Financial Institution's Guide to the Health Savings Account Investment Industry

FINANCIAL INSTITUTIONS: YOUR GUIDE TO HSA OPPORTUNITIES FINANCIAL INSTITUTIONS OFFERING HSAS HAVE A MOMENTOUS OPPORTUNITY TO INCREASE BUSINESS: New customers New business from By the end of 2017 the HSA market will have estimated assets nearing $44 Bil. existing customers HSAS INVESTMENTS In December 2014 Over the last 3 years HSA investors enjoyed an avg. annualized return of HSA investment account By the end of 2017 the HSA market will have estimated holders have an average HSA investment total balance of assets reached investment assets nearing $12,995 $3.2 Bil. $8.3 Bil. 12.5% THE GROWING HSA MARKETPLACE: 2011 Nearly 17.4 million Americans had a high-deductible health plan with an HSA in 2014, and that number has been growing at a rate of about 15% annually since 2011.2 2012 2013 2014 17.4 Million HSAS AS A RETIREMENT SAVINGS VEHICLE: Middle-class Americans' most important day-to-day financial concerns: 12% 59% DUE 13% 59% - Being able to pay monthly bills“ 13% - Being able to save for retirement 12% - Being able to pay heathcare costs At current contribution limits and an annual return 220K of 4%, a couple could begin investing at age 45 and save nearly 50% of their likely out-of-pocket retirement medical expenses by the time they turn 65. Any increases to annual contribution limits and additional 50% A 65-year old couple who retired in 2014 needs nearly $220,000 to cover medical bills in retirements catch-up contributions can help them save more. FINANCIAL INSTITUTIONS' OPPORTUNITIES TO INFLUENCE ASSET GROWTH: 15% 42% 58% 85% 65% don't understand how an HSA workss 42% of individuals with an HSA-eligible plan did not open an HSA Investors who contribute Only 15% of HSAS received the maximum contribution in 2013 to both HSAS and 401ks have much higher balances HSA CUSTOMERS WOULD BENEFIT FROM PROFESSIONAL GUIDANCE FROM THEIR HSA CUSTODIAN VIEW COMPREHENSIVE & DETAILED -> INSIGHTS IN OUR COMPLETE GUIDE SOURCES: Healthcare Trends Institute 1 2014 Year-End Devenir HSA Market Research Report Executive Summary 2 American's Health Insurance Plans (AHIP) 3 EBRI/Greenwald & Associates 2013 Consumer Engagement In Health Care Survey www.HealthcareTrendsInstitute.org 4 Wells Fargo: The 401(k) and the HSA: Partners in long-term savings opportunities 5 2013 Fidelity Investments HSA research study 6 BenefitsPro: Is the HSA the New 401(k) © Copyright 2015. Healthcare Trends Institute. 7 InsuranceQuotes.com