It has become more difficult for workers to save; Employers are trying to help them

The rising cost of living has made it difficult for many employees to save, and some companies offer benefits to help their workers establish and maintain an emergency savings account.

Workers are struggling to grow their savings, and about 45% of workers in a recent Federal Reserve study said they do not have enough emergency savings. However, more employers are starting to offer emergency savings benefits to their employees, according to Fidelity Investments.

Why is it difficult to save?

As the cost of living continues to rise, many workers are struggling to maintain their savings. The number of Americans living paycheck to paycheck rose four percentage points from 2024 to this year, with 67% of workers reporting they live that way in PNC Bank’s 2025 Workplace Financial Wellness Report.

Many consumers had large savings accounts during the pandemic, buoyed by COVID-19-era stimulus checks and reduced spending during the lockdown. But once the pandemic ended, inflation began to rise, and many people began using what they had saved to cover rising costs.

Another bout of inflation this year, mainly caused by tariffs first implemented in April, has begun to eat away at savings accounts again. As of August, the amount of savings 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 that offer savings accounts help their employees and their bottom lines

In 2024, 77% of employers reported that their companies either currently offer or plan to offer an emergency savings account (ESA) to their 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 bonuses, according to a 2024 survey by the Employee Benefits Research Institute.

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

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