Short answer: Yes. An HSA can double as a powerful retirement tool. After age 65 you can withdraw funds for any purpose without penalty (paying only ordinary income tax on non-medical withdrawals), while medical withdrawals stay tax-free at any age.
The HSA’s triple tax advantage; pre-tax contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses, also makes it an excellent retirement vehicle. Many savers invest their HSA, pay current medical bills out of pocket, and let the account grow for retirement healthcare costs (which are substantial). After 65, non-medical withdrawals are allowed without the 20% penalty and are simply taxed as ordinary income, like a traditional IRA, while medical withdrawals remain entirely tax-free. You can also reimburse yourself in retirement for old medical expenses you paid out of pocket, as long as you kept the receipts.