Average health savings account balances reached a record high of $5,532 in 2024, a new report from the Employee Benefit Research Institute found. More than half of account holders took distributions, and nearly 20% invested HSA funds in non-cash assets.
As employees gain experience with their HSA accounts, they are more likely to both contribute and invest more. “What stands out from this long-term analysis is that people use their HSAs differently the longer they have their accounts,” said Paul Fronstin, Ph.D., director of health benefits research at EBRI.
Researchers analyzed HSA activity for 15.2 million accounts with $53.76 billion in total assets for the decade ending in 2024. This data revealed several trends.
- Despite average balances reaching a new high, few account holders contributed the maximum amount. Balances remain relatively low compared to out-of-pocket maximums for HSA-eligible health plans, which were $8,050 for individual coverage and $16,100 for family coverage in 2024.
- Employees picked up a slightly higher share of contributions in 2024. The average worker contribution increased to $2,308, while the average employer contribution decreased to $727. Both employer and employee contributions adjusted for inflation were higher in the 2010s.
- More than half of account holders took a distribution during 2024. Although the average distribution of $1,870 was slightly higher than in 2023, it still was less than in previous years after adjustment for inflation.
- Although fewer than 1 in 5 account holders invest, this percentage has increased for eight consecutive years. This is an encouraging sign that they are increasingly taking advantage of the investment opportunities and tax benefits HSAs offer, according to EBRI.
The takeaway message for employers and plan sponsors is that workers tend to change how they use their HSAs over time. By understanding differences in account balances, contributions and investment behavior based on account tenure, they can better design benefit strategies and employee education to support both current and future health care needs.
“The longer individuals have owned an HSA, the larger their balances tend to be, the more they tend to contribute and the more likely they are to invest some of their assets rather than hold everything in cash,” Fronstin said. “Those behaviors can help account holders prepare not only for unexpected health care expenses today but also for potentially significant health care costs in retirement.”