Supported by stock market tailwinds, Health Savings Account assets saw record growth in 2023, according to findings of the most recent HSA survey and research report from Devenir, a national leader in providing investment solutions for HSAs.
The report found that there was $123 billion saved in over 37 million HSAs at the end of 2023. That’s a year-over-year increase of 19% for assets and 5% for accounts. Further, the Health Savings Account market is projected to approach 44 million accounts by the end of 2026, holding $168 billion in assets.
“Our latest survey results not only show robust growth in HSA assets but also projects a strong, upward trajectory for the future, indicating a steady and significant expansion of the HSA market,” said Jon Robb, SVP of research and technology at Devenir.
The survey data for Devenir’s 27th semi-annual HSA report was primarily collected in early 2024 for the period ending on Dec. 31, 2023.
The report found HSA investment assets continue to rebound. After enduring one of the worst stock markets in decades during the first half of 2022, HSA investment assets have seen rapid growth. During 2023, HSA investment assets grew 37%, totaling $46 billion at the end of the year.
The report noted that the number of HSAs being used for investing continues to grow, but the rapid growth seen over the last few years has slowed. About 2.9 million HSAs, representing about 8% of all accounts, have at least a portion of their HSA dollars invested.
Another key finding from the report was an increase in withdrawal activity. Account holders contributed $50 billion to their accounts in 2023 (up 7% from the year prior) and withdrew $39 billion from their accounts during 2023 (up 13% from year prior).
HSAs opened last year had an average balance of $1,598 at the end of 2023, compared to a $1,436 average balance the year prior at the end of 2022.
Health Savings Account owners will be able to contribute slightly more to the triple-tax-advantaged accounts in 2025. The IRS recently announced 2025 contribution limits for HSAs, and is raising limits by $150 for individuals and by $250 for individuals with family coverage compared to this year’s limits.
For calendar year 2025, the annual HSA contribution limit for an individual with self-only coverage under a high-deductible health plan (HDHP) will be $4,300, up from $4,150 in 2024. For an individual with family coverage, the amount will be $8,550, up from $8,300.
SEE ALSO:
• HSA Contribution Limits Increased Slightly for 2025
• HSA Assets on the Rise for Midyear 2023
• Gen Z Least Aware About HSAs
• Paying for Medical Needs with an HSA: Distinct Considerations for Women