Savers over age 65 have just over $3,400 saved in health savings accounts to finance rising healthcare costs in retirement.
Who is using HSAs? The majority of HSA account holders on our platform are at or near retirement-age, between the ages of 55 and 64. In total, savers of these ages represent over $167,000,000* in total health savings account assets that we administer.
*Sum of health savings account balances across account owners age 55 to 64 on our platformMillennials, however, are the least represented generation in our HSA breakdown. There's great opportunity to educate this younger end of the HSA market and encourage them to take advantage of the carryover potential and triple-tax-advantaged nature of HSAs.
Health savings account balances appear to start growing around the time that savers have less responsibility to fund their own kids' education and health expenses and more freedom to save for their own futures.
Savers over age 65 are starting to see the value in leveraging HSAs as an additional retirement savings strategy, with the highest average in health savings of over $3,400.
Our partner Devenir's 2015 HSA market report revealed unprecedented growth.
The number of total HSA accounts rose to 16.7 million, holding almost $30.2 billion in assets, a year-over-year increase of 25% for HSA assets and 22% for accounts.
Projected future growth is even more promising. The largest HSA providers are projecting HSA asset growth of 22% in 2016, and Devenir currently projects that by the end of 2018 the HSA market will exceed $50 billion in HSA assets.
Most Americans don't realize that investment-based HSAs are available. Not only do they exist, but they also offer savers a new way to invest in their future and the opportunity to grow health savings at a faster pace.
Average total balance of investment HSA holder
As word continues to spread, HSA investments continue to grow. HSA investment assets reached an estimated $4.2 billion in December 2015, up 33% year over year.
Plus, the average investment account holder has a $14,035 average total balance (deposit and investment account). That’s a pretty nice healthcare nest egg.
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