Business
4X in Four Years: BlackRock Initiative Helps Drive Nearly $8 Billion in Emergency Savings for American Workers
4X in Four Years: BlackRock Initiative Helps Drive Nearly $8 Billion in Emergency Savings for American
About this update from Blackrock, Inc.
BlackRock’s Emergency Savings Initiative (ESI) has helped generate nearly $8 billion in emergency savings and expanded access to emergency savings solutions to more than 22 million Americans, according to a new BlackRock ESI Impact Report. Supported by The BlackRock Foundation’s $50 million philanthropic commitment, together with nonprofit partner Commonwealth, the initiative has nearly quadrupled net new savings from $2 billion in 2022. Since its initial launch in 2019, ESI has stood up more than 60 projects designed to strengthen household financial resilience and address a critical challenge facing American workers. Roughly 40% of U.S. adults are unable to cover a $400 unexpected expense1, leaving many families vulnerable to financial shocks and more likely to tap long-term investments to meet short-term needs. The report brings together findings from seven years of research, employer pilots, and cross-sector collaboration demonstrating how emergency savings can strengthen retirement outcomes and support long term wealth building. The research finds that people with access to emergency savings are more likely to participate in retirement plans, less likely to withdrawal from retirement savings early, and better able to stay invested and pursue long-term wealth-building goals. “Too many Americans are forced to choose between managing an unexpected expense today and saving for their future tomorrow,” said Claire Chamberlain, President of The BlackRock Foundation. “Through partnerships and collaborations across the public, private, and nonprofit sectors, BlackRock’s Emergency Savings Initiative has helped expand access to savings solutions that strengthen financial stability, protect retirement savings, and help more people build lasting financial security.” ESI has collaborated with employers, financial institutions, payroll providers, retirement plan providers, and policymakers2 to embed emergency savings tools into the workplace systems Americans already use to manage their financial lives. The workplace has emerged as one of the most effective and scalable channels for helping workers build emergency savings through payroll integration, retirement plans, and employer-sponsored benefits. Collaborators have included The Fresh Market, GXO, Starbucks, Truist Bank, Spruce built by H&R Block, and Voya Financial. The initiative’s research has also inform...