2.7 C
New York
HomeTop Global NewsWorkers ask for emergency savings accounts as job benefit, survey says

Workers ask for emergency savings accounts as job benefit, survey says

'Secure 2.0' law gives employers more flexibility with financial benefits

Traditional retirement plans aren’t enough

For years, employers’ financial benefits mostly focused on offering robust workplace retirement plans.

Yet, when asked where they would put an extra $600 provided by an employer, workers in the EBRI survey said they would spread it out — putting $192 toward funding retirement, $171 to emergency savings and $89 toward a health savings account, followed by paid time off, college savings and paying down college debt.  

Workplace emergency savings plans are popular

JGI/Jamie Grill | Getty Images

About 42% of employees want to be automatically enrolled in an emergency savings account through their employer, according to research from the Bipartisan Policy Center. However, just 10% of employers offered these benefits in 2022, according to human resources consulting firm Buck.

Yet those numbers may increase as employers recognize the upsides for the worker and the workplace.

“When you do need that money for an emergency, you’re not taking a withdrawal from your 401(k) plan, you’re not missing a student loan payment, you’re not getting evicted, you’re not having your water shut off, so that you can actually come to work without having to worry about all of that,” said Chantel Sheaks, vice president of retirement policy at the U.S. Chamber of Commerce. 

New law gives employers more benefits flexibility

Source link

latest articles

explore more


Please enter your comment!
Please enter your name here