Assets in health savings accounts grew 25% in 2020

Assets in health savings accounts increased 25% in 2020, to $82.2 billion, while the number of HSAs jumped 6% to more than 30 million, according to research by Devenir.

“Despite the COVID-19 pandemic, a record $42 billion was contributed to health savings accounts during 2020,” Jon Robb, senior vice president of research and technology at the Minneapolis-based investment firm, which specializes in HSAs, said in a press release. “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.”

[More: Can HSAs flip the script on retirement health care expenses?]

The report also showed a surge in HSA investment assets, which totaled $23.8 billion at the end of 2020, up 52% year-over-year.

The survey data were primarily collected in January, Devenir said in a release, and consisted largely of input from the top 100 HSA providers in the health savings account market.

[More: HSAs, an adviser favorite, just don’t get much love]

The post Assets in health savings accounts grew 25% in 2020 appeared first on InvestmentNews.

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