July 30 2026 | Team nudge
Life moments don't create financial fragility. They expose it.
Life moments don't create financial fragility, they expose it. New research on why employers need to build capability before crisis hits.
Health Savings Accounts are one of the most valuable workplace benefits
4 min read
So why aren't employees making the most of them?
Health Savings Accounts (HSAs) are one of the most tax-efficient benefits available to employees. They can help people pay for healthcare today while building savings for tomorrow.
Yet despite their potential, many employees still aren't making the most of them.
Recent research shows that on the surface, Health Savings Accounts appear to be a success story. By the end of 2025, Americans held 41.7 million HSAs worth nearly $174 billion, reflecting growing access and adoption. But higher participation doesn't necessarily mean employees are using these accounts in the most effective way.
Recent research from the Employee Benefit Research Institute (EBRI) highlights a significant education gap. While employer contributions are the biggest reason employees open an HSA, two-thirds of account holders primarily use it to cover current healthcare expenses, and only around three in ten view their HSA as an investment vehicle. In other words, many employees understand the immediate value of an HSA but are missing one of its greatest advantages: the opportunity to build tax-efficient savings for future healthcare costs and retirement.
That's a significant missed opportunity.
At nudge, conversations with employees across our global community consistently highlight the same challenge. Many people know they have access to an HSA, but far fewer understand how it works, the tax advantages it offers, or how it can fit into their longer-term financial plans.
Healthcare costs can quickly become financial stress
Unexpected healthcare costs remain one of the biggest causes of financial anxiety for employees.
Whether it's welcoming a new baby, managing an ongoing medical condition, supporting children through treatment or simply facing an unforeseen health issue, medical expenses rarely arrive at a convenient time.
These are exactly the moments when financial resilience matters most.
Yet many employees haven't built dedicated healthcare savings, even when their employer is helping them do so.
Many employees are leaving money on the table
Many employers contribute directly to employees' HSAs, sometimes providing hundreds or even thousands of dollars each year.
But through our work with employers, we regularly see that not everyone takes full advantage of these contributions or understands the value they're receiving.
That isn't because employees don't care about their financial wellbeing.
It's because benefits can be complex, unfamiliar and easy to overlook, particularly when healthcare feels like a future problem rather than an immediate priority.
HSAs aren't just for today's medical bills
One of the biggest misconceptions we hear is that HSAs are simply another spending account.
In reality, they can become an important part of long-term financial planning.
Starting early gives employees more time to build savings for future healthcare costs, whether that's starting a family, supporting children through treatments such as orthodontics, covering unexpected medical expenses or preparing for healthcare costs later in retirement.
For those able to invest part of their balance, HSAs can also provide the opportunity for long-term tax-advantaged growth.
The missing piece is capability
Offering an HSA is only part of the solution.
Employees need to understand:
-
how HSAs work
-
why contributing matters
-
how employer contributions can accelerate savings
-
when investing may be appropriate
-
how an HSA fits alongside broader financial goals
When employees understand the benefit, they're far more likely to take action effectively.
That's why financial education matters.
Helping people understand their workplace benefits doesn't just improve participation. It helps employees make better financial decisions, reduce financial stress and build greater financial resilience.
If employers want to maximize the value of the benefits they already provide, education needs to sit alongside the benefit itself, not come afterwards. Benefits create opportunity. Education helps employees turn that opportunity into better financial outcomes. That's where lasting impact begins.
Get in touch to discover how nudge can help your employees better understand, value and use their workplace benefits, creating lasting impact for your people and your organization.