Emergency savings ranks as the major savings goal for US workers, according to new research by Fidelity Investments.
Half of the respondents to a survey said that lack of emergency savings is causing them to be distracted at work.
“While Americans have struggled to maintain emergency savings for years, economic and world events like inflation, market volatility and the pandemic have exacerbated the issue. Today, the majority of US adults (57%) say they are currently unable to afford a $1,000 emergency expense,” Fidelity noted.
The good news is many employers are stepping up to help workers by providing benefits related to emergency savings.
“This growing focus, coupled with recent legislation enabling employer involvement, is driving forward-thinking employers to help employees better prepare for those rainy days,” said Kevin Barry, president of Fidelity Workplace Investing.
More than 15,000 employers are working with Fidelity to help employees achieve their short-term savings goals.
Austin, TX- based Whole Foods, for example, is launching an emergency savings program in January to help its team members.
“Team members will be able to set up an automatic deduction from their paycheck each pay period and access the funds when they need them most,” according to Fidelity.
A program like that is old news for Seattle, WA-based Starbucks. The specialty coffee retailer began the My Starbucks Savings in September 2022 to help employees save for a rainy day.
