Health Savings Account Participation on the Rise, Retirement Strategy Needs Attention, PSCA Finds

PSCA HSA Trends and Innovations webinar to examine gains in participation, awareness gaps and opportunities to improve employee engagement

ARLINGTON, Va.--(BUSINESS WIRE)--The Plan Sponsor Council of America’s (PSCA) 2026 Health Savings Account Survey shows increased participation as 83% of employees contributed to their Health Savings Account (HSA) in 2025, up from 73.4% in 2024. Despite the growth, only one-quarter of employers position HSAs as part of a long-term retirement savings strategy.

The annual survey of plan sponsors, sponsored by HSA Bank, also underscores the role of savings and investing activity among HSA participants. Average HSA balances reached $6,477 in 2025, while 22% of participants invested their HSA savings, up from 20.3% in 2024 and 18.9% in 2023. Meanwhile, 68.5% of employers now offer HSA investment options, a 12.8% increase from 2022.

"Health Savings Accounts are evolving from a healthcare spending vehicle into an important financial wellness and long-term retirement strategy," said Hattie Greenan, Director of Research and Communications at PSCA. "Employers are expanding support through contributions, automatic enrollment, investment options, and decision-support tools. Our findings suggest many plan sponsors have an opportunity to help employees better understand the unique role HSAs can play in preparing for healthcare expenses in retirement.”

The PSCA research found nearly two-thirds (65.5%) of employers cite employee education as the most common HSA concern while just half provide HSA education only during open enrollment. Meanwhile, only one-quarter position HSAs as part of a retirement savings strategy for employees.

“Employees are increasingly contributing to HSAs, but many view them as spending accounts for near-term expenses rather than as tools that can help prepare for retirement,” said Ann Brisk, Senior Managing Director, Innovation and Strategy, HSA Bank. “Employers have an opportunity to provide real-time guidance to help workers understand the value of HSAs, encouraging better informed health and wealth decisions.”

Additional findings from the 2026 Health Savings Account Survey include:

Increased Participation: Eighty-three percent of employees with an HSA contributed to their account in 2025, up from 73.4% in 2024. Average participant contributions reached $2,829 in 2025.

Account Balances: The average account balance at the end of 2025 was $6,477.

Employer Contributions: More than three-quarters (77.2%) of employers surveyed contribute to employee HSAs. Among employers that contribute, 61.3% provide a set contribution based on coverage level, up from 54.9% in the prior year.

Automatic Enrollment: Nearly 46% of all organizations surveyed automatically enroll employees in an HSA when they enroll in an HSA-qualified health plan, up from 43.1% in 2024 and up from 35.1% five years ago.

HSA Rewards: Thirty-five percent of organizations reward employees for health and wellness program participation, up from 32.0 percent the year before.

PSCA will host a 2026 HSA Trends & Innovations webinar on October 1 at 2 p.m. ET that will feature an in-depth review of the 2026 HSA survey results and highlight emerging HSA utilization trends. The webinar will also discuss real-world examples and best practices for program design. The session is free and open to the public.

About HSA Day

To help employers support participant education, PSCA will provide education tools to employers to celebrate HSA Day on Oct. 15. To access last year’s resources and look for new resources, link here: www.psca.org/HSAday.

About the Survey: PSCA’s eighth Annual HSA survey, sponsored by HSA Bank, incorporates responses from 726 U.S. employers and provides benchmarking data on company-sponsored HSA programs including participation rates, employer contribution formulas, investments and design and administration considerations. Learn more about the PSCA HSA Survey results here.

About the Plan Sponsor Council of America:

The Plan Sponsor Council of America (PSCA), part of the American Retirement Association (ARA), is a diverse, collaborative community of employee benefit plan sponsors, working together on behalf of millions of employees to solve real problems, create positive change, and expand on the success of the employer-sponsored retirement system. With members representing employers of all sizes, we offer a forum for comprehensive dialogue. By sharing our collective knowledge and experience as plan sponsors, PSCA also serves as a resource to policymakers, the media, and other stakeholders as part of our commitment to improving retirement security for millions of Americans. For more information, visit www.psca.org.

About HSA Bank:

At HSA Bank we’re working toward a world where everyone is confidently engaged with their health and wealth. By delivering personalized insights, experiences and solutions, we make it simple for our nearly 4 million members nationwide to drive value and tangible outcomes. As a leader in health accounts for over two decades, we have the depth and breadth of expertise that matters most. We are devoted to delivering an outstanding user experience and our offerings in the healthcare savings space drive down healthcare costs, increase access, and assist with decision-making for individuals, employers and partners. As of June 30, 2026, HSA Bank had $16.8 billion in total footings comprising $9.3 billion in deposit balances and $7.5 billion in assets under administration through linked investment accounts. HSA Bank® is a division of Santander Bank, N.A., Member FDIC. Plan Administrative Services and Benefit Services are administered by Webster Servicing LLC. To learn more, visit hsabank.com.