Despite assets growing to nearly $147 billion in 2024, only a small number of participants funded their health savings accounts (HSAs) within the past year.
According to HSA Bank’s 2025 Health & Wealth Index, just 10% of employees funded an HSA or invested in HSA funds. The dwindled number presents an opportunity for plan sponsors and retirement plan advisors to offer education and accessibility on the product, HSA Bank reports. While 61% of employees say their employer offers a 401(k), 36% say their company provides an HSA and 21% admit their plan sponsor offers a flexible spending account (FSA) or limited purpose FSA (LP-FSA). Further, 12% offer a health reimbursement arrangement (HRA).
Still, just 25% of employees strongly agree their employer provides education and resources that enable them to invest in their HSA.
“A key takeaway from this year’s Health & Wealth Index proves employees are engaged in their health and wealth, but they’re also feeling unprepared when they consider future medical costs and retirement,” said Chad Wilkins, president of HSA Bank. “As employer benefit programs change and employee needs shift, employers have a critical opportunity to provide benefits and educational information that meet their current and long-term needs.”
Those who utilize an HSA mainly use the feature to pay for appointment copays and doctors office visits (at about one-half of employees), while others pay for short-term expenses with their HSAs (39%). Forty percent of accountholders pay for long-term healthcare expenses with their HSA, and 20% use it as an investment tool.
With engagement comes demand
Employees are engaging more with their health and finances, HSA Bank reports. Within the past year, 85% of employees say they’ve made “conscious lifestyle changes” to improve their physical health, and 84% of Gen Zers have paid off debt, funded an emergency savings account, and have invested.
As a result, employees increasingly look to their company for improved benefit offerings. If their employers cannot provide those benefits, many are choosing to leave to a different company instead. For example, 27% of employees say their employers could help them with expenses by offering an emergency savings account, and 42% confess they would likely change employers for improved benefits. This was especially prevalent for Gen Z (54%) and Millennial (49%) employees.
When asked what features would improve their relationship with employers, 38% of respondents said support with financial emergencies, 31% said receiving lifestyle benefits, and 25% responded that receiving a matching HSA contribution would better their relationship.
“The retirement journey is more than a 401(k) plan. Today, employees are seeking employers who can help them save for emergencies and support their personal and financial wellbeing,” said Kevin Robertson, chief revenue officer at HSA Bank. “In addition to helping create a bigger nest egg for the future, these actions have clear business benefits including stronger connections, reduced turnover and higher productivity.”
Additional findings from the HSA Bank survey can be found here.
SEE ALSO:
HSA Assets Jumps to $147B for Year-End 2024
IRS Unveils Modest Growth for 2026 HSA Contribution Limits
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.