The intended purpose of an HSA is to allow you to pay for medical expenses tax-free. Additionally, an HSA allows you to invest money in stocks or other funds, similar to how you would invest money in a 401k or individual retirement account (IRA). That money is then available to use for qualified medical expenses.
Using an HSA to fund retirement is a personal decision. While this is not financial advice if you want to consider doing the same, here are the steps you’d want to follow.
Determine if your employer offers an HSA option and enroll if available. If you are self-employed, there are also options as long as you are enrolled in an HSA-compatible health plan.
Fund your HSA account. The maximum annual contribution for 2021 is $7,200 and will likely increase slightly every year or two.
Pay medical expenses out of pocket and invest your HSA funds. This is the key if you want long-term compound growth in your HSA. My HSA is currently invested in a low-fee S&P 500 index fund. Make sure you take the time to invest your HSA money, or else it will sit in a regular account and not accrue any interest.