Employers Are Helping Workers Ward Off Financial Catastrophe By Offering This Helpful Perk More companies have started offering assistance with saving for unexpected expenses.
By Madeline Garfinkle Edited by Jessica Thomas
Opinions expressed by BIZ Experiences contributors are their own.
From four-day work weeks to generous sign-on bonuses, companies have been doing all they can to attract and retain workers in a competitive market. Now, with rising inflation putting millions of Americans under financial strain, a new perk could be a game-changer for countless employees: assistance in saving for unexpected expenses.
These "rainy day" funds are intended to help employees have a savings cushion in the instance of unexpected financial setbacks.
Related: Are You Prepared for a Major Medical Crisis? Here's How a Crisis Can Affect You Financially
According to the Consumer Financial Protection Bureau, about a quarter of consumers have virtually no savings set aside for emergencies, which could ultimately lead to debt and withdrawal from retirement funds. According to research from Urban Institute, even small cushions between $250 and $700 can prevent catastrophes like eviction.
Starbucks is the most recent employer to offer saving options to workers, The New York Times reported, and smaller start-ups like SecureSave have begun offering tools to help workers save.
Related: Young Workers Are Not Saving For Retirement, According to a New Report
SecureSave uses a partner bank to transfer after-tax funds to worker savings accounts, which employees can track and transfer when needed using a mobile app. The company charges employees between $1 and $3 a month, and the average worker saves $38 per paycheck.
Although the amount might not seem significant, the savings add up, and unlike long-term saving, individuals are less likely to panic when faced with unexpected catastrophes or momentary rises in the cost of living due to inflation when they have a "rainy day" fund set aside already. The benefit of saving this way means employees don't see the money leave their paychecks, so they're less likely to miss it.
Although employee perks like flexible working schedules and bonuses might seem enticing, in today's current state of economic uncertainty, access to savings through an employer is an increasingly competitive benefit.
Related: Want to Hit Your Retirement Savings Goal Early? 5 Tips for 2022
