Workplace benefits are evolving. A new survey from the Employee Benefit Research Institute shows that 77% of employers plan to offer emergency savings programs in the next two years. This marks a clear move toward prioritizing financial wellness for employees.
But what’s driving this trend? Rising costs of living, financial stress, and increasing healthcare expenses have created an environment where employees need immediate financial relief more than ever. At the same time, programs like SECURE 2.0 have provided new ways to implement emergency savings solutions, making them more appealing to employers.
So why are these programs gaining traction, and how can organizations implement them effectively? Let’s explore the trends, benefits, and practical steps for making emergency savings accounts a part of your benefits strategy.
Why Financial Wellness Matters More Than Ever
Employee financial stress has become more pressing in recent years. Rising costs of living, combined with the after-effects of the pandemic, have left many employees struggling to make ends meet. According to Bankrate’s 2024 Annual Emergency Savings Report, only 44% of U.S. adults can cover a $1,000 emergency expense without borrowing. This leaves most people vulnerable to financial shocks that affect their personal and professional lives.
Employers are recognizing the ripple effects of this situation. Financially stressed employees are often less productive, more likely to miss work, and more likely to leave for higher-paying jobs. This has led to a growing emphasis on financial wellness as a tool to improve job satisfaction and retention. 83% of employers surveyed said their financial wellness initiatives positively impacted employees’ mental, emotional, and social well-being.
SECURE 2.0, a legislative framework that facilitates the integration of emergency savings into workplace benefits, has also been pivotal. By allowing features like penalty-free 401(k) withdrawals for emergencies, the legislation provides new ways to address employee financial needs without compromising their long-term savings.
What Emergency Savings Programs Look Like
The 2024 EBRI survey highlights how employers are focusing on financial wellness programs that include emergency savings, managing healthcare costs, and supporting mental health. These programs aim to help employees make smarter financial decisions while complementing 401(k) plans. Employers are also encouraging savings by linking them to benefits like improved productivity and job satisfaction.
Emergency Savings Accounts (ESAs) outside of 401(k) plans are becoming popular for their ease of use and ability to protect employees from financial challenges without affecting their retirement savings. These ESAs are a key part of a balanced financial wellness strategy for today’s workplaces
Lessons From Early Adopters
Companies implementing emergency savings programs have shared valuable lessons on what drives success. Those that started with pilot programs before scaling up were able to pinpoint areas for improvement and refine their approach.
One major takeaway is the importance of communication. Employees are more likely to participate when they understand how the program works and how it benefits them. Employers who invested in clear, consistent messaging saw higher participation rates and greater overall satisfaction with their financial wellness initiatives.
Participation incentives are also significant. According to the EBRI survey, employers offering incentives, such as matching contributions, reported better engagement than those who didn’t. Matching contributions signal that the company is invested in its employees’ financial well-being, promoting trust and encouraging participation.
Another lesson from early adopters is the importance of aligning these programs with broader benefits strategies. Companies that integrated emergency savings with existing retirement or health benefits saw more substantial results, as employees viewed the program as part of a comprehensive financial support system.
Steps To Implement Emergency Savings Programs
If your organization is planning to introduce emergency savings programs, here’s how to get started:
- Assess employee needs: Conduct surveys or focus groups to understand your workforce’s financial challenges. This ensures the program is designed to address real needs.
- Choose the right structure: Determine whether your organization's goals require a standalone savings account, an in-plan option, or a combination of both. Consider how features like payroll deductions or matching contributions can boost participation.
- Pilot the program: Start small by introducing the program to a specific department or group. Use this phase to gather feedback and make adjustments.
- Communicate effectively: Educate employees about the program’s benefits and how to participate. Use multiple channels like email, workshops, and manager briefings to ensure the message reaches everyone.
- Monitor and adjust: Track participation rates, withdrawal patterns, and employee feedback. Use these insights to refine the program and demonstrate its impact to leadership.
By taking these steps, employers can create programs that resonate with employees and deliver tangible results.
Measuring Success
Tracking specific metrics is crucial to evaluate the effectiveness of emergency savings programs. These include:
- Participation rates: Are employees enrolling in the program? Higher rates often indicate effective communication and design.
- Contribution growth: Are participants increasing their contributions over time? This shows growing engagement and trust in the program.
- Reduced financial stress: Use employee surveys to measure changes in financial well-being and stress levels.
- Retention and productivity improvements: Monitor turnover rates and productivity metrics to assess the broader impact on organizational performance.

Cost-benefit analyses can also help quantify the program’s value. For example, reduced turnover can translate to significant recruitment and training cost savings. Additionally, understanding how emergency savings programs reduce 401(k) hardship withdrawals or improve absenteeism can further strengthen the business case.
The Road Ahead
As emergency savings programs continue to gain momentum, their impact becomes clear. They address immediate financial needs while complementing long-term benefits like 401(k)s. More importantly, they signal to employees that their financial well-being matters—a message that resonates in today’s competitive job market.
Employers can strengthen and financially safeguard their workforce by thoughtfully implementing and measuring these programs. Sunny Day Fund offers a practical and impactful solution for companies ready to start prioritizing financial wellness and drive organizational success.