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Liz Weston: Someday your boss could help you save for emergencies
Companies have long helped their workers save for retirement through 401(k)s and other workplace plans
When I wrote about employer-provided emergency savings accounts four years ago, the idea was still pretty novel. Some companies were experimenting with ways to help their workers save for short-term needs, but the concept wasn’t even on the radar for many employers.
What a difference the pandemic made. Millions were thrown out of work with little warning, and few had the financial reserves to survive even a few months of unemployment. Big employers, and lawmakers, took notice, says Claire Chamberlain, global head of social impact for investment manager BlackRock. The result: Hundreds of thousands of workers now have options to build emergency savings through their employers, and Congress passed laws to encourage more companies to add short-term savings options.
“I think a lot of people woke up,” Chamberlain says.
PANDEMIC HIGHLIGHTED AMERICANS’ FINANCIAL FRAGILITY