What’s on our Christmas list this year? Two front teeth. We got them knocked out by the Walmart Karen final boss on Black Friday. 🦷👊 We saw that big screen first!
If your employer could help you stuff that emergency piggy bank, that would be big, right? 🐖 The good news: employer sponsored emergency funds are gaining traction. 📈
Here’s Five Fast Facts on employer-sponsored emergency funds:
- 🙏 Saving Grace - Many Americans count on their employer-sponsored retirement savings plans (401(k)s, IRAs) to carry them through their golden years. In fact, as many as 70% of private sector workers have access to one and 50% participate.
- 💰 Tap Dance - Unfortunately, tough times and a crazy economy have forced households to tap those funds early to make ends meet. Hardship withdrawals have jumped from from 1.7% in 2020 to 4.8% in 2024.
- 💭 Penny For Your Thoughts - When folks have enough saved in their emergency funds, they’re less likely to make early withdrawals from their retirement plans. According to research, having just $2K saved reduces early retirement account taps by 17%.
- 💼 Get with the Program - To help boost employee emergency funds, more workplaces are offering support. Thanks to the SECURE 2.0 Act of 2022, employers can offer Pension-Linked Emergency Savings Accounts (PLESAs). Through a PLESA, employees make post-tax contributions, capped when the account balance hits $2,500. Withdrawals for emergencies are penalty-free.
- 💸 Raise the Bar - If $2,500 seems light for today’s world, you’re not alone. A bipartisan bill called the Emergency Savings Enhancement Act of 2025 was introduced this month. It’s aiming to raise the contribution cap from $2,500 to $5,000.
🔥Bottom line: Dear boss man, PLESA give us some more money. While you’re browsing the headlines this week, pay attention to the charts you see. Some of them might be trying to sell you a bogus story. How do you tell the difference between B.S. and the real deal? Lucky for you, we’ve got an article for that!
How fat is your emergency fund?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
