Three quarters of employees say that financial concerns affect their motivation at work according to the CAPTRUST study, costing employers $183 billion annually in lost productivity (Fidelity 2025 report).

Why are employees so financially stressed? Well, Empower completed a study that showed 29% of Americans say they can’t cover an emergency expense more than $400. The median emergency savings for working Americans is just $500. Here are some more stats to drive home the point that American’s are under saving:

• 32% of American workers have no emergency savings
• 64% say building emergency savings is a top financial priority
• 52% regret not starting an emergency fund sooner

So what can employers do?

401(k)s and other workplace benefits play a huge role in employee’s financial success. Not only do these benefits offer some emergency savings, but they also encourage a habit of saving for their employees. I know that many people I talk to day to day have no savings outside of their workplace retirement plan. They often look back on their retirement plan through work as their saving grace.

Now, there are tradeoffs to using retirement savings for emergencies such as the loss of that money compounding until retirement, but 401(k)s offer many options to help with emergency expenses. The most common emergency savings benefit is the 401(k) loan. There are also benefits such as $1,000 penalty free withdrawals for personal emergencies, hardship withdrawals, domestic abuse withdrawals, natural disaster, and more.

The 401(k) benefit you offer to employees goes well beyond retirement. Not only are these plans crucial in helping your employees prepare for retirement, but they also are key elements in reducing your employees’ financial stress. When life gets hard, having savings to support you and your family is imperative. That isn’t the reality for far too many Americans- but offering a 401(k) benefit to your employees is a way that you can have a real impact on the financial success of your valuable team members.

Schedule a free consultation to learn the best way to add impactful benefits for your employees.

1. ^{https://www.captrust.com/wp-content/uploads/2026/01/CAPTRUST-at-Work_Financial-Wellness-Survey_2026_FINAL_STAMPED_5083304.pdf}
2. ^{https://www.plansponsor.com/surveys/2026-dc-survey-plan-benchmarking}
3. ^{https://www.captrust.com/wp-content/uploads/2026/01/CAPTRUST-at-Work_Financial-Wellness-Survey_2026_FINAL_STAMPED_5083304.pdf}
4. https://www.ebri.org/content/2024-ebri-financial-wellbeing-employer-survey–employers-see-financial-wellness-benefits-as-a-tool-to-improve-worker-satisfaction-and-productivity#:~:text=Emergency%20Savings
5. https://www.empower.com/the-currency/money/safety-net-emergency-savings-research
6. https://www.fidelityworkplace.com/s/emergency-savings