Health savings account participants are largely missing out on the value of investing HSA contributions, according to an industry study of more than 1,400 U.S. healthcare consumers. Most HSA participants still use the accounts, which are triple tax-advantaged as savings vehicles and a majority of those surveyed didn't know HSA funds could be invested. Just 13 percent of those surveyed have invested their HSA assets and one in five HSA participants has “very little confidence” in their understanding of investments, which could be an opportunity for financial guidance.
Despite their discomfort with investing, HSA participants tend to be college-educated and have an average household income of $72,400. They are savvy savers, compared to their peers, and more engaged in their healthcare. According to the study, compared to the general population, nearly half of HSA participants said they are “more likely to research and compare costs” of healthcare, 68 percent reported they were “more likely” to have a savings goal and 75 percent said they were “more confident” in their predictions of how much money they need to save for their healthcare costs.