Reduce 401(k) loans & withdrawals

When employees hit a rough patch, they often turn to their 401(k) to assist with an emergency. This undermines their ability to retire on time. A dedicated employer-sponsored Emergency Savings Account (ESA) helps your employees prepare for the unexpected.

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What's happening here?

401(k)s are often used for short-term needs

Employees don’t have adequate short-term savings

About half of Americans can’t cover a $400 emergency expense

Source: Economic Security Project (2022)

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Employers face administrative burden of processing 401(k) loans

Over one third of plan participants take out a 401(k) over a five-year period.

Source: National Bureau of Economic Research (2015)

Employees don’t receive money in time to cover emergencies

10 days for a 401(k) loan/withdrawal vs. two day ACH transfer for SecureSave.

Source: Investopedia

Employees' ability to retire is affected and employers pay for it

A one year delay in retirement age can cost an employer $50k per employee.

Source: Prudential (2019)

Customer story

A large family-owned American furniture and textile manufacturing company

Furniture and textiles manufacturer reduces 401(k) loans and withdrawals with ESA solution

With hundreds of employees spread between office, warehouse, and assembly lines, this furniture manufacturing company wanted a holistic financial wellness solution. There were employees borrowing money from their 401(k)s on a regular basis to pay for emergencies like new car tires or a water heater replacement.

  • Chose SecureSave to help employees build up emergency savings so they wouldn’t need to use their retirement savings when emergency situations occurred
  • Planned a phased rollout targeting the hardest hit employees first — helping those who needed it the most
Read more SecureSave customer stories
Help improve your 401(k) by offering an emergency savings solution
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How SecureSave helps

Complement your 401(k) program with a dedicated short-term savings solution

SecureSave encourages employees to save through an easy-to-use employer-sponsored emergency savings program. Employers can provide sign-up bonuses, savings matches, and milestone rewards for their employees to spur good savings habits.

  • No ERISA
  • Ability to withdraw funds at anytime
  • Funds are FDIC-insured
  • Flexible employer incentives

Reduce 401(k) loans and withdrawals with a SecureSave program like this

Example SecureSave Program

Biweekly paycheck match
$5
Signup bonus
$50
Milestone bonuses
$10
Per $500 saved

See the impact of your custom SecureSave program with our ROI calculator

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More use cases

Make your benefits more inclusive with financial wellness

Ensuring all employees have equal access to financial information and services helps them generate greater wealth and achieve financial stability — helping them feel and be more secure. 

Enhance recruiting and retention efforts

Many employers can’t find the qualified candidates they need for roles and employees are likely to leave their positions with shorter tenures than ever before.

Make your limited benefits budget count

Not all companies have the budget to provide extensive benefits to their employees. Certain benefits are required or expected like health insurance or retirement plans.

Improve employee financial wellness

Finding the right financial wellness solution is no easy task. Each employee has unique needs. Financial stress can lead to a reduction in work performance and higher turnover.

Help improve your 401(k) by offering an emergency savings solution

Contact us