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According to Haas-Winkelman, it is still too early to know the full results of the new option, as no participating employees have yet withdrawn. The Emergency Savings Tool is available to all workers on the MGM Studios payroll.
Participation has two big benefits for employees, said Haas-Winkelman. They can do more with their investments than with an ordinary savings account. In addition, they do not have to repay the money that they withdraw from their savings urgently.
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It is also too early to say to what extent this type of pension plan will be adopted.
Empower Retirement, part of the Great-West Life & Annuity Insurance Company, has tried to offer emergency savings in addition to its pension plans. The company no longer provides this functionality. Empower continues to provide educational resources on emergency savings, according to a spokesperson.
Because of the many leaks generated by the pension schemes, anything that would save people money in the event of an emergency could help reduce this problem, according to Aron Szapiro, director of the policy research at Morningstar.
"As we experiment, we will learn a lot about how hard they work," Szapiro said. "The idea is pretty promising."
Allowing employees to develop better savings habits can improve their productivity and ability to focus on work, according to Waldeck of Prudential.
"This is not just what employers want to do to get it right," Waldeck said. "It's also good for their business, which helps their staff be more resilient."
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