Driven by robust investment growth, health savings accounts grew to $98.0 billion in assets held in more than 32 million accounts, a year-over-year increase of 19% for assets and 8% for accounts, for the period ended Dec. 31, 2021. In January, HSA assets reached $100 billion and accounts totaled 33 million, according to Devenir, a Minneapolis-based firm that provides investments for HSAs and gathered the data.
The company found that more than two million HSAs have at least a portion of their money invested, representing over 7% of all accounts.
On average, investment account holders have a $19,224 total balance (deposits and investments combined).
Account holders contributed more $42 billion to their accounts in 2021, up 2% from the year prior, and withdrew almost $31 billion, also up 2% from 2020.
Devenir expects that by the end of 2024, there will be 38 million HSAs holding $150 billion in assets.
Separately, Fidelity Investments reported 23% growth in the number of plan sponsors using its HSA offering in 2021, bringing the total to nearly 1,400 employers.
Fidelity said its average HSA account balance rose to $6,200. In 2021, Fidelity’s HSA retail business reported $3.1 billion in assets, a 78% year-over-year growth, the company said in a release.
ERISA Investment Fiduciary Philip Chao says most retirement plans use target date funds as a one-size-fits-all default that ignores individual circumstances
Eric J. Stone was fired by Fidelity in 2021 after facing claims he took loans from clients.
Chicago-based Curi Capital gets new majority owner as $14 billion RIA eyes acquisitions and expanded family office services
Partnership pairs organic lead detection with paid ad targeting to help end "spray-and-pray" marketing for growth-seeking advisory firms.
Jonathan Lewis joins the wealth management giant as it proceeds with a $2 billion AI and technology push for advisors.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income