Total health savings account (HSA) assets grew to nearly $147 billion across more than 39 million accounts, reports the latest analysis by HSA investment solutions and research firm Devenir.
The organization released its 2024 Year-End HSA survey, showing that HSA assets saw a year-over-year increase of 19% of assets and 5% for accounts due to positive market returns and growing interest over the plan benefit. During 2024, HSA investment assets grew by 38%, reaching 64 billion by year-end.
“The sustained growth in both assets and participation demonstrates a growing awareness among consumers and employers of HSAs’ long-term value in managing healthcare costs,” said Jon Robb, senior vice president of Research and Technology at Devenir.
Further, Devenir’s report found that the number of HSA holders investing in the benefit continues to rise. According to findings, approximately 3.5 million HSAs, representing about 9% of all accounts, had invested a portion of their HSA dollars.HSA holders contributed close to $56 billion to their accounts in 2024, up 11% from the prior year.
Looking to the future, Devenir forecasts growth to reach over 45 million accounts and approximately $199 billion in total assets by the end of 2027.
The latest findings come as more employers list health insurance benefits as the most important feature for recruitment and retention in the workforce. An analysis by employee benefits and HSA provider Lively found that higher account balances in the beginning of January, at $4,923, compared to the industry average of $3,639.
Lively’s latest research supports key findings reported last year by the organization. It’s 2024 Employee Benefits Pulse Check study found that 64% of human resource (HR) leaders expect health insurance costs to rise between 10% to 35% within the next year, and 80% believe that offering a competitive financial benefit is more important compared to a year ago.
SEE ALSO:
Health Savings Accounts: By the Numbers
Lively Reports 35% Surge in HSA Balances
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.