Empower Retirement and Optum launch innovative, integrated HSA solution for retirement plan participants


New health and retirement savings solution incorporates HSA balances into retirement income projections, giving a holistic view of retirement preparedness

Available this summer to employers to help their employees plan for their future

Empower Retirement, the nation’s second-largest retirement plan provider, and health services leader Optum today launched an innovative health savings account (HSA) for retirement plan participants – The Empower Health Savings Account.

Available this summer to employers, the Empower Health Savings Account will provide plan participants access to an online seamless financial-planning solution that integrates retirement savings with healthcare savings, helping them prepare for healthcare expenses in retirement. The Empower-Optum tool will provide access to investment advice and retirement planning resources that bring together an individual’s health and retirement portfolio to help them understand their options to cover healthcare costs and maximize their savings across tax-advantaged programs.

The Empower HSA plan will enable participants to see and understand the gaps in their retirement plan and develop a strategy to take action, including health plan selection and enrollment, retirement plan management, inclusion of wellness programs and health savings account management, an otherwise daunting task with disparate HSA and retirement plan providers. Optum and Empower’s technology and planning tools integrate the HSA and the retirement plans to provide analysis and forecasting of the participant’s retirement preparedness.

“Healthcare in retirement can be a considerable expense and one that makes retirement planning more challenging. The Empower Health Savings Account can help people prepare for that challenge,” said Edmund F. Murphy III, president of Empower Retirement. “In this exclusive collaboration with Optum, the nation’s largest HSA provider, we’re taking retirement healthcare planning and saving to the next level.”

“This new HSA offering can help consumers create affordability today as well as in retirement,” said Deborah Culhane, senior vice president of Optum. “Our collaboration with Empower enables us to deliver the tools and experiences that our customers want and need to make the best use of their healthcare savings.”

The Empower participant website helps people better understand their future savings needs. The site’s design and functionality is based on years of analyzing factors that drive participant behavior. Empower data shows that participants in defined-contribution retirement plans tend to take action when offered personalized tools and information to help them understand specific factors relating to their retirement preparedness.

Through the Empower HSA, employers will gain a way to help their employees plan for their future. They will have access to aggregated retirement readiness information, including the retirement plan and health savings account data. Employers will also benefit from streamlined administration through a dedicated partner, and integrated tools and services.

Murphy noted that Empower was the first retirement plan provider to offer plan participants the ability to project their healthcare expenses in retirement through the company’s Health Cost Estimator and is continuing that strategy by introducing a solution that helps people understand how their health affects their wealth.