It’s Getting Hard For Workers to Save; Their Employers Are Trying to Help Them

Higher costs of living have made it harder for many employees to save, and some companies are offering benefits to help their workers create and maintain an emergency savings account.

Workers are struggling to grow their savings, and about 45% of workers said in a recent Federal Reserve survey that they do not have sufficient emergency savings. However, more employers have started offering emergency savings benefits to their employees, according to Fidelity Investments.

Why Is it So Hard to Save?

As the costs of living continue to rise, many workers are struggling to maintain their savings. The number of Americans living paycheck to paycheck increased by four percentage points from 2024 to this year, with 67% of workers reporting they are living this way in the 2025 PNC Bank Financial Wellness in the Workplace Report.

Many consumers had large savings accounts during the pandemic, boosted by COVID-19-era stimulus checks, and less spending during lockdown. Once the pandemic ended, however, inflation began to run hot, and many people began to use up what they had saved up to cover increased costs.

Another bout of inflation this year, mainly stemming from tariffs first implemented in April, has started eroding savings accounts again. As of August, the amount of savings that Americans have been able to accumulate from their disposable income is lower than it was in January 2020, before the pandemic, according to data from the Bureau of Economic Analysis.

Companies Offering Savings Accounts Are Helping Their Employees and Their Bottom Line

In 2024, 77% of employers reported that their company either currently offers or plans to offer an emergency savings account (ESA) for its employees within the next year or two. About four in ten companies offered ESAs with incentives, such as matching contributions, sign-up bonuses, and milestone rewards, according to a 2024 survey from the Employee Benefit Research Institute.

And these savings accounts are helping. Employees enrolled in their employer’s ESA program typically take smaller hardship withdrawals from their retirement account, according to Fidelity data.

“Emergency savings isn’t just a nice perk, it’s something employees truly need,” Emily Kolle, vice president and head of Fidelity Goal Booster, an emergency savings platform for employees, said in a press release. ”Having an effective way to handle everyday financial surprises can make a real difference on an employee’s financial wellness and in how they show up at work.”