According to the “2021 Workplace Wellness Survey,” conducted by the Employee Benefit Research Institute and independent research firm Greenwald Research, having savings in case of an emergency is one of the top cited sources of financial stress. More than half (54%) of employees report their retirement savings are the only significant emergency savings they have. You can help them by providing a simple flyer that focuses on the following key points (your plan advisor and recordkeeper should be able to help with this):
- Create an automatic savings account and aim to build up to 3–6 months of living expenses
- Keep separate from your checking account
- Ensure there are no (or low) transaction fees; no penalties for withdrawals
- Verify interest earnings on the balance (a little something is better than nothing).