Retirement-linked Emergency Savings: Lessons from the US
In this online discussion with friends from across the pond we explored the journey to the implementation of the SECURE 2.0 Act, its impact so far and what the UK can learn from their example. This live and interactive webinar took place on Monday 28 April.
Since the beginning of our work on short-term savings, Nest Insight has been looking across the pond to the US, where forward-thinking organisations have also been working to increase the financial security of low- and moderate-income households.
In 2022 US Congress passed legislation building emergency savings provisions into the retirement system. The SECURE 2.0 Act established the concept of a Pension-Linked Emergency Savings Account with an indexed value of up to $2,500 and separately enabled $1,000 penalty-free access to pension savings in case of a financial emergency. The landscape of both in-pension and out-of-pension workplace emergency savings solutions has been evolving in recent years with innovation from both providers and employers.
In this online event we heard from experts from the US system about the legislation, how it is playing out in practice and to drew out potential lessons for the UK’s financial resilience agenda.