Data & Research April 3, 2025

HSA Assets Grow to Nearly $147B in 2024

While balances are up, Devenir reported, continued seasonality was evident in the share of accounts that are not funded at all.

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Research and investment provider Devenir LLC reported that health savings account balances rose 19% in 2024 from 2023 levels, reaching almost $147 billion. The number of accounts grew 5% last year, according to the firm’s year-end survey.


“The sustained growth in both assets and participation demonstrates a growing awareness among consumers and employers of HSAs’ long-term value in managing healthcare costs,” said Jon Robb, a Devenir senior vice president of research and technology, in a statement.

Total HSA Assets (dollars in billions)

Source: 2024 Year-End Devenir HSA Market Survey

Devenir cited strong growth in HSA investments, driven by positive market performance, that resulted in HSA investment assets rising by 38% to $64 billion in 2024. The survey also found that the number of HSA holders investing some or all of their balances continued to rise. In approximately 3.5 million HSAs—roughly 9% of all accounts—at least a portion of the funds had been invested. Overall, 44% of HSA assets were in investments at the end of 2024.

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The survey also found contribution and withdrawal activity in HSAs was largely balanced. Account holders contributed nearly $56 billion to their HSAs in 2024, up 11% from the prior year. Account holders withdrew $42 billion during the same period, up 10% from the year before.

While balances are up, Devenir reported, continued seasonality was evident in the share of accounts that are not funded at all.

“Accounts are often opened during the fall open enrollment season, but remain unfunded until early the following year,” according to Devenir’s summary of the survey results. “At the end of 2024, about 21% of all accounts were unfunded, unchanged from the previous year.”

Another ongoing trend is that employers continue to be integral to the adoption of HSAs, with 61% of all accounts, totaling $97 billion, affiliated with an employer. Some 13% of employer-affiliated HSAs are unfunded, a far lower percentage than the 35% of unaffiliated accounts that are unfunded.

Devenir’s research demonstrated the cumulative effect of long-term HSA ownership, with older accounts “benefiting from extended periods of potential contributions and possible investment growth,” the summary stated.

Devenir researchers found a clear correlation between account age and balance size: Funded accounts opened in 2004 reported the highest average balance, at $29,869, while accounts opened in 2024 averaged $2,415.

Looking ahead, Devenir projected the HSA market will exceed 45 million accounts by the end of 2027, with $199 billion in total assets.

The 2024 Year-End Devenir HSA Market Survey was conducted in early 2025, seeking data from HSA providers.

Products & Services April 2, 2025

Annuities Can Make Client Relationships ‘Sticky,’ but Misunderstandings Persist

Almost 78% of financial professionals report that clients have negative preconceptions about annuities, making it more difficult to foster a clearer understanding of their benefits.

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Annuities can play an important role in a portfolio, with 91% of annuity-producing financial professionals agreeing that annuities help clients protect against market volatility, and 86% saying they aid in portfolio diversification.

The Nationwide survey of 504 professionals found that 73% of financial professionals who sell annuities believe they aid in client retention, with 81% of top producers (those selling at least 10 annuities in 24 months) finding they make client relationships “stickier.”

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“What might be unexpected to some is the long-term relationship that can be built with clients because of an annuity purchase,” said Rona Guymon, Nationwide’s senior vice president of annuity distribution, in a statement. “We know annuities are complex investment vehicles that sometimes require more explanation and guidance than other solutions. This presents an opportunity for financial professionals to connect with their clients on a deeper level, driving conversations to understand their long-term goals as they work together to build a holistic plan.”

Annuity Misinformation and External Challenges

Despite benefits of including annuities in holistic plans, financial professionals face challenges incorporating them into client portfolios. While 27% of clients own at least one annuity, professionals across all channels (broker/dealer, wirehouse and registered investment advisers) aim for 38%, but face obstacles in reaching this goal.

Clients’ perceptions that annuities are overwhelming (60%) and external factors, such as TV and radio shows and podcasts that often diminish the appeal of annuities (54%), present significant challenges for financial professionals striving to educate clients, the survey found.

These misconceptions are compounded by the fact that 78% of financial professionals report that clients already have negative preconceptions about annuities, making it more difficult to foster a clearer understanding of their benefits. These barriers highlight the complex task of shifting client perspectives and educating them on how annuities can play a vital role in their financial planning, according to Nationwide.

Building Trust Through Educational Conversations

In order to effectively sell annuities, break down misconceptions and build trusting relationships with their clients, financial professionals say they are turning to annuity carriers for help—specifically when it comes to materials they can use to educate their clients. Of respondents to the Nationwide survey, 54% of financial professionals said they are seeking client-facing materials on annuities as a source of guaranteed income, and 43% said they want more on annuities’ role in an overall financial plan.

“Financial professionals should lean on annuity providers for help educating clients on the role annuities can play in their portfolios,” Guymon said.

For example, the market for target-date funds with a guaranteed income annuity component saw several new entrants in 2024, and 2025 is likely to be similar, says Kelby Meyers, CEO and founder of Nestimate Inc., which tracks the in-plan retirement income market.

TIAA announced late last year that it had $50 billion in assets within in-plan annuity target-date offerings, up from $30 billion at the beginning of 2024. These offerings include RetirePlus, a version of which has been available since 2014, and the Nuveen Lifecycle Income Series, launched in mid-2023.

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