In the current inflationary environment and weakening labor market, the purse strings of Americans continue to tighten. Already, more than 40% of households are unable to handle a $400 emergency. How can organizations help their workers withstand the economic challenges ahead?
Key takeaways:
Supporting Employees via Emergency Savings | Offering access to an emergency savings platform offers workers a wholly-owned savings account directly connected to payroll. Employees can designate regular contributions and employers are able to provide economic incentives for participation that encourages workers to build their savings.
Q: High Yield Savings, Simpler and Easier? | A: In short, no. Many Americans face barriers to independently establishing these kind of accounts, from disqualifying credit scores to lack of financial know how. With guidance and assistance, workers are much more likely to take advantage of these kind of tools. Workplaces that provide tools to help mitigate financial hardship for their workforce see improved employee retention and wellness.
New Legislation Brings New Demand for Emergency Savings | The SECURE Act 2.0 recently passed as part of a $1.7 trillion omnibus budget bill to expand access to workplace savings plans. Benefits brokers should explore providing these plans to their clients.
