At a Glance | April 23, 2020 Account Tenure and Balance Are Associated With a Propensity to Invest HSA Funds The EBRI Database includes 9.8 million HSAs and $22.8 billion in assets as of Dec. 31, 2018. THE PROFILE OF AN HSA INVESTOR Increased Use of HSAs, but Investing Remains Rare Evidence from EBRI’s HSA Health Savings Accounts, HSA Accountholders database shows that most HSAs by Year Account Was Opened Investing Their Funds were initially opened within the 21% past few years, meaning many 19% 17% 15% are new to HSAs. The data also Only show that it is rare for HSA 10% owners to invest their HSA 6% 6% 4% invest their 3% balances. 2% 1% 1% <1% <1% <1% <1% HSAs ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 6 6 9494+J + or 1 Earlier WHEN DO ACCOUNTHOLDERS When HSA Investors First Invest BECOME INVESTORS? Most HSA accountholders who chose to invest their balances 13% invested in the 2nd year did so within the first year they opened their account. Of 10% in 3rd year 63% the HSA investors who did not 5% in 4th year of HSA investors invested immediately start out as their HSAs within the investors, the majority 1st year transitioned to investing within 9% invested after the first three years of account 37% 5 or more years ownership. invested later CHARACTERISTICS OF AN Factors Associated With Increased Probability of Investing HSA INVESTOR An additional year of tenure Increased Probability of Investing appeared to be more strongly +123% One Additional Year of Tenure associated with the propensity to transition to investor status +105% $3,000 Larger Balance at Beginning of Year than an additional $1,000 — +103% or even $3,000 — in account $1,000 Larger Employee Contribution balance. +27% $1,000 Larger Balance at Beginning of Year 1. Includes Archer Medical Savings Account (MSA) rollovers. SOURCE: Jake Spiegel, “Are HSA Investors Born or Made?,” EBRI Issue Brief, no. 504 (Employee Benefit Research Institute, April 2, 2020). © 2020 EBRI This report is copyrighted by the Employee Benefit Research Institute (EBRI). You may copy, print, or download this report solely for personal and noncommercial use, provided that all hard copies retain any and all copyright and other applicable notices contained therein, and you may cite or quote small portions of the report provided that you do so verbatim and with proper citation. Any use beyond the scope of the foregoing requires EBRI’s prior express permission. For permissions, please contact EBRI at permissions@ebri.org.