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

WallStreetBets takes on the SEC — and makes a surprisingly sharp case
WallStreetBets takes on the SEC — and makes a surprisingly sharp case

The Reddit trading community's formal comment letter against the proposal is drawing widespread attention across finance and tech circles.

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline