Employers and record keepers can play a key role in improving the financial security of U.S. workers through initiatives that enable short-term, liquid savings. With 37% of Americans unable to manage a $400 emergency with savings, and lower-income households, women, and Black households disproportionately affected, the issue of emergency savings is an urgent one for much of America.

The chronic stress associated with worrying about short-term finances is disruptive for employees, resulting in lower productivity at work, which costs companies up to $250 billion per year. Those employees who have retirement savings often use them as de facto emergency funds, further disrupting their long-term financial goals.

Addressing the issue of short-term savings has benefits not only for workers, but for employers and record keepers alike. Employers and record keepers who partner to provide accessible savings vehicles for employees can increase employee engagement, strengthen existing benefits programs, increase employee savings rates, and reduce early retirement withdrawals.