Health savings accounts (HSAs) are unlikely to cover healthcare costs in retirement unless contribution limits on the plans are raised and interest rates rise, the nonpartisan Employee Benefit Research Institute (EBRI) said in a new report.

“One of the difficulties in using an HSA to save money for premiums and out-of-pocket expenses during retirement is that contributions to the HSA are limited by law,” said EBRI's Paul Fronstin. “As a result, the savings needed for retiree healthcare far exceed the savings potential of an HSA.”

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