Even Launches Employer-Sponsored Emergency Savings to Incentivize Workers to Build $500 Rainy Day Funds
Even, a leading earned wage access platform designed to provide financial stability and flexibility to US employees, today announced the launch of a new savings solution that gives employers the ability to design and manage their emergency savings programs. This emergency savings solution, which is focused on helping workers build an emergency fund, leverages Even’s expertise in improving the financial health of employees at scale. Even members have already set aside more than $200M for emergencies, medical costs, and other unexpected expenses.
Emergency savings have never been more important. Nine out of 10 employees surveyed by the National Endowment for Financial Education said that the Covid-19 pandemic was causing stress on their personal finances and that lack of savings was the top stressor. Employers are noticing the impact of that stress. One-third of employers surveyed by Willis Towers Watson reported that financial stress is creating workforce challenges. (That’s up from 26% three years ago, according to this December 2020 report.) These challenges can include reduced productivity, lower engagement, and higher turnover, which can cost employers millions.
Leading employers are already prioritizing emergency savings as part of a broader strategy to directly improve financial security among their workforce and indirectly increase productivity and retention. With Even’s employer-sponsored savings solution, for example, companies can incentivize employees by offering up to 10% APY for the first $500 saved and a competitive interest rate thereafter. The program works similarly to most employer-sponsored retirement plans. It puts savings plans on autopilot by directly depositing money from employee paychecks.
According to an oft-cited statistic from the Federal Reserve, 40% of people in the United States are unable to cover a $400 emergency. “Workers need help building emergency savings so it’s encouraging that more employers are adding emergency savings options in addition to the more standard 401K plans,” said Matt Bahl, VP of Workplace at Financial Health Network. “Savings — for both short term and longer-term goals — are important builders of overall financial health.”
Even CEO David Baga explained that with the addition of this new savings solution, Even’s platform can help workers improve their financial health no matter where they are on their journey. “It is very empowering to know that you have the emergency savings necessary to handle life’s curve balls — as is knowing that you can tap into some of the wages you’ve already worked hard to earn, even if payday is still days away,” said Baga. “We’re pleased to work with forward-thinking employers who are prioritizing financial health and empowering their workers with the information and tools they need to make better financial decisions. The Covid-19 pandemic was a wake-up call. Employers realized they need to help workers build the financial resilience and savings to deal with life’s blows.”