HSA assets should hit $75 billion by end of 2020, study projects

HSA assets should hit $75 billion by end of 2020, study projects
Researcher Devenir says number of accounts grew 13% last year to 25 million.
FEB 28, 2019

Assets in health savings accounts, which totaled an estimated $53.8 billion at the end of December, should rise to $75 billion by the end of 2020, according to a study by Devenir, an HSA research and investment consulting company. The investment portion of those assets is expected to rise to $16.7 billion from $10.2 billion, while the deposit portion should grow to $58.3 billion from $43.5 billion, the study found. (More:Vanguard rolls out HSAs for 401(k) participants) The number of HSA accounts surpassed 25 million, a year-over-year increase of 13%. On average, HSA investment account holders hold a total balance (deposits and investments) of $14,617. "We continue to see seasonality in the percentage of accounts that are unfunded," the report said. "Accounts are often opened during the fall open enrollment season, but remain unfunded until early the following year. At the end of 2018, about 16% of all accounts were unfunded, down from almost 20% a year ago. The reduction in the percentage of unfunded accounts can be largely attributed to the continued uptick in account closures." (More:Advisers applaud House bills to expand health savings accounts) HSA account holders contributed almost $33.7 billion to their accounts in 2018, up 22% from the year before. For accounts receiving an employer contribution in 2018, the average contribution amount rose to $839, up from $604 in 2017.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.