Average HSA Balance By Age

Health savings accounts or HSAs help offset your out-of-pocket healthcare costs when you have a high-deductible health plan (HDHP). HSAs offer tax advantages that make them useful for covering medical costs in retirement. Taking a look at the average HSA balances by age can help you see how you stack up. While it’s wise to take advantage of your HSA, you’ll also need a retirement plan beyond it.

If you’re unsure of where to start, try working with a financial advisor.

What Is the Average HSA Balance By Age?

The average HSA balance varies based on whether the account owner uses their HSA as an investment or deposit account. The average total balance for HSA investment accounts was $20,677 in mid-2024, according to Devenir’s 2024 Midyear HSA Market Survey. The HSA provider estimates investment account balances are eight times larger than HSA balances that aren’t invested.

Meanwhile, the Employee Benefit Research Institute (EBRI) has age-level data from approximately 14 million HSAs, which accounts for around 40% of the entire HSA market. At the end of 2023, average balances ranged from $973 (under age 25) to nearly $8,880 (65 and older).

How Much Should I Contribute to My HSA?

When deciding how much you should contribute to an HSA, there are a few things to consider. First, HSA contribution limits increased in 2026 for self-only coverage, from $4,300 to $4,400. Folks with family plans can contribute up to $8,750 in 2026, up from $8,550 in 2025. If you’re 55 or older, you can contribute an extra $1,000 into your HSA account.

Maxing out an HSA helps you leverage the numerous tax advantages that come with the account. You can deduct contributions from your taxable income. Also, as the account holder you can invest the money in the account, and it can earn tax-free interest. Plus, if you take a distribution after age 65, you won’t have to pay taxes on the total amount withdrawn.

If maxing out your HSA is not in the cards for you, you can select a different amount. Some employers match contributions, while others contribute separately to your account. If your employer contributes to your account, it’s essentially free money you can use toward qualifying medical expenses within the year or savings for future medical costs. You can use the money for items like Band-Aids, glasses, contact lenses or visits to the doctor.

If you have funds left over at the end of the year, you can roll the account balance over to the next year to pay for qualifying expenses.

What If I Have a Below-Average HSA Balance for My Age?

Concerns about a smaller amount in your HSA are understandable, especially if you haven’t been making regular contributions to your account. Getting a jump start on a savings account is always ideal, but you can take steps to make up for lost progress.

One way is to start putting as much money into the account as soon as you can. This can be a challenge, but reducing your monthly expenses can give you extra cash to put into your HSA. You can allocate more income towards your savings by getting rid of that second car or a Netflix subscription, addressing any existing debt can also free up money for savings.

You can also give yourself a few more years before retiring.Delaying retirement won’t replace lost compounding years, but the extra income can help grow your account. An extra perk of waiting a year or two longer to retire is that your Social Security benefits increase. While Social Security benefits probably won’t be sufficient to retire on, they will defray some of your cost of living while retired.

HSA Alternatives

You have ownership of your HSA, even if you change jobs. But keep in mind that changing your health plan in the middle of the year may mean that it will no longer be possible to make contributions to your account. If that occurs, the number of months you had an HSA-eligible plan determines the highest amount you can put towards your HSA. If you’re no longer eligible, here are a few alternatives worth considering.

401(k)

People with a 401(k) plan can make pre-tax contributions from their paychecks as a way to lower taxes they owe on their income. As long as the funds stay in the 401(k) account, workers can take advantage of a retirement account that decreases their annual taxable income.

Since individuals put away pre-tax dollars in their 401(k), you’ll pay income taxes on funds when you withdraw them. Keep in mind that a Roth retirement account takes a different route: the federal government withholds income tax first, and then you deposit money into the account. When you withdraw funds from a Roth IRA during retirement, the federal government does not apply further taxes on these dollars.

If you don’t currently max out your contributions, a salary increase, bonus or lump sum windfall is a good time to increase your contribution amount. For example, if you receive a 3% raise, consider using 1–2% of it to boost retirement savings.

The table below shows the median and average account balances for defined contribution plans, like 401(k)s and 403(b)s, according to Vanguard:

Traditional IRA or Roth IRA

A host of retirement accounts are available to you to pay for health care costs in the future. Maxing out your annual contributions allows you to capture all potential tax benefits. As explained above, traditional and Roth IRAs differ in how taxes are applied to contributions. As with a 401(k), traditional IRA contributions are tax deductible.

Then in retirement you must pay income tax on all distributions. At the same time, you can contribute to a Roth IRA with after-tax dollars. You then withdraw the money tax-free in retirement. The IRA contribution limit in 2026 is $7,500 ($8,600 if you’re 50 or older).

Emergency Fund

An emergency fund is designed to cover a wide range of unexpected expenses, not just healthcare costs. This can include job loss, car repairs or urgent home maintenance. Having easily accessible cash can help you avoid relying on credit or withdrawing from long-term savings.

Unlike an HSA, which is intended for qualified medical expenses, an emergency fund can be used for any financial need. This flexibility makes it a more versatile safety net, especially for individuals who want broader coverage beyond healthcare-related costs.

Emergency funds are typically held in liquid accounts like savings or money market accounts, making it easy to access funds quickly. HSAs, while accessible, may involve more considerations if funds are used for non-qualified expenses. Keeping an emergency fund ensures you have immediate access to cash when you need it most.

Bottom Line

Understanding the average HSA balance by age can help you gauge your progress, but building financial security goes beyond one account. While HSAs offer valuable tax advantages for healthcare costs, an emergency fund provides broader flexibility for unexpected expenses. By balancing both, you can create a more resilient financial plan that supports your health needs and protects against life’s uncertainties.

Tips on Health Care

• Consider working with a financial advisor as you plan for potential medical expenses in the future. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Another important thing to think about is life insurance. Use SmartAsset’s free life insurance calculator to see how much you need so you can make any adjustments you need to.

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