Employees without emergency savings are 2X more likely to tap retirement funds

Employers like Houston Methodist see positive outcomes for employees leveraging Fidelity’s Goal Booster℠

Fidelity Investments^® today shared new data highlighting how ongoing economic challenges are weighing heavily on American workers, with 3-in-4 employees citing the rising cost of living as one of their biggest stressors¹. With nearly half of workers saying they lack sufficient emergency savings², many employers are stepping up to help ease this financial burden through innovative workplace benefits.

“People often think emergency savings is meant for big, unexpected events – but for many workers, it’s everyday expenses, such as replacing a broken phone or getting new tires, that can throw their budget off,” said Kirsten Hunter-Peterson, vice president, Workplace Thought Leadership at Fidelity Investments. ”When people have a way to cover those costs, they’re less stressed, more focused, and better able to plan for the future.”

Without emergency savings, employees often turn to workplace retirement accounts as a way to cover unexpected costs. In fact, as of 2024, roughly 5% of employees have taken a hardship withdrawal from their retirement account compared to roughly 2% in 2018, and retirement plan loans have been on the rise since 2021³. As more employees dip into their retirement savings, the absence of emergency funds increasingly threatens both their long-term financial security and their ability to retire on time.

Employers are Stepping up to Help American Workers

Financial stress doesn’t just affect employees, it has a major impact on employers, too. Half of those who cite rising costs as a top stressor say it causes them to feel distracted at work. That distraction adds up, costing U.S. employers an estimated $183 billion in lost productivity each year. Recognizing the impact, more employers are stepping up by offering emergency savings benefits in the workplace.

“Emergency savings isn’t just a nice perk, it’s something employees truly need,” says Emily Kolle, vice president, Head of Fidelity Goal Booster℠. ”Having an effective way to handle everyday financial surprises can make a real difference on an employee’s financial wellness and in how they show up at work.”

Best Practices Drive Favorable Outcomes

Fidelity has seen strong results from employers who use Fidelity Goal Booster℠, a flexible emergency savings platform that can help people handle everyday financial surprises without having to resort to their retirement savings. In fact, early data shows employees using Fidelity Goal Booster are taking lower-dollar hardship withdrawals from their retirement accounts, regardless of income level, suggesting they are utilizing their emergency savings as a first line of defense for unexpected expenses and preserving a portion of their long-term savings.⁴ With 69% of plan sponsors expecting to expand financial wellness benefits such as emergency savings in the next three to five years⁵, companies such as Houston Methodist are already seeing positive impact for their employees.

“Introducing the Fidelity Goal Booster program was an easy decision for us,” said Janay Andrade vice president, Total Rewards at Houston Methodist. "It offers a straightforward, accessible way for our employees to build personal savings. The response has been overwhelmingly positive, and we’re proud to support their financial well-being through this initiative.”

A Smarter Way to Save

Fidelity Goal Booster℠ is a user-friendly digital experience that helps employees set up savings goals and guides them through the process from start to finish, including goal creation, account opening, funding set-up, and online tracking with behavioral nudges and milestone celebrations to keep users focused and motivated. For more information on how to start building up emergency savings, Fidelity offers several resources, including Viewpoints articles such as “Guide to emergency savings” and “How much to save for emergencies.”

To learn more about how emergency savings programs can help employees, visit www.Fidelity.com/GoalBooster.

About Fidelity Investments

Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $16.4 trillion, including discretionary assets of $6.4 trillion as of June 30, 2025, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 79 years, Fidelity employs more than 78,000 associates across the United States, Ireland, and India. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

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Past performance is no guarantee of future results.

Views expressed are of the date indicated, based on the information available at that time, and may change based on market or other conditions. Fidelity does not assume any duty to update any of the information.

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