Health Savings Accounts (HSA): An Untapped Opportunity for Investment Firms
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$ AN INVESTMENT FIRM’S GUIDE HSA OPPORTUNITIES INCREASE BUSINESS New customers New business from existing customers More assets under management $ 54B 3 % Only 3%of all HSA account holders invest 1 Over the last 3 years HSA investors enjoyed an avg annualized return of $ 4.2B 1 In December 2015 HSA investment assets reached $ 9.7B 1 11.3 % 1 By the end of 2018 the HSA market will have estimated investment assets nearing $ 14,035 1 HSA Investment account holders have an average total balance of HSA providers collectively generated $750-$850M in HSA revenue per year 1 By the end of 2018 the HSA market will reach $54 billion in HSA assets 1 +27 % HSA providers are projecting HSA asset growth of 27% in 2016 1 Nearly 19.7 million Americans had a high-deductible health plan with an HSA in 2015. 6 The number of HSA account holders is projected to almost double by 2018 to 30M accounts. 1 17.4 Million 19.7 Million 30 Million (Est.) 2014 2018 2015 Interest on AUM, Account Fee Income & Interchange 34% - of American workers have no savings set aside for retirement 2 4 in 10 people do not have access to retirement plan at work 3 Only 22% are very confident that they will have enough money for a comfortable retirement 3 X 10 59% Individuals need to save 10x their salary to retire comfortable at age 67 4 245K A 65 year old couple who retired in 2015 needs nearly $245,000 to cover medical bills in retirement 4 34% 22% % Visit today to learn more about how Healthcare Trends Institute can help you simplify the business of healthcare. www.healthcaretrendsinstitute.org © Copyright 2016 Healthcare Trends Institute Sources: EXTEND PRODUCT OFFERING GROW REVENUE ESTABLISH THOUGHT LEADERSHIP Through offering the most tax-advantaged retirement product - An HSA HSAs more popular than ever for supplementing retirement savings Administering interest-bearing HSAs as a new revenue opportunity Untapped growth opportunity through HSA availability and education Few people with an HSA are aware of the ability to fund their healthcare in retirement 3 Most tax-advantaged vehicle out there for saving: contributions are pretaxed tax free, money grows tax free, and if it is used for qualified medical expenses, the withdrawal is also tax free. 5 TAX INFLUENCE ASSET GROWTH HSAs quickly becoming the standard for healthcare savings 1. Devenir Group 2. Social Security Administration 3. The PEW Charitable Trusts 4. Fidelity 5. Avidia HSA Consulting White Paper 6. AHIP 2015 Census of Health Savings Account
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Transcript of Health Savings Accounts (HSA): An Untapped Opportunity for Investment Firms
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AN INVESTMENT FIRM’SGUIDE HSA OPPORTUNITIES
INCREASE BUSINESS
New customers New business fromexisting customers
More assets undermanagement
$54B
3%
Only 3%of all HSA account holders invest1
Over the last 3 years HSA investors enjoyed an avg annualized return of
$4.2B1
In December 2015 HSA investment assets reached
$9.7B1 11.3%1
By the end of 2018 the HSA market will have estimated investment assets nearing
$14,0351
HSA Investment account holders have an average total balance of
HSA providers collectively generated $750-$850M in HSA revenue per year1
By the end of 2018 the HSA market will reach $54 billion in HSA assets1+27% HSA providers are projecting
HSA asset growth of 27% in 20161
Nearly 19.7 million Americans had a high-deductible health plan with an HSA in 2015.6 The number of HSA account holders is projected to almost double by 2018 to 30M accounts.1
17.4 Million19.7 Million
30 Million (Est.)
2014
20182015
Interest on AUM, AccountFee Income & Interchange
34% - of American workers haveno savings set aside for retirement2
4 in 10 people do not have access to retirement plan at work3
Only 22% are very confident that they will have enough money
for a comfortable retirement3
X10
59%
Individuals need to save 10x their salary to retire comfortable at age 674
245KA 65 year old couple who retired in 2015 needs nearly $245,000 to cover medical bills in retirement4
34% 22%
%
Visit today to learn more about how Healthcare Trends Institute can help you simplify the business of healthcare. www.healthcaretrendsinstitute.org© Copyright 2016 Healthcare Trends Institute
Sources:
EXTEND PRODUCT OFFERING
GROW REVENUE
ESTABLISH THOUGHT LEADERSHIP
Through offering the most tax-advantaged retirement product - An HSA
HSAs more popular than ever for supplementing retirement savings
Administering interest-bearing HSAs as a new revenue opportunity
Untapped growth opportunity through HSA availability and education
Few people with an HSA are aware of the ability to fund their healthcare in retirement3
Most tax-advantaged vehicle out there for saving: contributions are pretaxed tax free, money grows tax free, and if it is used for qualified medical expenses, the withdrawal is also tax free.5
TAX
INFLUENCE ASSET GROWTH HSAs quickly becoming the standard for healthcare savings
1. Devenir Group2. Social Security Administration3. The PEW Charitable Trusts4. Fidelity5. Avidia HSA Consulting White Paper6. AHIP 2015 Census of Health Savings Account
