23% of Americans have $0 savings: Helping workers do the math, save for retirement

A quarter (23%) of Americans have no savings at all, and an additional 17% have less than $500 saved, according to the latest GOBankingRates survey data. To help address this critical savings issue, GOBankingRates is publishing a series of research and educational content throughout this month in honor of National Savings Day on October 12.

One of the toughest savings challenges for Americans is the rising cost of homeownership. The savings needed for millennials to buy a first home is drastically different than boomers, according to GoBankingRates. In 1970, homeowners needed $3,400 for a 20% down payment on the average home, compared to $71,688 in 2024. Without adjusting for inflation, this is an increase of more than $68,000.Hawaii and California experienced the biggest cost increase: homebuyers need to save over $100,000 more in 2024 than 1970.

We talked to Rudri Patel, Personal Finance Expert and Senior Writer at GOBankingRates, about how employers can foster smart savings habits in employees with financial wellness programs, automated savings plans and emergency savings accounts, as well as 401(k) education.

Q: How can employers benefit from National Savings Day to help employees save money throughout the month?

A: National Savings Day is the perfect opportunity for employers to host financial workshops, promote information regarding corporation matching programs, and remind employees about student loan assistance options. Employers can also remind employees about emergency savings accounts and automated savings plans. These reminders may sound simple, but they can go a long way towards helping employers save money and set themselves up for financial success.

Q: How can employers foster smart savings habits in employees?

A: Financial education programs, webinars, and employer matching programs are great ways to incentivize employees to save more. Promoting campaigns about retirement savings and providing apps for employees to track savings and set financial goals can also boost smart savings habits. Additionally, employers can provide employees free or discounted access to credit monitoring services to promote sound financial behavior. 

Q: What kind of financial wellness programs should employers be offering employees?

A: Employers can implement several wellness programs to protect employees’ short-and long-term financial futures. Retirement savings plans like a 401(k) plan, an emergency savings program, and student loan assistance are practical ways an employer can help. Other options include workshops on budgeting, one-on-one financial counseling, and access to digital tools that automate savings to help employees track their financial goals.

Q: What can employers do to make employees aware they are leaving money on the table by not contributing to a 401(k)?

A: There are several possible strategies employers can use to nudge their employees to contribute to their 401(k). When an employee joins a company, an employer can include 401(k) education in onboarding. Employers can use simple communication in email messages and newsletters reminding employees to “not leave free money on the table.” Some other options include providing personalized savings projections to show employees their potential earnings when they contribute.

Related: TIAA’s ‘Bill of Rights’: A call to action during National Retirement Security Month

Q: Would employer emergency savings programs help employees save better?

A: Yes. Linking an employee’s emergency savings account (ESA) to payroll allows for automatic deductions directly from paychecks. Employees are automatically saving without thinking about it. An ESA is also a safety net for employees, so they don’t have to worry about getting a loan or charging an unexpected expense on a high-interest credit card.