Many Americans Lack Emergency Savings, but Employers Can Help
According to a 2019 Bankrate Financial Security Index survey, 60% of respondents could not pay a $1,000 expense. In 2017, the Federal Reserve reported 41% of U.S. adults could not easily pay a $400 expense.
With this significant number of Americans unable to pay unexpected expenses in the short-term, saving for retirement is likely not on their radar. After all, how can you think about tomorrow when you don’t feel financially secure today?
Employers helping employees set aside money for emergency savings may be an important step on the road to retirement security. This idea of employer-facilitated, short-term savings is picking up steam in Congress and in the boardrooms of the private financial sector.
Giving employees a better chance to meet their short-term needs may benefit their long-term goals, increasing retirement readiness and strengthening the entire retirement industry. Learn more in this article, “Emergency Savings: A Step on the Road to Retirement Security,” in 401(k) Specialist.
The material in this blog is presented for informational purposes only. Millennium Trust Company performs the duties of a directed custodian, and as such does not sell investments or provide investment, legal or tax advice.