Benefits February 23, 2017

Employees May Be Getting the Point of HSAs

Devenir’s research shows HSA investment assets reached an estimated $5.5 billion in December 2016.
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Health savings accounts (HSAs) can be used to save for out-of-pocket medical expenses now and in the future, and research from Devenir shows employees are getting it.

HSAs have grown to an estimated $37 billion in assets and 20 million accounts at year-end 2016 and have grown to over $41 billion in assets during the month of January, according to Devenir’s 13th semi-annual HSA survey and resulting research report.

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This represents a year-over-year increase of 22% for HSA assets and 20% for accounts for the period of December 31, 2015, to December 31, 2016. Devenir found that during 2016, health plan partnerships were the leading driver of new account growth for HSA providers, accounting for 37% of new accounts.

Research has shown that HSAs with investments had higher account balances than those that do not offer investments. Devenir’s research shows HSA investment assets reached an estimated $5.5 billion in December, up 29% year over year. The average investment account holder has a $14,971 average total balance (deposit and investment account).

Devenir projects that by the end of 2018, the HSA market will likely exceed $50 billion in HSA assets covering more than 27 million accounts.

The full research report is here.
Products February 23, 2017

Solution Offers Employees Way to Save for Charitable Giving

A partnership is designed for employees who want to make charitable giving a part of their long-term financial plan.
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For those employees who want to make charitable giving part of their long-term financial plan, Global Impact and AFS 401(k) Retirement Services, an independent advisory firm, announced a partnership to provide employers with a toolkit for a strategic program that allows employees to make informed decisions about giving.

Considered a Donor-Advised Fund (DAF), a charitable giving tool often accessible only to foundations and high-net worth households, Growfund was designed to offer everyday working Americans the opportunity to create their own foundations. Growfund operates like a 401(k) or a personal foundation, with funds able to be saved or invested and grown over time.

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The company says employees can plan for their giving the way they plan for their future, with the ability to make grants to more than 800,000 charities or thematic impact funds. Growfund stays with the employee for life. For companies to support employee giving, Growfund offers matching and payroll giving functionality, as well as the ability to receive a single tax receipt for all contributions.

Alex Assaley, Managing Principal at AFS 401(k), says, “The landscape for retirement plans and employee benefits is changing—companies and their employees want more tools, resources, and guidance to steer a worker’s entire financial picture.”

For information or a product demo, email partners@mygrowfund.org. Visit https://mygrowfund.org/ to learn more.

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