The amount of assets in health savings accounts increased sharply in the past decade and show little sign of slowing, according to Devenir, a health savings accounts (HSA) solutions provider.
The Minneapolis-based company released the results of its 18th semi-annual health savings account survey and resulting research report. It found the number of HSAs has grown to now exceed 26 million, holding an estimated $61.7 billion in assets halfway through 2019.
The survey data was collected in July of 2019 and primarily consisted of top 100 HSA providers in the health savings account market, with all data being collected for the period ending on June 30th, 2019.
It’s a year-over-year increase of 12% for accounts and 20% for assets. Other key findings include:
HSA investment asset growth rebounds
Strong market tailwinds propelled HSA investment assets to an estimated $13.3 billion at the end of June, up 35% year-over-year. On average, investment account holders hold a $15,982 total balance (deposit and investment account).
Over one million HSAs investing
There are now over one million accounts that are investing a portion of their dollars, representing a little over 4% of all accounts.
HSA contributions continue to rise
Account-holders contributed over $22 billion to their accounts in the first six months of 2019, up 12% from the year prior.
“Health savings account holders are increasingly aware of their healthcare costs in retirement” Jon Robb, SVP of research and technology at Devenir said in a statement. “To help meet those future healthcare expenses, over one million accounts are now investing their HSA dollars.”
Devenir projects that, by the end of 2021, the market will approach $88 billion in HSA assets held by over 30 million accounts.
Click here to view the executive summary.