Emergency Relief Benefits Prove Crucial as Saving Struggles Persist

Emergency savings are harder to come by as they become more essential for employees’ financial well-being, according to recent reports from WalletHub and Canary.

In its recent “Annual Emergency Relief Report,” employer emergency relief platform Canary found that 48% of its grantees who were surveyed said the grant did not fully cover their financial needs, and 57% still needed additional resources.

However, after receiving the grant, 93% of recipients reported feeling better about their employer, and nearly three in four surveyed grantees said the relief provided time and space to plan next steps.

“Common life events like a medical bill or car repair are pushing households into crisis. Inflation may have cooled on paper, but wages have not caught up to the real cost of essentials,” said Rachel Schneider, Canary’s co-founder and CEO, in the report. “Emergency relief is the first line of defense.”

According to the report, without the short-term liquidity needed for emergencies, employees were left with slim options, resulting in fewer 401(k) contributions or even depletion of retirement savings.

“Among employees who received emergency grants through Canary’s platform, the share who reported they would have otherwise tapped retirement savings saw a 33% year-over-year increase, based on post-grant surveys administered directly to recipients,” said Catherine Scagnelli, Canary’s head of growth, in an email to PLANADVISER.

In WalletHub’s Emergency Savings Survey, two-thirds of respondents said the affordability crisis affected their emergency savings, and almost 20% said they could not come up with $1,000 cash within 24 hours to save a loved one’s life.

Similarly, Vanguard’s upcoming report, “How America Saves 2026,” found that an average of 6% of its retirement plan participants in 2025 used hardship withdrawals, if offered, from 401(k) plans. That is 25% more than the 4.8% who used hardship withdrawals in 2024 and two-thirds higher than the 2023 percentage (3.6%), per Vanguard.

Working emergency savings into existing or new employees’ benefits can be part of a holistic approach to financial wellness, according to experts.

“Advisers can help employees shift focus from debt reduction to emergency savings, once balances are paid down, or frame long-term investing decisions in a way that reduces anxiety and builds confidence,” says John Brett, Voya’s president of wealth management. “When paired with workplace benefits, this kind of ongoing, relationship-based guidance helps financial wellness programs feel relevant, actionable and supportive—not overwhelming.”

WalletHub collected answers from 200 respondents in an online survey conducted February 2 through February 6. Canary analyzed proprietary data collected through their Grant Circle platform in 2025, which included real grant applications, disbursements and post-grant recipient surveys.