With an expanding list of eligible expenses, more employers are tapping into Lifestyle Spending Accounts (LSAs) as a way to promote overall well-being among their workforces.
LSAs offer a fully customizable, post-tax benefit that empowers employees to prioritize their physical, emotional, and financial health. From gym memberships and fitness classes to nutritional counseling and even camping supplies, LSAs provide employees with a broad spectrum of choices to invest in their well-being. This flexibility allows employees to align their benefits with their individual goals and interests.
But what’s the best way to get started?
Designing an effective LSA involves answering four key questions:
- What behaviors do you want to influence?
- What do your employees value?
- How can LSAs align with your company values?
- What existing benefits can be integrated into the program?
LSAs have an average contribution of $747 per participant and the top spending categories are physical wellness (51.84%), financial wellness (9.02%), nutrition (6.68%), and travel (6%).
LSAs represent a shift to empowering employees to take control of their well-being and in turn promote healthier, happier, and more engaged workforces. As the list of eligible expenses continues to grow, LSAs are poised to become a cornerstone of modern employee benefits programs.
Want more information on administration services for Lifestyle Spending Accounts? Contact your Custom Design Benefits Account Manager.