One-Quarter of Employees Tap Retirement Savings for Emergencies, per Survey

Financial stress continues to drive retirement plan leakage, as more than half of surveyed U.S. workers report above-average financial stress.

According to the 2026 Financial Stress Survey by SecureSave, a workplace emergency savings account company, 22% of respondents reported having no emergency savings at all, while 56% reported experiencing moderate to high financial stress.

“For millions of workers without a financial safety net, a broken appliance, unexpected medical bill or car repair is a setback that can force difficult choices, from delaying medical care to taking on debt or tapping retirement savings,” said Devin Miller, SecureSave’s co-founder and head, in a statement.

Financial stress can affect long-term savings and hinder workers’ ability to cover everyday needs. Forty-one percent of employees reported skipping necessary expenses—including medical care, meals, rent and car repair—over the past six months due to a lack of emergency savings.

Separate research from the Certified Financial Planner Board of Standards Inc. found investors feeling more optimistic about their finances, despite continued concerns about inflation and affordability.

According to the CFP Board’s Summer 2026 CFP Professionals Sentiment Indices, professionals reported their clients to be more optimistic about their financial outlook this summer than three months ago. This season, 50% of clients showed a positive financial outlook, compared with 36% in the spring. Those feeling negative about finances decreased to 8% this summer from 15% in the spring.

However, even with increased optimism, CFP professionals still found clients concerned about inflation and affordability. The report noted that worries about the cost of living were particularly relevant among clients closer to retirement.

Effects on Retirement

SecureSave’s findings suggest that financial stress affects employees’ ability to save for retirement. The survey found that 25% of employees have already reduced, paused, borrowed from or withdrawn from their retirement savings to cover expenses.

Such withdrawals, often referred to as retirement plan “leakage,” remain a persistent challenge for the retirement industry.

Recently, the “Father of the 401(k),” Ted Benna, told PLANADVISER about his latest saving plan designed to address employees’ hardship withdrawals and emergency savings needs: Radish Plan Inc.

Justin Boeckman, co-founder of the Radish Plan, says it is meant to build a safety net for employees.

“If I get a flat tire [or] my refrigerator breaks down, I have something built so that I don’t have to worry about, ‘Do I have to take a loan against my 401(k)? Do I have to put this on a credit card?’” Boeckman says. “We’re building that emergency savings account for those employees while generating a profitability center for the employer as well.”

SecureSave also found that 23% of employee respondents reported saving less for retirement than in the year prior. When it comes to retirement timeline, 20% expected to retire at age 70 or older, and 14% said they may never retire.

SecureSave surveyed 1,028 U.S. employees aged 18 through 65 online in June.