Though market forces have slowed some of the recent growth in the health savings account market, consumers continue to invest in HSAs for future medical expenses, according to the results of a recent survey conducted by Devenir earlier this year and released yesterday.
HSA asset growth in 2022 was held back by “significant stock market headwinds” and higher interest rates according to the report, but the growth in the number of HSAs accelerated. At the end of 2022, there were $104 billion in HSA assets held among 35.5 million accounts, a year-over-year increase of 6% for assets and 9% for accounts.
Despite the headwinds noted by researchers in the first half of last year, HSA investment assets resumed their growth during the second half of 2022, growing 9% to end the year with $33.8 billion (down 2% from the end of 2021). Almost 2.6 million health savings accounts have at least a portion of their HSA dollars invested, representing over 7% of all accounts. Account holders contributed $47 billion to their accounts in 2022 (up 11% from the year prior) and withdrew $34 billion from their accounts during the year (up 11% from year prior).
Devenir projects that the HSA market to reach 43 million accounts and hold almost $150 billion in assets by the end of 2025. With the 20th anniversary of HSAs coming later this year, ABA’s HSA Council and Devenir will partner on more research to be released in June.