Save for retirement or build up emergency funds? Helping employees do both

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Financial security is often discussed in terms of the three-legged stool of savings. The first leg being personal savings, the second leg being company retirement funds, and the third leg coming from the government, i.e. Social Security.

Within the personal savings leg there is also the consideration of emergency savings and how employers can assist with that. With the passage of the emergency savings provision within the SECURE 2.0 Act of 2022, employers are starting to look at emergency savings within the workplace. A new report from Commonwealth and the Defined Contribution Institutional Investment Association’s (DCIA) Retirement Research Center shows that these types of plans can really help low to moderate income earners.