Emergency savings: A key addition to a company retirement plan

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A new report from Commonwealth has suggested that providing emergency savings solutions could be an important addition to a company’s benefits plan. The report noted that many workers and companies are re-examining financial planning and resources, and that in addition to saving for retirement, having an emergency savings plan could be valuable for low-to-moderate income (LIM) workers.

“Millions of people lack access to high-quality, low-cost tools to save for the unexpected,” the report said. “Providing an emergency savings account through the workplace is foundational to increasing financial security and ultimately building wealth for workers earning LMI. The employer sponsors and recordkeepers of defined contribution workplace retirement plans are uniquely positioned to provide quality emergency savings products to plan participants.”