As working arrangements continue to evolve, employers are reevaluating how to meet their employees' wellbeing needs and attract and retain talent with competitive benefits. One benefit that a growing number of employers are expressing interest in is the Lifestyle Savings Account (LSA). In fact, data from WTW's 2023 Best Practices in Healthcare Survey found while 7% of employers currently offer LSAs, another 38% are either planning to offer them (7%) or considering adding LSAs by 2025 (31%).

LSAs are unique because they offer flexibility – both to the employer as well as the employee. Employers are free to design the LSA benefit as they wish, without the rules and restrictions typically associated with other more common account-based benefits, including who is eligible for the LSA, the level of reimbursement, and how the funds can be used. Many LSAs are designed to support employees' physical, emotional and financial wellbeing but may also cover items such as home office and technology needs or family planning and support. Employees have flexibility to purchase the items or services that best meet their needs for how they live and work, allowing individuals to truly personalize their benefits. Moreover, employers with diversity, equity and inclusion goals may find LSAs very attractive since they can provide benefits to individuals or populations that are not met as well by other benefit programs.