Best New Ideas in Money: The ‘sidecar’ plan that could soon be attached to your 401(k)

While economists disagree over whether there’s a retirement-savings crisis in the U.S., one thing is clear: There’s an emergency-savings crisis.

Getting more Americans to save for emergencies, especially low- and middle-income earners, is crucial for their financial security. Not doing so can result in financial ruin.

The statistics are scary. In the past year, 48% of households faced at least one unexpected expense related to an emergency, according to a CIT Bank survey whose results were published in August. And Prudential Financial says 69% of Americans have less than $1,000 in a savings account. A 2018 PwC Employee Financial Wellness Survey showed that “not having enough emergency savings for unexpected expenses” is the No.

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