HSA Investment Assets Soar to $23.8 billion, Up 52% In 2020

  • Total HSA assets reached $82.2 billion, 25% increase year-over-year
  • HSA dollars that are invested soared to $23.8 billion, up 52% year-over-year
  • There are now over 30 million health savings accounts, a 6% increase year-over-year
  • Almost $42 billion was contributed to health savings accounts in 2020

MINNEAPOLIS — Devenir, a national leader in providing investment solutions for health savings accounts (HSAs), released today the results of its 21st semi-annual health savings account survey and resulting research report. Devenir found that the number of HSAs has grown to now exceed 30 million, holding an estimated $82.2 billion in assets at the end of 2020.

The survey data was primarily collected in January of 2021 and largely consisted of top 100 HSA providers in the health savings account market, with all data being collected for the period ending on December 31st, 2020.

“Despite the COVID-19 pandemic, a record $42 billion was contributed to health savings accounts during 2020. Account holders were able to tap their health savings accounts to help cover over $30 billion in medical expenses throughout the difficult year, while continuing to accumulate meaningful savings for future medical expenses,” said Jon Robb, SVP of research and technology at Devenir.

Key findings from the Devenir 2020 Year-End HSA Survey and resulting research report:

  • Robust HSA asset growth.  Health savings account asset growth remained strong, increasing to $82.2 billion in assets held in over 30 million accounts, a year-over-year increase of 25% for assets and 6% for health savings accounts for the period ended December 31st, 2020.
  • HSA investment asset growth soars.  Fueled by strong market gains in the second half of 2020, HSA investment assets soared to an estimated $23.8 billion at the end of December, up 52% year-over-year. On average, investment account holders hold a $17,926 total balance (deposits and investments combined).
  • Interest in HSA investing grows.  There are now approximately 1.7 million accounts that are investing a portion of their HSA dollars, representing almost 6% of all accounts.
  • HSA contribution growth outpaces withdrawals.  Account holders contributed almost $42 billion to their accounts in 2020 (up 8% from year prior) and withdrew over $30 billion from their accounts in 2020 (up 4% from year prior).

“We are encouraged by the momentum HSA investing gained in 2020, as a record 7% of funded accounts hold investments,” said Zach Haas, VP, Investment Analyst at Devenir.

Devenir currently projects that the HSA market will exceed 36 million accounts by the end of 2023, holding over $127 billion in assets.

Click here to view the Executive Summary

Projections derived from 2020 Year-End Devenir HSA survey, press releases, previous market research, and market growth rates. Projections are barring any regulatory or market environment changes.

Forward-looking statements are based on current expectations and assumptions based on historical growth, the economy, other future conditions and forecasts of future events, circumstances and results.

About Devenir

Devenir is a national leader in providing customized investment solutions for HSAs and the consumer directed health care market. When health savings accounts first emerged in 2004, Devenir built its expertise around delivering cutting-edge investment solutions. As the consumer driven health care industry grew, so did Devenir’s reputation as a leading researcher and award-winning investment consultant. Today, Devenir continues to lead the way in the rapidly growing HSA market. A research driven perspective makes Devenir the go-to investment advisor, HSA investment platform and consultant to employers, banks, third party administrators, health plans and technology providers. Learn more at devenir.com

Contact
Devenir
Eric Remjeske
952-446-7400
research@devenir.com