HSA Balances Rise Again in 2025
Average account balances for health savings accounts (HSAs) grew again in 2025, shows new findings out today from Lively.
On January 1, HSA account balances at health and lifestyle benefits platform Lively were 37% higher than the $3,997 industry average reported in Devenir’s 2025 mid-year report in April, with Lively’s average balance reaching $5,457 including unfunded accounts. This is a jump from Lively’s $4,923 average last year.
Overall, Lively’s average HSA account balances grew 11% year-over-year.
Lively experts credit the increase in balances to growing medical costs. While studies show mixed results on healthcare costs in retirement, the reality is that expenses could remain high for the average retiree. Research from Milliman reported that a healthy 65-year-old couple enrolled in Medicare and with supplemental Medigap Plan G Plus Part D coverage would need to save an average of $388,000 for healthcare costs.
Another report from Fidelity Investments had a smaller average of $172,500 for healthcare costs in retirement.
As healthcare premiums, deductibles, and out-of-pocket expenses rise, workers are seeking out HSAs to manage short- and long-term medical needs.
“HSAs have long been a strategy to help offset the high cost of healthcare,” said Alex Cyriac, co-founder and CEO of Lively, in a statement. “With premiums and out-of-pocket costs continuing to rise, making healthcare more affordable and accessible is at the core of our mission at Lively. Continued HSA eligibility expansion to all Americans is the most direct way to reduce healthcare costs and help more families.”
Several millions of Americans became eligible to contribute to HSAs on January 1 due to provisions in the “One Big Beautiful Bill Act.” Under the federal law, workers who have Bronze or Catastrophic tier plans under the Affordable Care Act (ACA) will have access to open an HSA.
HSAs, lauded for its ability to assist with medical costs, has also been marketed by employers and industry professionals as a critical retirement savings tool due to its triple tax advantages. Workers can contribute to an HSA pre-tax and the money in the accounts will also grow tax-free. Eventually, contributors could withdraw account savings without paying taxes on it, so long as it is used for qualifying medical expenses.
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.