What funders should know about employer sponsored emergency savings accounts
For millions of workers, the retirement account is the emergency fund. When a car breaks down, or a medical bill arrives, it is the only pool of money within reach—and reaching it costs penalties, taxes, and decades of compounding. 37% of U.S. adults could not cover a $400 emergency using cash or savings, and 10% of non-retired adults tapped retirement savings for an emergency in the prior year. Hardship withdrawals rose in 2025 for the sixth consecutive year.
