When it comes to preparing for retirement, it’s not what you make, it’s what you save.

One of the best ways to bolster retirement savings is through a Health Savings Account (HSA). These accounts are available in conjunction with an HSA-compatible, high-deductible health insurance plan.

That mouthful refers to an option available from some employers as well as a small number available through state health-care exchanges or privately from insurance companies.

It may seem counter-intuitive to think of an account for health spending as a retirement resource. But health care looms as a huge expense for most retirees. According to Fidelity Investments’ 16th annual retiree health-care cost estimate, released in April, the average couple age 65 in 2018 will need about $280,000 (after tax) just to cover health-care expenses in retirement.

Having an account set aside to help pay these expenses could help, especially since the cost of medical care is expected to increase much faster than the general cost of living.

For the clients I serve, mainly in Brooklyn and the rest of the New York metropolitan area, I assume general inflation of 3 percent and medical inflation of 5 percent in my retirement plans. Over time, that added inflation makes a very substantial demand on a retirement portfolio.

Saving in an HSA is more advantageous than saving in a 401(k) or IRA. Money contributed to an HSA is deducted from your taxable income even if you don’t itemize. Money coming out of an HSA is tax-free if used for qualified medical expenses. It’s like having the best features of a Roth IRA and a Traditional IRA.

To take full advantage of this benefit, you will need a plan that allows you to invest the money in mutual funds. (You should remain conservatively invested if you may need to draw on them in the next few years.)

Of course, an HSA does not replace ordinary retirement savings, which are needed for non-healthcare expenses. But it can provide a great supplement; it may be especially attractive for high-earners who have maxed out contributions to other retirement plans.

The maximum that can be contributed to an HSA in 2019 is $3,500 for an individual and $7,000 for a family.

Compared with a standard plan, premiums are typically lower but deductibles are higher.  Employers may make the high-deductible option more attractive by contributing to an HSA on behalf of their employees.

High-deductible health plans in 2019 require a minimum deductible of $1,350 for an individual and $2,700 for a family. Maximum out-of-pocket expenses (not including premiums) are $6,750 for an individual and $13,500 for a family. (Side point here – but a big caveat – is that out-of-network expenses do not apply toward the out-of-pocket maximum in any health plans.)

All in all, an HSA can be a great way to keep your finances healthy in retirement.