FIDELITY’S WINTER 2021 A healthier, happier 2021 · 2020. 12. 16. · FIDELITY’S PULSE ON...

pulseF I D E L I T Y ’ SO N H E A L T H C A R E

WINTER 2021

A healthier, happier 2021

31 days to better well-being

In praise of lower standards

5 ways to build hope

Don’t get lost!

68%

of employees don’t fully

understand their health

plan benefits

If you don’t know all the ins and outs of your health plan, you’re not alone. Do yourself a favor and spend just a few minutes exploring your workplace benefits. Do you have access to telemedicine or a health navigator? If you aren’t sure, you may be missing out.

Fidelity Investments Health Framework Research online survey of 5,014 employees. The survey was conducted by Greenwald and Associates, an independent third-party research firm on behalf of Fidelity from February 20–March 5, 2020.

FIDELIT Y’S PULSE ON HE ALTH CARE WINTER 2021 / 3

Welcome message When the calendar turned to 2020, it’s probably safe to say there weren’t too many people resolving to stay at home as much as possible and gain 20 pounds. But here we are.

The past year has been hard on all aspects of well-being—money, health, work, and life. And, on top of all of that, there was ever-present stress.

With this issue of Pulse, Fidelity’s health care magazine, we offer small steps you can take to tend your mental health and set yourself on a path for a better year. We also want to help you be prepared for any future challenges to come along.

Most of all, we wish you a happier, healthier 2021.

— Fidelity

Contents

4 31 days to better well-being

6 5 ways to build hope

8 How to build up your financial immune system

12 5 reasons to call your EAP

14 In praise of lower standards

18 The first year in an HSA

Who struggles with mental health?

WHO ARE HOPEFUL

1 in 3 2 in 3WHO ARE NOT HOPEFUL

Fidelity Investments 2020 Health and Financial Preparation During a Crisis online survey of 1,004 participants using a nationally representative sample. This survey was conducted by a third-party research firm not legally affiliated with Fidelity, March–April 2020.


31 days to better well-beingSimple steps to help you feel better in any part of life.January is the time when many people make big promises to live a healthier, wealthier, more fulfilled life. These goals can be big and broad— and really hard to check off a to-do list. We set out to find one small step you can make each day to help build better well-being in all areas of your life—health, money, work, and life. We chose 31 tips that should be easy to do in the normal course of the day, without adding to your workload or stress. You don’t have to be making a New Year’s resolution to take these small steps. You can start on the path to better well-being any time.

Money

Many people aim to “spend less and save more.” But financial wellness is about more than that. It’s also about knowing where you stand, and spending money in a way that you value.

Health

So many people get tripped up on the path to better health because they set lofty goals like “eat healthier” or “exercise more.” These goals are great in theory, but there’s a good reason so few people achieve them: They make it much too easy to fail. So try focusing on small steps toward better health.

Work

If you’re working, chances are your job is the biggest source of stress in your life. That’s ok—stress can be a great motivator. But it’s important not to let workplace stress morph into anxiety. You can feel better about the time you spend at work, and perhaps even do better in your job, if you take care of yourself.

Life

Other common goals—like “practice more self-care” or “find love”—seem aimed at increasing happiness, meaning, and purpose. You may be more successful by taking smaller steps that increase your resilience and foster your social connections.


Sunday Wednesday Thursday Friday Saturday

1 Write down three goals you have in life. (People with goals tend to be happier.)

2 Track your spending for a day, just to see where your money is going.

3 Carve out 30 minutes at the beginning and end of the day to regroup.

4 Drink at least eight 8-ounce glasses of water today.

5 Write down the things you spend money on that you truly value. That’s where you should focus your spending—and your time.

6 Choose a positive mantra for the day— like “I am free to be myself” or “I’m so grateful.”

7 If you have a meeting where you don’t have to be on your computer, make it a walk-and-talk. If the weather isn’t cooperating, walk around the house a bit.

8 No matter how much you exercise, stand up and move around for at least one minute every hour you’re at work.

9 Clean your desk. 10 Think about where you might like to go for vacation. You don’t have to make a down payment, just spend a few minutes fantasy planning.

11 Check your retirement savings balance. Consider increasing your savings by 1%.

12 Go to sleep 30 minutes earlier. (If you don’t sleep well, try making your room cooler and darker.)

13 Automate your savings. Your retirement savings is likely automatic, but you can also make automatic deposits into an emergency savings or vacation savings account.

14 Share three good things that happened today with a friend or partner.

15 If something is worrying you, talk to a colleague with more tenure who can help you put things in perspective.

16 Check your posture. When you’re sitting at your desk, straighten your back and put your feet flat on the floor.

17 Write down three financial goals and post the list somewhere you can see it, so you keep your eye on the ball.

18 If you’re a worrier, try replacing “what if...” with “even if...” when something you’re fretting about crosses your mind.

19 Make a plan to use all your vacation time this year.

20 Take the stairs. 21 Check your credit score. 22 Take a few minutes to research volunteering options. It may seem like you don’t have time, but volunteering has hugely positive emotional benefits.

23 Write a list of the things that are stressing you out and cross off everything you have no control over. Let those things go.

24 Schedule your annual physical. Too early in the year? Put a reminder on your calendar for later in the year.

25 Plan your meals for the week and make just one trip to the grocery store. It will help cut down on impulse buying and decrease your likelihood of ordering out.

26 Ask for help. Whether you are struggling with a decision, need a ride, or just need a hug, reach out when you need someone.

27 Say no. The next time someone asks you to take on something you can’t handle, give yourself permission to politely decline.

28 Make a donation to your favorite charity.

29 Take 2 minutes to close your eyes and focus on your breathing.

30 Stop multitasking and commit to what you’re working on in the moment.

31 Switch out one serving of carbs for an extra serving of veggies.


5 ways to build

HOPEEven in traumatic times, many people remain hopeful, which makes them more likely to maintain good mental health and make better choices.

It goes without saying that this has been a time of stress and anxiety. But it has also been a time of hope, and hopefulness may be key to maintaining good mental health until life returns to something like normal.

In early April, Fidelity asked 1,004 U.S. adults how they were feeling as the coronavirus spread and the nation entered lockdown. Perhaps surprisingly, 41% of res pondents reported feeling hopeful, nearly double the percentage who felt stressed.

Are these people just in denial? No, hope is a very healthy behavior that can, and does, coexist with negative emotions like stress. In fact, this mix is a mark of resilience and tends to result in people feeling better in the long run.

In Fidelity’s crisis survey, hopefulness seems to offset poor mental health during the coronavirus pandemic, even among those who have suffered a health or financial setback. Those who said they felt hopeful were less likely to feel depressed, anxious, and lonely, and more likely to find satisfaction in life. They also were more likely to take action to get the help they need with their health and finances.

People who are hopeful are less likely to be in poor mental health than those who don’t feel hopeful.

% IN POOR MENTAL HEALTH

35%

67%

Hopeful

Not hopeful

AMONG THOSE WITH HEALTH CONCERNS:


5 easy exercises

There is no question this is one of the most difficult times most of us have lived through. But even now, it is possible to cultivate feelings of optimism or hope-fulness. This is not to say you should ignore or brush aside negative feelings, but leave room for hope to coexist with sadness and anxiety.

Research has shown that some simple things can help make you feel more hopeful:

Be kind to yourself and others. It is so easy to beat yourself up right now—you may not be working, and if you are, you may not feel like you’re giving your job or your kids enough attention. Or you’ve gained weight and aren’t exercising. Or you don’t think your house is clean enough. Whatever it is—let it go. Be as kind and understanding to yourself as you are to your family and friends. Remind yourself that you’re doing the best you can, just like everyone else, and that’s ok.

Laugh. Believe it or not, humor has been shown to make people feel more hopeful. So ditch the post- apocalyptic fiction for something light and funny. Take a break from binge watching political dramas and go for comedy instead. Tell some dad jokes around the dinner table. (How does a penguin build its house? Igloos it together! Why did the invisible man turn down the job offer? He couldn’t see himself doing it! Want to hear a joke about construction? I’m still working on it!) Do whatever you can to find a little laughter in a difficult time.

Appreciate the little things. Gratitude is thought to be a key to resilience—the ability to bounce back when something bad happens. At a time when most big things are off the table, it’s more important than ever to bask in small pleasures. Find the things you really enjoy right now and lean into them. Maybe it’s music, game night, or family dinner. Even in the worst of times, it’s possible to look for those moments of pleasure and be grateful. A quick fix: Simply grab a pen and write down 10 things you are grateful for.

Do something for others. We know volunteering has a positive impact on overall well-being, but it may be hard to find ways to volunteer just now. So think about what you can do to help someone else: Can you make masks? Go shopping for an elderly neighbor? Put a sign on your door to thank delivery drivers? Make a charitable donation, or send a gift card to your hair stylist or someone else who can’t work right now? If none of these feels right to you, we have more ideas about volunteering during the pandemic.

Set small, immediate goals. Setting goals can increase your sense of control as well as your connection to the world, two things that can increase optimism. But make sure your goals are within reach, and not something that’s out of your control or might not come to fruition anytime soon, like going to a beach that’s closed. You’ll feel better about your goals if you focus on something smaller and more immediate. Consider goals like trying a new recipe, or reading a book, or finishing that impossible puzzle. Or choose one of the first four ideas in this article and make that your goal for the next week.

People who are hopeful tend to better equip themselves and have their needs met.

Not hopefulHopeful

AMONG THOSE WITH FINANCIAL CONCERNS:

AMONG THOSE WITH HEALTH CONCERNS:

Needs met

Use financial resources

Needs met

Use health resources

50%

59%

49%

67%

45%

54%

27%

45%

Fidelity Investments 2020 Health and Financial Preparation During a Crisis online survey of 1,004 participants using a nationally representative sample. This survey was conducted by a third-party research firm not legally affiliated with Fidelity, March–April 2020.


How to build up your financial immune systemAn unexpected illness can harm more than your health—it can also undermine your financial security. Here’s how you can act now to protect yourself.

If you find yourself battling a health crisis, the last thing you want to have to worry about is money.

Health care expenses lead to almost one-third of hardship withdrawals from retirement savings1, connecting health and wealth in a downward spiral.

Financial worries can turn an already stressful situation into a chronic stressor, and that kind of stress can have serious long-term consequences. Chronic stress can cause symptoms from nausea and headache to insomnia, shortness of breath, and

increased heart rate. It can also lengthen recovery time, exacerbate chronic health conditions, and, ultimately, shorten lifespan.

For all of these reasons, the time to prepare for the financial impact of a health crisis is before it happens. Here’s how.

Insurance

There are different types of insurance that can help you in the event of a health crisis: health insurance, which is meant to pay most of your health care costs, and other policies that can help you pay ordinary living

expenses in addition to health care costs while you’re ill. You can sign up for both types of insurance during your employer’s annual enrollment period.

It’s important to have a level of insurance that gives you confidence that both your health care and financial needs can be met.

Health insuranceWhen the time comes to sign up for health insurance, review all of your options (even if you like your current plan) and choose the one that best suits you in a normal year. Consider how much health care you tend to use and compare all of the yearly costs of your alternatives, including premiums and the amount of costs you will be expected to cover. And make sure your current doctors are in-network before you select


a plan, unless you don’t mind changing providers. Keep an eye out for a plan that you can pair with a

health savings account (HSA). An HSA can help you save for qualified health care expenses and can act as a sort of emergency savings account if you have a health crisis. More on that in a moment.

If you want to consider what would happen in that worst-case scenario, look for the maximum out-of-pocket cost. This is a cap on the amount of money you will have to pay for covered services in a given year, including deductibles, copayments, and coinsurance. After you hit this cap, your health plan pays 100% of the cost of covered services. Note that if a treatment is experimental or isn’t covered for some other reason, it still won’t be paid for.

In the end, the “right” health insurance is the one that gives you peace of mind.

Other types of insurance can help you pay your everyday bills. These polices include:

Disability insuranceThis type of insurance replaces some of your income if you can’t work due to a disabling illness or injury. Many employers offer some amount of short-term and/or long-term disability insurance as an employee benefit, but you also can buy disability insurance on your own. If you are your family’s sole earner, it’s important to at least consider this type of insurance. A good rule of thumb is to have enough disability insurance to replace 70% of your income if you can’t work.

Critical illness, cancer, hospital indemnity, or accident insuranceYour employer may offer insurance that pays out under very specific circumstances, such as hospitalization or a cancer diagnosis. These are sometimes called supple-mental, or gap, insurance policies. While health insurance helps pay for most of the cost of care, one of these other policies would pay you a lump sum you

could use for anything—covering out-of-pocket medical expenses, getting additional help around the house, paying household bills, whatever you need. The amount of benefit you choose is one of the things that drives the cost of the coverage.

A few things to consider about these types of insurance:

• Study these offerings closely if you have a family history of heart attack, stroke, cancer, or other illness, or if you have done genetic testing that indicates you may be at risk.

• The details, including the circumstances under which the policy pays out, vary significantly from one policy to the next. Some only pay out for a narrow range of illnesses, such as cancer, but would not pay out for another serious illness. Look closely at the type of coverage you’re offered and weigh your risks.

• You may not need a policy like this if you have disability insurance to replace a large percentage of your income if you can’t work.

• If you have a substantial emergency fund, this type of extra insurance may not be necessary.

Fight for yourself

A confident health care consumer can both keep their costs down and get the most out of their health insurance. If you need help with this, many employers offer some kind of patient advocacy benefit, which can help you navigate the system. These advocates will help you find the care you need, navigate the system and your insurance, and help you with billing. This is one of those workplace benefits you should get familiar with now, before you have an urgent need.

Savings

Perhaps the best way to protect your financial health is to make sure you have enough savings set aside for just this sort of emergency.

Emergency fundFidelity suggests having 3–6 months of expenses socked away for use in case of a major emergency—think health crisis or job loss, rather than car trouble. How much do you need? If you’re single but have family backup, you might be comfortable with 3


months of savings. However, if you have a spouse, kids, and a mortgage or if you worry about replacing a lost job or other income quickly, you might feel better with 6 months or even more. Make your savings automatic through direct deposit if you can, and try to save in an account that pays some interest but is still readily available if you need it.

Health savings accountYou may think of your HSA as a way to pay current qualified health expenses and get a tax break, and that’s true. But it also can act as a savings account for health emergencies. Money you contribute tax-free2 to an HSA carries over from year to year, allowing you to accumulate significant savings in case of large health expenses. You may even be able to invest the money to help it grow. When you withdraw the money to pay for qualified medical expenses—whether it’s 5 years from now or 25—it is also tax-free.

Borrowing

In some cases, borrowing to pay for an emergency may be necessary if you don’t have financial reserves to cover it. You can prepare in advance for that, too.

If you own a home, it can be good strategy to open a line of credit on your house to give you a backup source of funds at a low interest rate. (This can also come in handy in all kinds of situations that aren’t health-related.) Your payment is based on how much you’ve borrowed at any given point in time, as well as your current interest rate, so shop around to get the lowest rate.

Note that it’s extremely important to consider the potential consequences of borrowing against your home. There may be financial, legal, tax, and estate implications. If you default on the loan, you could even lose your home.

If you’re caught unprepared

If you haven’t planned ahead, your options are more limited, but you should do everything you can to avoid toxic debt like high-interest credit cards or, worse, payday loans. This type of debt can be extraordinarily stressful, on top of everything else you’re dealing with. But you do have some options:

• Talk with your health care provider. Be honest about your situation. You may be able to negotiate a lower cost and/or request a payment plan to give you more time to pay.

• You may still be able to open a home equity line of credit on your home or consider refinancing. If you have substantial equity, you might consider a cash-out refinance. You can potentially lower the interest rate on your loan and gain access to a substantial amount of cash, assuming you feel good about your ability to keep up on the payments.

• Finally, if you have a retirement account at work, such as a 401(k) or 403(b), you may be able to borrow from it as a last resort, if you feel confident you will be able to pay it back. Taking a loan is preferable to taking a hardship withdrawal, which can seriously impact your ability to retire with confidence. Check with your workplace savings plan provider to see what options are available to you.

The bottom line

Planning ahead is key. If you’re diligent about saving for emergencies, bolster your savings with insurance, and keep some low-interest credit available as a last resort, you’ll be more financially prepared for a health emergency. And that knowledge can help keep a stressful situation from becoming even worse.

1 Fidelity Investments recordkept data as of 12/31/2019, eCertified participant web entries.

2 With respect to federal taxation only. Contributions, investment earnings, and distributions may or may not be subject to state taxation.

Are you ready for the cost of health care in retirement?

38% are doing well saving for health care in retirement1

Health care is one of the biggest expenses for retirees. The average couple retiring in 2020 will spend $295,000 on health care costs in retirement.2 This includes Medicare premiums, prescriptions, and other out-of-pocket costs. It’s important to be aware how much of your retirement income health expenses will consume, and be prepared. If you have access to a health savings account, that can be a great vehicle to build savings for the long term in a tax-advantaged way.

1Fidelity Investments Health Framework Research online survey of 5,014 employees. The survey was conducted by Greenwald and Associates, an independent third-party research firm on behalf of Fidelity from February 20–March 5, 2020. 2Fidelity Benefits Consulting estimate, 2020.


5 reasons to call your EAPAlmost all large employers offer an Employee Assistance Program (EAP). But you may not know what your EAP can do for you.Emotional health

Top EAP concerns

42%

35%Family

Stress (16%)Anxiety (14%)Depression (12%)

Marital (16%)Child behavior (10%)Grief (5%)Extended family (4%)

Work 7%

Legal 6%

Other 6%

Substance abuse (3%)

Source: Chestnut Global Partners 2017 Trends Report

Does not add up to 100 due to rounding.

Employee Assistance Programs are almost as ubiqui-tous as health insurance among employer benefits— but, unlike health insurance, very few people use them.

That may be because many people associate EAPs with substance abuse or mental health emergencies or are afraid of carrying a negative stigma for needing behavioral health support. While 24/7 counseling is certainly one of the most important things an EAP offers, these programs increasingly are expanding into all kinds of other areas that can help your overall well-being.

While the services EAPs offer vary widely from one employer to another, there is one important thing all EAPs have in common: Calling is anonymous. While aggregate data is reported back to your employer, no names are attached. So, whether you’re calling about substance abuse or how to deal with your boss, this will not get back to your employer.

It’s worth checking out your employer’s EAP to find out what’s available to you. Here are five things you may not be aware of that your employer EAP may be able to provide you support:

1. Stress

Work is stressful. Family life and finances can be too. Whatever is stressing you out, your EAP can help. If finding a therapist or counselor seems like a bridge too far, you can always find someone to talk to at your EAP. A trained counselor can help you address a specific stressful situation—such as a conflict with a co-worker—and make a plan to address it. You also can get help with some of the side-effects of stress, such as lost sleep. You typically get a limited number of counseling sessions at no cost, and if need be, you can get a referral for further treatment.

2. Work-life balance

Time is a precious commodity, and your EAP may actually be able to give you some of it back. Many EAPs are available to help you find a range of personal services—dog walkers, plumbers, lawn care, home improvement contractors. Some even include con-cierge services that can help you plan a vacation. This kind of help can be especially valuable when you’re relocating and you need to line up a whole new cadre of service providers.


3. Legal consultation

If you have simple legal needs, you may be able to get them taken care of with one phone call to your EAP. If you need help drawing up an uncomplicated will or reviewing a document, or if you need a lawyer to make a phone call on your behalf, a brief consultation may be all you need. For more complicated needs, you can get help finding a local lawyer—and you may even get a discount on the attorney’s hourly rate. (If your issue is employment-related, you will likely not be able to go to your EAP for help with that.)

4. Making a financial plan

Many EAPs offer a free phone consultation on financial issues. If you’re just starting out, you may need help creating your first budget or figuring out how to start saving for retirement. If your kids are getting older, perhaps you’re thinking about saving for their college education. And if you’re further along in your career, you may want some outside perspective on the transition to retirement. Your EAP may be able to offer help on these issues, and more.

5. Identity theft

Concerned about preventing identify theft? Have you been a victim? You may be able to get expert advice on steps you can take to either prevent or recover from identity theft. Similarly, you can get a brief consultation with a network attorney if you have legal concerns regarding ID theft, or a range of other issues.

This information is intended to be educational and is not tailored to the needs of any specific individual.


In praise of lower standardsYou can take a small step toward better well-being just by setting more attainable goals.

Did your friends spend most of 2020 baking sourdough bread? Turning the backyard into a farm, growing a bumper crop of vegetables or raising chickens for their eggs? Training for a marathon?

If you believe what you see on social media, a lot of people have spent their time at home during the pandemic living their best lives. Meanwhile, you’re just trying to get through the day without screaming at your kids.

How can you be happy at a time like this? The key may lie in lowering your expectations. Maybe it’s okay for today’s goal to be “don’t scream at the kids.”

Research shows that the people who are happiest have the smallest gap between what they want and what they have. Most people figure out what they want and go for it. Rarely do we hear that we should give up, settle, or change what it is we want.

But how realistic is it to hold steadfast to lofty goals while we need to limit our activities for the sake of our health and the health of our neighbors?

If what you want right now is a trip to an exotic island, you are not going to be happy with a long weekend at a quiet nearby beach. But if what you want is a change of scenery and a break from house-hold chores, that beach trip is likely to make you plenty happy.

“It’s often the people who are constantly striving for ‘the sky’s the limit’ who wind up depressed or anxious,” said Tamara Sims, director of behavioral sciences for Fidelity Investments’ Health Solutions business. “Part of it is reevaluating and redefining what you’re trying to get out of each day and not limiting yourself to the unreasonable or unsustainable.


“It’s okay to want to be happy,” she said. “But if you expect to be intensely happy all the time, it becomes like a drug and you want more and more and more, and it’s never enough. You can never be happy enough.”

This is not to say you should not have high expecta-tions for yourself or set lofty goals. But when you find yourself struggling—as so many people are just now—it may be better to set those aside in favor of simpler, more attainable, goals.

Family

This time has given rise to a lot of things—boredom, anxiety, stir-craziness, sadness, even grief for all the things we’ve lost. Wanting a peaceful home all the time just might not be possible right now, especially if you have teenagers who are also struggling with all this uncertainty along with all the things they’ve lost during the past several months. Perhaps it’s enough to have only one or two cranky people at home at any given time. Or your goal could be a peaceful family dinner tonight.

Fitness

Sure, plenty of people have started ambitious new exercise routines during lockdown, but ambition might be too much to ask of yourself right now. So instead of training for a marathon, just go for a walk. Instead of trying to carve out an hour for yoga, find a 15-minute routine on a streaming service. Do some heavy cleaning around the house—a sure-fire calorie burner. Or play hide-and-seek with your kids for 30 minutes. That’s exercise, too. Or, set a goal to do three different activities this month—whatever activities suit you.

Time for a check-inHow do you stack up in the gap between where you are and where you want to be? In each category, give yourself a score: Poor = 1, Okay = 2, and Great = 3. Then calculate the difference.

Family

Fitness

Finances

Recreation

Nutrition

Work

HOW YOU FEEL YOUARE DOING (1–3)

HOW YOU WANTTO BE DOING (1–3)

DIFFERENCE

All positive numbers: You are doing better than expected! Great job! Time to start expanding on or setting up new goals.

Mostly zeroes: You are on target. Enjoy this time and the fact that you have managed to calibrate how you spend your time with what means the most to you.

Mostly negative numbers: You are doing worse than you want to feel. There are two ways to calibrate. The popular but not necessarily most effective option is to work even harder, pushing yourself to reach the level you want. The other option that is especially attractive now is to give yourself a break! Sometimes it’s perfectly fine to aim for “Okay.” Recalculate your score with these new goals and see how things add up—if you’re closer to zero, then you’ve already achieved enough to feel happy about!


Finances

It is painfully easy to set unattainable financial goals, especially now. With so many people out of work, and the uncertainty around how fast or slow recovery will be, it’s harder than usual to set and reach financial goals. Two common money-related goals are spending less and saving more. These are pretty vague and potentially out of reach in the current economy. Instead, consider starting by understanding where your money is going right now. Many people are spending more on groceries but much less on eating out, more on streaming services but less on entertainment out of the house (no movies, concerts, or sporting events). Just knowing where your money is going is a good place to start.

Recreation

Spring break is time for vacation, but what does that look like this year? If you haven’t planned your vacation yet, think about what you most enjoy about vacation. What makes you happiest? Not so much where you would go, but what aspect of a trip do you find most

fulfilling. Is it a change of scenery? Lack of chores or not having to cook? The opportunity to spend stress-free time with family or finally making a dent in that stack of books you’ve been meaning to read? Even if you’re planning a staycation, you can find ways to meet those modest goals.

Nutrition

You’ve probably heard the jokes about the “COVID-15,” akin to the freshman-15. A lot of people stuck at home turned to comfort food or takeout (and, hey, takeout supports local businesses!). Setting a goal of losing your quarantine weight is great, but if that’s stressing you out, you might be happier with a more attainable goal, like drinking more water, or eating more vegeta-bles. Remember, feeling good about yourself is all about having the smallest gap between what you want and what you can accomplish.

Work

You may not equate work with happiness, but you spend a lot of time at your job, so it makes sense to recalibrate your goals in this area as well. If the only thing that will make you happy is getting that promotion you’ve been focused on, you may never be happy, because even if you get to the next level, there will be another level after that. Instead, consider what would make you a star employee and attack those things one at a time. This may start with simply setting and communicating your career development goals, learning new skills, or supporting and lifting up your colleagues. If you simply want to get more joy out of your day, consider what part of your work you enjoy most and try to spend more time doing that. Bonus: All of those things could help you achieve your more ambitious goals.

Sleep on this...

56%of people don’t wake up well-rested

You hear a lot about getting 7 or 8 hours of sleep a night, but it turns out the quality of the sleep you get is more important than the quantity. How can you sleep better at night? The Centers for Disease Control and Prevention offers some tips:

• Go to bed and get up at the same time every day, even on weekends.

• Make sure your bedroom is quiet, dark, and at a comfortable temperature.

• Keep electronic devices, including TV and phones, out of the bedroom.

• Avoid large meals, caffeine, and alcohol before bedtime.

• Get some exercise during the day.

Fidelity Investments Health Framework Research online survey of 5,014 employees. The survey was conducted by Greenwald and Associates, an independent third-party research firm on behalf of Fidelity from February 20–March 5, 2020.


The first year in an HSASwitching to a new health plan with a health savings account this year? If you know what to expect the first year, the transition may be a lot less daunting.

Meet the Santos family

Andrea and Matt liked their traditional health plan just fine, but a couple of Andrea’s friends at work told her how much they loved the Health Savings Account they got when they chose the HSA-eligible health plan.

After giving their options a lot of thought during annual enrollment, several things made them switch to the HSA-eligible health plan:

• The premiums were considerably lower than their traditional health plan, and the $3,000 family deductible wasn’t too high.

• They have minimal health care needs in a normal year, and their doctors were still in their network.

• Andrea’s employer would make a $1,000 lump-sum contribution to the HSA at the start of the year.

• They liked the tax advantages of the HSA—the money Andrea contributes is tax-free, it can grow tax-free, and withdrawals for qualified medical expenses also are tax-free.1

Does their first year in the plan go as planned? Let’s follow along and find out.

The Santos family is a hypothetical example. Please see “Important information” on page 21.

Andrea (42)Gets her family’s health insurance through the job she loves.

Matt (45)Has an extremely stressful job and takes medication for high blood pressure and cholesterol.

Sofia (10)Is a laid-back, bookish kid, prone to the occasional ear infection.

Nicholas (8)Is a bit of a daredevil, which naturally worries his parents.


January

Happy New Year! As Andrea and Matt enjoy one last day off for the holidays, Andrea’s employer gets her HSA off to a running start with a $1,000 contribution (about average for family coverage2). Andrea gets a lump sum deposited in her account, which gives her a certain sense of comfort as the year begins, but some employers make monthly contributions instead.

Andrea starts out contributing $250 a month, knowing she and Matt can decide to increase her contribution during the year if they want to.

The first expense is refilling Matt’s prescriptions. In the spirit of being more aware of their health care spending, Matt and Andrea make sure they review all their options for filling the prescriptions and find that switching from a name-brand to a generic option for both medi cations will save hundreds of dollars.

Starting balance: $1,000 HSA spending this month: $110

A $250 HSA contribution doesn’t mean $250 less in take-home pay. The tax savings softens the impact:3

Contribution $250.00 $350.00 $590.00

Taxes saved $86.63 $121.28 $204.44

Paycheck decrease

$163.37 $228.72 $385.56

Assumes 22% federal tax rate; 5% state tax rate; and 7.65% FICA taxes.

February

The family takes a ski trip and—uh-oh!—their little daredevil Nicholas breaks his arm. Thankfully, it’s a simple break. But with an urgent care visit, X-rays and getting the arm set in a cast, the bill still hits $2,600. Since the family’s deductible is $3,000, that means they’ll have to pay the bill themselves.

But Andrea and Matt are still thankful—if the accident had required an ambulance or surgery, the bill could have been much higher.

At this point, there is only a little over $1,000 in Andrea’s HSA—and she doesn’t want to put the payment on a credit card. So Andrea and Matt work out a payment plan: $435 a month for six months.

At the same time, they decide to increase Andrea’s contribution to her HSA by $100 a month starting in March.

HSA spending this month: $435

March

Andrea comes down with a sinus infection—more of an annoyance than anything else. Since this is pretty common for her, she opts for a telemedicine appoint-ment, which saves her quite a bit of money and time. Since the total cost is $60 for the telemedicine visit and prescription, she decides to put this one on the credit card and pay it off when the bill comes. It still counts toward her deductible, but she’d rather save the money in her HSA, just in case anything else happens later in the year.



April

It’s spring break, and the family is hitting the beach to get away and warm up. Matt needs a break from the stress of work, and everyone else could use a week of R&R too. Andrea pays cash for the “just in case” motion sickness medicine she picks up at the drugstore on the way to the ship, but she could have used her HSA to pay for it. Over-the-counter medications are considered qualified medical expenses, even without a prescription.


May

The school year is coming to a close, so Matt and Andrea take some time to plan for the coming summer— what camps the kids want to attend, when they’ll take their annual summer staycation, and when they can all get their physicals. Summer comes and goes so quickly, everyone wants to make sure they take the time to savor it.


June

School’s out, but Nicholas is getting ready for his first football camp this summer, which requires a doctor’s note. They schedule a complete physical so he won’t have to go back again before school starts. Luckily, that’s considered preventive care, so there’s no cost for the doctor visit. While they’re there, mom makes an appointment for the rest of the family to get physicals later in the summer.



July

It’s time for summer staycation. Matt and Andrea both like to take a week off in the summer just to spend time with the kids and get away from work stress. They know it’s good for their health—just like following a healthy diet and getting enough exercise.

They also make their last payment on the broken arm—now healed and paid off, too.


August

It’s physical time for Andrea, Matt, and Sofia before the kids head back to school and everyone’s lives get crazy again. While they’re at it, all four of them get flu shots.


September

Poor Sofia. No sooner is she back in school than she comes down with an ear infection. This one is bad enough to skip the telemedicine and head for the primary care doctor, who is familiar with Sofia’s history of ear infections. It also means a prescription. But because they hit their deductible this month, they will only pay coinsurance—20% of the cost for the office visit and prescription.



October

It’s time for everyone to visit the dentist. Andrea and Matt enrolled in dental insurance this year, so everyone’s checkups are covered. But this time the conversation turns to braces for Nicholas. Knowing the cost and treatment plan ahead of time will help Andrea and Matt decide how much to contribute to Andrea’s HSA next year—but also whether they want to fund a Limited-Purpose Flexible Spending Account (LPFSA). The LPFSA contribution is pretax just like an HSA; but unlike an HSA, it generally requires the money to be spent within the year.4


October is Breast Cancer Awareness month, so Andrea gets a mammogram—another preventive service at no cost.

November

It’s time for annual enrollment again. This time last year, Andrea and Matt decided to take the plunge on an HSA-eligible health plan and see how it would go.

Even after Nicholas’s broken arm in February, they feel pretty good about things—they get their preven-tive care at low or no cost, and that accounts for most of their needs in a normal year.

They’re going to stick with the HSA-eligible health plan, and even increase Andrea’s HSA contribution to the annual maximum. They’ve decided to redirect the additional money from Andrea’s 401(k), knowing she will still get her full company match, and they can save the money or invest in the HSA for qualified medical expenses in retirement.


December

As the year comes to a close, Andrea and Matt are happy with where they ended up. They have almost $2,000 to carry over to next year. With her employer’s $1,000 contribution at the beginning of next year, they will have their deductible almost covered.

That has them thinking about what to do with the money in the account as it grows. They know it can be invested, just like any other brokerage account. But they also know they want to keep about $1,000 in cash, assuming they will spend that much on qualified medical expenses in a given year. So they’ve decided to invest any money over $1,000, knowing they can change the amount invested at any time. They plan to choose an investment they’re comfortable with—something that gives them an opportunity for growth but isn’t too risky for their comfort level.

They’re feeling good about their decision a year ago and are ready to celebrate a new year.



Ready to enroll in an HSA-eligible health plan and open an HSA?

Here are a few resolutions to help make your first year in the plan successful.

• Open your HSA, if you need to, so you will be sure to get your employer contribution.

• Keep in mind you can adjust the amount you contribute to your HSA any time. You don’t need to wait for annual enrollment to come around again.

• Know what services are available to you to help manage your costs. You may have telemedicine options or access to online service that helps you manage your expenses, payments, claims, and receipts all in one place, on any device.

• Think about the future. You can save the money in your HSA until you really need it—including all the way into retirement. If you’re thinking long term, consider investing some of your HSA balance to make it work harder for you.

The Santos family’s balance sheet

Here’s how Andrea’s HSA balance ebbed and flowed throughout the year. This infographic shows monthly contributions and spending. Her HSA balance ebbs as she pays off her medical bills early in the year, but climbs quickly when she no longer has those bills. Starting balance at the end of January for the chart is $1,140.

$2,000

$1,500

$1,000

$500

- $500

Total balance

$1,000 employer contribution Monthly spending

Andrea’s monthly contribution

JAN. DEC.$250

- $110

- $435 - $435- $545 - $545

- $60 - $22

- $435 - $435

$250$350 $350 $350 $350 $350 $350 $350 $350 $350

$1,978

$350

Important information

This hypothetical example is based on the following assumptions:

• The family’s deductible is $3,000, lower than average for family coverage. The minimum deductible for a family plan to qualify as an HSA-eligible health plan is $2,800 in 2021. The average annual deductible for family coverage in 2018 was $4,883, according to the Kaiser Family Foundation 2018 Employer Health Benefits Survey, the most recent data available.

• The plan counts prescription costs toward the deductible. Some plans only count prescription costs toward the out-of-pocket maximum for the year.

• The employer contribution of $1,000 is similar to the average employer HSA contribution for family coverage of $1,073, according to the Kaiser Family Foundation survey. This average includes firms that make no contribution to the HSA; when those firms are excluded, the average rises to $1,406 for family coverage.

• Total spending of about $3,000 is greater than average, based on the 2018 Consumer Expenditures Survey (CEX) from the Bureau of Labor Statistics, the most recent survey available.

• Investment returns on the HSA balance are assumed to be zero.

1Contributions, earnings, and distributions are tax-free for federal tax purposes when used to pay for qualified medical expenses. Each state may decide to follow the federal tax guidelines for HSAs or establish its own. As of the publication date (10/15/2019), only California and New Jersey tax eligible contributions to HSAs. These states regard HSAs as regular taxable brokerage accounts, so residents have to declare any capital gains, interest, and dividends they receive to the state. New Hampshire and Tennessee tax earnings but not contributions. 2The average employer HSA contribution for family coverage was $1,073 in 2018, according to the Kaiser Family Foundation survey.

3Savings calculation is based on the following tax rates: 22% federal tax rate; 5% state taxes (in a state where HSA contributions are tax-deductible); and 7.65% FICA taxes. Monthly premium savings are based on the difference between the average employee premium paid for traditional plans ($5,925) vs. HDHP plans with an HSA option ($4,626), according to the Kaiser Family Foundation’s 2018 Employer Health Benefits Survey.4While LPFSA funds are “use it or lose it,” there are some limited exceptions. Employers may choose to allow employees to use the money within the first 2-1/2 months of the following year, or carry over up to $500.

Investing involves risk, including risk of loss.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

$1,200Aug.

$1,000Jul.

$1,000May

$800Apr.

$600Mar.

$400Feb.

January 1st opened emergency

fund with $200.

ADD $200 EACH MONTH

December emergency fund

balance

$1,900

Salary increaseIncreased 401(k)

contribution by 1%

Unexpected car expense- $400

Bike accident

- $100

Hit goal of one month’s expenses

and keeps going to save an additional

month’s

$800Jun.

$1,400Sep.

$1,500Oct.

$1,700Nov.

$1,900Dec.

THE UPS AND DOWNS OF SAVING

A year in the life of emergency savingsAre you prepared if you need to access money fast without hurting your long-term savings goals? For example, the current pandemic has caused 1 in 5 people to consider taking a loan or a withdrawal from their retirement savings plan.* Fidelity recommends aiming to save 3–6 months of essential expenses in an emergency savings account. While this may seem like a lot, you can set more manageable goals for yourself by aiming to save enough to cover one month of your essential expenses, like our friend Sid.

Sid has two financial goals this year:• Save one month of essential expenses ($1,500)• Increase 401(k) contributions by 1% annually

Sid’s scenario:• Annual salary: $50,000 • Monthly essential expenses: $1,500• 401(k) contribution: 3% (and receiving 3% employer match)• Emergency savings: $200 per month

Are you ready to get started?Here are some simple steps to think about:

• Understand your spending so you can make saving for unexpected expenses a priority

• Open an emergency savings account and set up a direct deposit every month from your paycheck

• Once you meet your short-term goals focus on longer-term goals like increasing contributions to your retirement savings

Hypothetical example for illustrative purposes only. Balances represent amounts at the end of the month. Deposits and emergency withdrawals are assumed to happen during the month. No taxes, fees, or interest are included.

Investing involves risk, including risk of loss.

*Fidelity Investments Market Uncertainty Study, April 2020, a nationwide survey of 1.6k adults 18 years of age or older with at least one investment account. This analysis is based on 716 working adults with a workplace retirement savings plan. The study was fielded from April 1–8, 2020 by ENGINE INSIGHTS, an independent research firm not affiliated with Fidelity Investments.

The results of this survey may not be representative of all adults meeting the same criteria as those surveyed for this study.

Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI 02917

© 2020 FMR LLC. All rights reserved.

956672.1.0

31 days to better well-being5 ways to build hopeHow to build up your financial immune system5 reasons to call your EAPIn praise of lower standardsThe first year in an HSA

FIDELITY’S WINTER 2021 A healthier, happier 2021 · 2020. 12. 16. · FIDELITY’S PULSE ON...

Documents

Transcript of FIDELITY’S WINTER 2021 A healthier, happier 2021 · 2020. 12. 16. · FIDELITY’S PULSE ON...