HSA Bank, a division of Webster Bank, N.A., has released its seventh annual HSA Bank Health & Wealth Index, a comprehensive report that explores trends among consumer finances, health, and well-being.
The index finds strong confidence in choosing the right health plan (84%) but indicates concerns in how to pay for healthcare costs in the next year (35%). Consumers remain moderately engaged in health and wealth activities with a consumer index score of 55.5%, down slightly from 56.6% in 2023.
“This year’s Health & Wealth Index found that consumers remain focused on improving their overall well-being, placing more attention on mental health and methods to improve their finances,” says Chad Wilkins, president of HSA Bank. “It’s clear there is still more work that employers can do to better ease health and wealth challenges that their employees face.”
Key findings include the following.
- Work and finances are impacting mental health differently among generations. Money causes a significantly higher toll on mental health among Gen Z (46%) and millennials (45%) compared to Gen X and baby boomers. Similarly, workplace stress impacts younger generations more than older generations.
- Consumers are relying on alternative medicine. Nearly one in four (24%) report researching their symptoms and treatments instead of visiting a doctor, with 28% claiming they would try natural or herbal medicines and treatments due to rising health costs.
- The majority of consumers are making smart financial decisions. Of the 69% who report making changes to improve their wealth and finances, 45% have created a budget, 41% have paid off debt, 33% have invested their savings, and 27% have specifically saved for an emergency.
The index also emphasizes a need to help consumers prepare for long-term healthcare costs as one in three (36%) are not sure how to pay for healthcare costs during retirement. However, a high number of consumers are taking advantage of the ability to invest their health savings account (HSA) funds and enjoy tax-free growth potential. Of those who have an HSA, 65% report regularly or occasionally investing their funds to cover future healthcare expenses.
“Employers have long focused on supporting employees in their retirement journey with contributions and matches to their retirement plans, however, consumers are increasingly reporting a greater focus on personal and financial well-being,” says Kevin Robertson, chief revenue officer at HSA Bank. “The workforce is looking for employers to support their ability to save for emergencies or support programs that enhance their well-being.”
