men (even excluding maternity care for women who become pregnant). So if you assume that women need about 10% more healthcare in retirement, that means (based on the Fidelity figure) women might need an extra $16,500 to cover their medical expenses.Women tend to live longer than menAlong with saving and investing for healthcare costs, women should think about using HSAs to invest for a longer life in retirement. According to CDC data, women live about 5.4 years longer than men. That means women need more money to pay the bills during those extra years of life. Health savings accounts can help with this. You can invest your HSA money for retirement, just like an extra IRA account, and the money can be withdrawn tax free
Image source: Getty Images
The gender pay gap is an unfair fact of life in America's workplace, and getting paid less than men causes far-reaching consequences in many women's lives. When women get paid less, they have less money to invest for retirement or spend on everyday necessities. Lower-paid women might even miss out on lifesaving healthcare.
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Let's look at a few stark facts about why women need healthcare money -- sometimes even more than men -- and how people of all genders can improve their financial stability with health savings accounts (HSAs).
Why women skip healthcare more than men
A recent study from Deloitte, the 2024 Deloitte Health Care Consumer Survey, found that 50% of women skipped or avoided getting healthcare last year, compared to 37% of men. It's not good for anyone to skip healthcare, but women seem more likely to do it because of costs.
The Deloitte study found:
- Women are 31% more likely than men to skip healthcare because of concerns about costs.
- 21% of women decided not to see a doctor at some time last year because the cost was too high -- up from 15% in 2015.
- 44% of women (and 25% of men) said they are "not prepared" or "slightly prepared" to pay $500 for an unexpected medical emergency. These percentages are up from 37% of women and 19% of men two years ago.
One good way for women (or men) to set aside some extra cash for medical expenses is to use a health savings account. If you have a qualifying high-deductible health plan (HDHP), you can set up an HSA and sock away extra money for healthcare costs.
Want to find a health savings account provider? Check with your employer -- but also get familiar with our list of the best brokerages. Some of these top-rated investment firms also offer health savings accounts. For example, Fidelity offers an HSA, and Charles Schwab offers brokerage account services for some HSA providers.
Why now is the best time to open a health savings account
Right now is open enrollment for health insurance. You're probably receiving communication at work about how now is the time to choose a new health plan for 2025. This is the perfect time to open an HSA. Here's how:
- Choose a high-deductible health plan that qualifies for a health savings account. This is also called an "HSA-eligible plan."
- Choose a health savings account provider to host your HSA. Sometimes your employer's benefits program will have a preferred provider, but you can often choose your own HSA plan. Fidelity and Bank of America are two major national financial institutions that offer HSAs.
- Decide how much money to contribute to your HSA. If you're covered by a high-deductible health plan and eligible to use the HSA for the entirety of 2025, you can put up to $4,300 (for self-only coverage) or $8,500 (for family coverage) into a HSA in 2025. And that money is all tax deductible!
It's not too late to choose an HSA-eligible health insurance plan and open an HSA for 2025. But you need to take some time to review your options for your employee benefits at work, if you have them. Or if you get health insurance through HealthCare.gov, keep in mind that the deadline is Dec. 15, 2024 to enroll for coverage starting on Jan. 1, 2025.
Why women need long-term growth of HSA money
HSAs are not the only way to pay for medical bills. You could also use a high-yield savings account, or as a last resort, consider medical credit cards to finance your healthcare expenses. But HSAs let you plan ahead and the money you save is tax-advantaged. And you can invest the money in your HSA for long-term growth, just like an IRA or brokerage account.
Here are a few reasons why HSAs can be an especially good deal for women.
Women tend to need more healthcare than men
Fidelity research shows that an average 65-year-old retiree will need $165,000 of savings to cover out-of-pocket healthcare expenses in retirement. Deloitte's survey also found that women need 9.9% more healthcare than men (even excluding maternity care for women who become pregnant). So if you assume that women need about 10% more healthcare in retirement, that means (based on the Fidelity figure) women might need an extra $16,500 to cover their medical expenses.
Women tend to live longer than men
Along with saving and investing for healthcare costs, women should think about using HSAs to invest for a longer life in retirement. According to CDC data, women live about 5.4 years longer than men. That means women need more money to pay the bills during those extra years of life. Health savings accounts can help with this. You can invest your HSA money for retirement, just like an extra IRA account, and the money can be withdrawn tax free after age 65.
Women are better at investing than men
Women tend to get paid less than men, but they partially make up for this unfair gap by being steadier, more disciplined, more skillful investors. Motley Fool research shows that women tend to outperform men as investors by about 1% per year. This is another reason for women to open an HSA and invest your HSA dollars -- you have the potential to achieve bigger long-term investment growth.
Bottom line
Women face a few unfair disadvantages at work and in America's healthcare system. Health savings accounts can help bridge these gaps. During open enrollment, don't miss your chance to choose an HSA-eligible health insurance plan, and start saving for your future medical bills with tax-deductible dollars.
Alert: highest cash back card we've seen now has 0% intro APR into 2026
This credit card is not just good – it's so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
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