70% of workers say they’d use an employer-sponsored emergency savings account — would one be right for you?

Core Insights - The importance of having an emergency fund is emphasized due to unexpected expenses that can arise in life [1][2] - A significant portion of Americans rely on credit cards for emergency expenses, which can lead to long-term financial pressure [2][3] - Many Americans lack emergency savings, with a notable percentage unable to afford expenses over $400 [3] Emergency Savings Accounts - A Pension-Linked Emergency Savings Account (PLESA) is a potential solution for Americans struggling to save for emergencies, with a high interest in such accounts among workers [4] - The PLESA was introduced as part of the SECURE 2.0 Act of 2022, allowing employers to sponsor emergency savings accounts for employees [5] - Automatic enrollment in a PLESA can facilitate savings, with contributions typically set at 3% or less of an employee's paycheck, while allowing for manual adjustments [6] - PLESAs have a maximum limit of $2,500, though employers may set lower limits, pausing contributions once the threshold is reached [7]