Retirement Insights

Emergency Savings = Better Retirement?

Jul 1, 2022
  • BlackRock

Key points


Cost of DC loans

Loss of market exposure and compounded returns are some of the cost of borrowing from defined contribution (DC) plans.


Sidecar Savings for emergency expenses

A “sidecar savings” account may help build short-term stability, giving participants the confidence to commit to long-term retirement goals.


Support from plan sponsors

Plan sponsors could help participants meet short-term financial needs by taking steps to help reduce defaults.