Workers Are Struggling to Save Money; Some Employers Are Trying to Help

Core Insights - Rising living costs are making it increasingly difficult for employees to save, prompting companies to offer benefits aimed at helping workers establish and maintain emergency savings accounts [1][7]. Group 1: Employee Savings Challenges - Approximately 45% of workers lack sufficient emergency savings, as indicated by a recent Federal Reserve survey [2]. - The percentage of Americans living paycheck to paycheck has increased by four percentage points from 2024 to 2025, with 67% of workers reporting this situation [3]. - Many workers are resorting to credit card debt or loans to cover unexpected expenses due to insufficient savings [4]. Group 2: Impact of Inflation - Post-pandemic inflation has eroded savings, with disposable income savings lower than pre-pandemic levels as of August [6]. - Many individuals depleted their pandemic-era savings to manage rising costs after the end of lockdowns [5]. Group 3: Employer Initiatives - In 2024, 77% of employers reported offering or planning to offer emergency savings accounts (ESAs) for employees within the next couple of years [8]. - About 40% of companies providing ESAs are incorporating incentives such as matching contributions and sign-up bonuses [8].