Savers use HSAs for current expenses

Savers using Health Savings Accounts (HSAs) are primarily using the funds for current expenses, and not investing, according to new research. The study found that only 9% of accounts were investing in 2020, up from 2% in 2011. Just 4% of accounts that were open for one year had investments, compared with 13% of accounts established for 10 years. Some accounts require a $1,000 account minimum to invest. The report also noted that many account owners may not realize they can invest the funds.

Investors say 2020 changed their outlook

In a survey of high-net-worth investors, 70% reported having a solid relationship with their financial advisor during 2020. While a minority of respondents indicated they had been negatively impacted financially last year, two thirds of respondents indicated they have changed how they think about the future due to the pandemic. Among those, 25% of respondents said there was a change in what they considered important, 20% worried about their financial future, and 19% changed what they want to do in retirement. Most surveyed said they would like to see their advisors hold more client reviews.

Younger workers stressed over finance

Younger workers may find financial stress is impacting their job performance more than other generations, according to a new survey. The study found that nearly 44% of Gen Z and 38% of Millennials said financial stress had affected their ability to do their jobs in 2020, compared with 24% for all other age groups. In addition, one third of Gen Z and Millennials participating in 401(k) plans said they expect to delay their retirement due to the pandemic, compared with one fifth of Gen X.