How employer-sponsored rainy day savings accounts can help workers prepare for emergencies
Past Event
Many Americans live paycheck to paycheck, carry credit card debt, and have little or no money set aside for emergencies such as sickness, car or home repairs, job loss, or economic downturns. One consequence of this financial vulnerability is that many individuals use a portion of their retirement savings during their working years. Research suggests that for every $1 that flows into 401(k)s and similar accounts, between 30¢ and 40¢ leaks out before retirement. Helping American households build up their emergency savings would increase their financial security today and in retirement. A new working paper by John Beshears, James Choi, Mark Iwry, David C. John, David Laibson, and Brigitte C. Madrian explores the possibility of using employer-sponsored rainy day savings accounts to help workers prepare for an emergency.
On October 26, the Retirement Security Project at Brookings hosted a discussion on the practical considerations and challenges of these innovative employer-sponsored rainy day savings accounts. Following a presentation of the research by David C. John and Brigitte C. Madrian, a panel of experts reflected on these options and next steps for policymakers and employers.
Agenda
Presentation of Research
David C. John
Deputy Director - Retirement Security Project
Nonresident Senior Fellow - Economic Studies
Senior Policy Advisor, AARP Public Policy Institute
Brigitte C. Madrian
University of Pennsylvania
Aetna Professor of Public Policy and Corporate Management - Harvard Kennedy School
Research Associate - National Bureau of Economic Research
Panel Discussion
William G. Gale
The Arjay and Frances Fearing Miller Chair in Federal Economic Policy
Senior Fellow - Economic Studies
Director - Retirement Security Project
Co-Director - Urban-Brookings Tax Policy Center
Diane Garnick
Chief Income Strategist - TIAA
David C. John
Deputy Director - Retirement Security Project
Nonresident Senior Fellow - Economic Studies
Senior Policy Advisor, AARP Public Policy Institute
Brigitte C. Madrian
University of Pennsylvania
Aetna Professor of Public Policy and Corporate Management - Harvard Kennedy School
Research Associate - National Bureau of Economic Research
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