As the cost of living continues to outpace wages, employers are scrambling to build financial wellness benefits that actually benefit their employees’ pockets. Are lifestyle saving accounts the answer?
A lifestyle saving account, or LSA, is a set of funds employers provide their employees for just about any caregiving, wellness or work-related need. While LSAs do have the same tax benefits as other savings accounts (LSAs are taxable income), this benefit essentially acts as a catch-all for employees’ wide range of financial needs — and they’re growing in popularity. According to benefits and advisory firm WTW, just 7% of employers currently have LSAs in their benefits package, but 38% of employers either plan to offer LSAs by 2025 or are considering it.
