Invest with confidence: How women can use HSAs for long-term wealth

March is Women’s History Month, a time to celebrate the achievements of women across industries—including finance. While women have made incredible strides in wealth-building and financial independence, there are still areas where confidence lags. One of those areas? Investing in health savings accounts (HSAs).

Despite their powerful benefits—including triple-tax advantages, long-term savings potential, and investment opportunities—many women hesitate to invest their HSA funds. Whether due to risk concerns, misconceptions, or competing financial priorities, this hesitation can lead to missed opportunities for financial security—especially in retirement.

This Women’s History Month, let’s break down why investing HSA funds is a smart move for women and tackle common misconceptions that may be holding them back.

What are some common misconceptions about HSA investments?

1. “I should only use my HSA for immediate medical expenses.”

Many women think of an HSA as a spending account rather than a long-term investment tool. While HSAs can cover current medical costs, they are even more valuable when used as a tax-free investment vehicle for future healthcare expenses, especially in retirement.

2. “Investing is too risky—I don’t want to lose my healthcare savings.”

It’s understandable to be cautious with healthcare dollars. However, HSAs offer flexible investment options, ranging from conservative choices like bonds to growth-focused stock funds. You can start small and adjust your investments over time.

3. “I need to keep my HSA funds liquid in case of an emergency.”

Unlike other savings accounts, HSA funds roll over every year—there’s no deadline to use them. Plus, you can pay for medical expenses out-of-pocket now and reimburse yourself later—even years down the road—once your investments have grown.

4. “I don’t have enough money to contribute and invest.”

Many women prioritize family finances, retirement, or debt repayment over investing their HSA funds. But some HSA providers allow investing with as little as $1,000 in cash reserves, making it more accessible than many realize.

5. “HSAs are too complicated to manage.”

While HSAs do have some unique rules, their tax advantages and investment potential outweigh the complexity. Many providers offer easy-to-use investment platforms and guidance, making investing more approachable.

Why should women invest their HSA funds?

1. HSAs provide a safety net for retirement

Women tend to live six years longer than men on average, meaning they will likely face higher lifetime medical expenses. HSAs can serve as a dedicated healthcare fund in retirement, covering costs like Medicare premiums, long-term care, and out-of-pocket expenses.

2. Investing helps maximize growth

When left in cash, HSA funds don’t grow beyond the initial contribution. But investing allows for compounding growth over time. Even small, consistent investments can turn into a substantial tax-free healthcare fund.

3. HSAs offer unmatched tax benefits

HSAs provide a triple-tax advantage:

• Contributions are tax-deductible, reducing taxable income.
• Growth is tax-free when invested.
• Withdrawals for qualified medical expenses remain tax-free.

No other investment account—not even a 401(k) or IRA—offers these same benefits, making HSAs a powerful tool for building wealth.

How to boost confidence in HSA investing

1. Start small and learn the basics

Many HSA providers offer automated investing and educational resources. Starting with a small percentage of HSA funds and gradually increasing investments can help women build confidence over time.

2. Shift from a spending to a saving mindset

Many women excel at budgeting and saving but may not think of HSAs as an investment tool. Viewing an HSA as a long-term financial asset rather than a short-term spending account can lead to smarter money decisions.

3. Take advantage of employer contributions

Some employers offer HSA contributions, which provide an instant boost to savings. Using this “free money” can help build an investment base faster without extra out-of-pocket contributions.

4. Seek financial education and support

Confidence grows with knowledge. Employers, financial advisors, and online resources can help women understand investment risks, fund choices, and long-term benefits. Joining financial communities or consulting an advisor can also make a big difference.

This Women’s History Month, take a moment to ask: Are you making the most of your HSA? It’s time to start investing and let your savings work for you. Check out our Benefits Buzz podcast episode below to hear HSA savings and investment stories!

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax and investment advisers. 

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