Employer-Supported Emergency Savings Features: Plan Sponsor Considerations

Employer-Supported Emergency Savings Features: Plan Sponsor Considerations

Employees, particularly those early in their careers, are worried about their ability to handle major, unexpected expenses. According to a new CAPTRUST report, emergency savings is the top financial concern for workers aged 18–30 and ranks among the top three worries for older employees.

Employees Uneasy as Preparedness Lags

According to research by Empower, 50% of American workers admit they’re stressed about their current level of emergency savings. Additionally, 32% have no emergency savings, 64% say building emergency savings is a top financial priority, and 29% say they can’t afford an unexpected expense of more than $400. The median emergency savings across all Americans is just $500.

What Does This Mean for Employers?

According to the CAPTRUST study, three quarters of employees say financial concerns affect their motivation at work, and 62% report experiencing moderate to severe stress that impacts their productivity. A November 2025 Fidelity report found that employee financial stress costs employers $183 billion annually in lost productivity.

Emergency Savings Benefits

According to an EBRI survey, 77% of responding firms offer or plan to offer emergency savings benefits in the next year or two. SECURE 2.0 allows up to $1,000 in penalty-free withdrawals for personal and financial emergencies from retirement accounts, and permits eligible non-highly compensated employees to open pension-linked emergency savings accounts (PLESAs) with balances up to $2,500, funded with after-tax (Roth) contributions.

What Else Can Plan Sponsors Consider?

Nearly all employee respondents to CAPTRUST’s survey (98%) said they would use an advisor if one were offered at no cost, and 40% identified one-on-one advice as the most helpful tool for easing financial concerns. Tailoring financial content by career stage may also help—early-career employees report the highest levels of financial stress and may require different support than their older colleagues.

To learn more, schedule a meeting with one of our financial professionals today.