A recent survey found that more financial advisors are providing health savings account (HSA) services to their corporate clients, and they’re bullish about the future growth of HSA investments and assets in general.
Access Point HSA, a Rhode Island-based consulting firm that offers the Certified Health Savings Adviser (CHSA) Program, conducted the survey in August.
A large majority (79%) of the respondents said that more than 50% of their business was corporate DC-based. In addition, 41% stated that their average plan size was below $10 million, while the average plan size for 39% of those surveyed was between $11-$50 million.
Highlights of the survey include:
- Almost half (49%) surveyed stated that they currently offer HSA services to their clients, while 44% responded that they are interested in offering HSA services but are not sure how they would be compensated.
- Asked their main motivation for incorporating HSA services into their businesses, 73% responded that it was for “strengthening relationships with current clients.”
- Looking forward, 56% of advisors stated that they expect that in two years their active role with HSAs will be “greatly increased with a majority of their clients.”
Continuing trend
Matthew Clarkin, president and co-founder of Access Point HSA, said the survey is evidence that top advisors are beginning to take a more active role with HSAs, a trend likely to continue.
Survey responses also showed that advisors have a positive outlook on the future growth of investment of HSA assets.
In its 2019 year-end HSA report, Devenir Research projected that the investing of HSA assets will increase by approximately 54% to $24.2 billion by the end of 2021.
When asked their opinion of Devenir’s projection for HSA investment growth by 2021, 78% of advisers said that the investment of HSA assets would meet or exceed the level projected by Devenir.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
