HSA accounts: Number and size show impressive growth so far this year
Devenir projects that the HSA market will exceed 36 million accounts by the end of 2023, holding more than $131 billion in assets.
Nearly $93 billion was saved in more than 31 million health savings accounts as of mid-2021.
“An increasing awareness of the role HSAs can play in planning for retirement health care costs and a strong stock market led to HSA investment assets soaring higher, with more than two million accounts holding over $30 billion in invested assets at the 2021 midyear point,” said Jon Robb, senior vice president of research and technology at Devenir.
Devenir, an HSA solutions provider, recently conducted its semiannual HSA survey. Key findings include:
Strong HSA asset growth. Led by strong investment growth, HSAs grew to $92.9 billion in assets held in more than 31 million accounts, a year-over-year increase of 26 percent for assets and 6 percent for HSAs for the period ending June 30.
HSA investment asset growth doesn’t slow. Fueled by continued strong market gains, HSA investment assets soared to an estimated $30.4 billion at the end of June, up 73 percent year-over-year. On average, investment account holders hold a $17,954 total balance.
Interest in HSA investing continues to grow. There are now nearly two million accounts that are investing a portion of their HSA dollars, representing more than 6 percent of all accounts.
HSA contribution and withdrawal growth is flat. Account holders contributed almost $24 billion to their accounts in the first half of 2021 (up 1 percent from the previous year) and withdrew more than $16 billion from their accounts (down 1 percent).
Devenir projects that the HSA market will exceed 36 million accounts by the end of 2023, holding more than $131 billion in assets.
One-third of all HSA dollars contributed to an account so far this year have come from employers. The average employer contribution was $658. Fifty-five percent has come from employees, with an average contribution of $1,184. An additional 11 percent has come from an individual account not associated with an employer. The average individual contribution was $1,762.
HSA providers project HSA industry asset growth of 14 percent in 2021 (down from 16 percent at the end of 2020), while anticipating their own business will grow by 20 percent during the same period (down from 23 percent at the end of 2020).
“Historically, HSA providers have been fairly accurate with their growth forecasts, demonstrating an impressive understanding of the outlook for their book of business,” the survey report concluded.
“However, in both 2020 and 2019, HSA providers significantly underestimated HSA market asset growth. Devenir currently projects that the HSA market will exceed 36 million accounts by the end of 2023, holding more than $131 billion in assets.”
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