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Press release content from PR Newswire. The AP news staff was not involved in its creation.

NEARLY 9 IN 10 AMERICAN WORKERS LOOK TO EMPLOYERS TO BUILD RETIREMENT SAVINGS DURING THESE UNCERTAIN TIMES

December 15, 2021 GMT
DailyPay Logo (PRNewsfoto/DailyPay)
DailyPay Logo (PRNewsfoto/DailyPay)
DailyPay Logo (PRNewsfoto/DailyPay)

NEW YORK, Dec. 15, 2021 /PRNewswire/ -- A new survey, commissioned by the Funding Our Future coalition and DailyPay, and conducted online by The Harris Poll among over 2,000 US adults, reveals that the pandemic and subsequent recession have inflamed the savings gap in the United States. Thirty-six percent of Americans with household incomes below $50,000 report they now have less in savings than before the pandemic hit, compared to only 13% who have more. This is juxtaposed with the 41% of Americans with household incomes $100,000 or more who find themselves with more savings today and only 20% who have less compared to before the pandemic. Additionally, more than half (58%) of Americans say they are anxious about their current financial situation. This financial anxiety is greatest among younger Americans (those aged 18-34) (71%), renters (70%), and those with household income under $50,000 (67%).

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As Americans look for opportunities to build savings and plan for the future, a vast majority are turning to their employers for assistance. Eighty-seven percent of employed Americans say that it is very important (54%) or somewhat important (32%) that their employer offers a retirement savings program, such as a 401(k) account. These benefits are so important that 67% of employed Americans—and 79% of employed parents of children under 18—say that they would be very or somewhat likely to switch employers if their current employer did not offer a retirement savings program.

Financial wellness benefit programs can also help Americans save and feel less stressed about finances. Research shows that employees with access to earned wages, for example, are less likely to take out payday loans or incur overdraft fees. This type of workplace benefit has been offered by a growing number of employers in recent years and enables employees to determine when they get paid, rather than waiting for a pre-set, scheduled payday. In fact, according to the Funding Our Future and DailyPay/Harris Poll survey, many employed Americans (59%) say that they would benefit from getting paid more frequently at work than they currently do, including 70% of hourly workers ages 18-55.

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The Funding Our Future and DailyPay/Harris Poll research shows that government assistance may also be helping some parents save during this time of financial hardship. Thirty-six percent of parents who received monthly Child Tax Credit (CTC) payments, which rolled out beginning in July this year as part of the American Rescue Plan Act, have put at least some of the money into savings. Half (50%) of parents who received the CTC used at least some of the funds to pay for essentials (e.g., rent, utility bills, etc.).

“Many Americans continue to face financial hardship, making it difficult to save for the future,” said Kara Watkins, Senior Coalition Manager for Funding Our Future. “This survey highlights the need for both public and private solutions to get Americans back on the road to financial security.”

“This research further illustrates the expectations and responsibilities of employers to provide impactful benefits to employees,” said Matthew Kopko, Vice President of Public Policy for DailyPay. “A majority of employed Americans saying they would be likely to leave an employer for better financial benefits is extremely powerful insight for companies around the country aiming to better attract, retain and engage their employees.”

About Funding our Future
Funding Our Future is a national coalition of more than 60 partners across the nonprofit, academic, trade association, and corporate sectors dedicated to improving retirement security for all Americans. The alliance informs the public about the barriers to building retirement security and calls on policymakers to make strengthening retirement policies a top priority.

About DailyPay
DailyPay, powered by its industry-leading technology platform, is on a mission to build a new financial system. Partnering with America’s best-in-class employers, including Dollar Tree, Berkshire Hathaway and Adecco, DailyPay is the recognized gold standard in on-demand pay. Through its massive data network, proprietary funding model and connections into over 6,000 endpoints in the banking system, DailyPay works to ensure that money is always in the right place at the right time for employers, merchants and financial institutions. DailyPay is building technology and the mindset to reimagine the way money moves, from the moment work starts. DailyPay is headquartered in New York City, with operations based in Minneapolis. For more information, visit www.dailypay.com/press.

Survey Method
This survey was conducted online within the United States by The Harris Poll on behalf of DailyPay between November 30 - December 2, 2021, among 2,038 US adults ages 18+, among whom 1,009 are employed full-time/part-time, and 498 are hourly workers ages 18-55. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact david.schwarz@dailypay.com.

Media Contacts
David Schwarz
Email: david.schwarz@dailypay.com

Gabriella Lourie
Email: gabriella.lourie@dailypay.com

Kara Watkins
Email: kwatkins@bipartisanpolicy.org

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SOURCE DailyPay