Employees lean on emergency savings as gas costs keep rising 

• Key Insight: Learn how rising fuel costs are shifting emergency-savings usage toward commuting expenses.  
• What's at Stake: Increased withdrawals risk productivity, retention and benefits strategy effectiveness across employers.  
• Forward Look: Prepare for sustained benefit demand as gas prices remain roughly 35–40% above last year.
• Source: Bullets generated by AI with editorial review

More employees are tapping into emergency savings accounts to cover rising transportation and fuel costs, according to new analysis. 

An April report from SecureSave found that use of emergency savings accounts for vehicle and transportation expenses rose 22% year over year, with transportation costs accounting for more than 11% of emergency withdrawals during the week of April 23. 

"Our data from employee use of ESAs shows fuel costs are straining commuting budgets and reinforces the need for a safety net and ongoing savings tool to help employees manage emergency expenses without taking on debt," said Devin Miller, head of SecureSave, an employer-sponsored emergency savings platform.

Although gas prices have eased in recent weeks, they remain significantly higher than a year ago. AAA data show the national average at $4.26 per gallon as of June 3, roughly 35% to 40% higher than the same period last year. 

The increased use of emergency savings to cover transportation costs underscores growing financial pressure on many workers, Miller said. 

Read more: Workplace emergency funds gain steam as workers struggle to save

"It's not just headlines in the news, but it's showing up in how people are using a product like ours," he said. "They're declaring it an emergency. It's also helpful for employers to remind them that a financial emergency is not necessarily this huge calamitous thing. It could be as simple as filling up my car is an extra $40 a week that I did not budget for, and it's going to have to come from somewhere."

How much employees are relying on emergency savings funds to cover transportation costs depends greatly on factors such as geography, commute distance and job type, Miller pointed out.

"If you've got a group of factory workers in a particular area and everybody's driving to work from a pretty far distance and they're living in an expensive state, they may see this data even more pronounced than others," he said. 

For employers, tracking emergency savings usage can help identify when workers are under strain and whether financial wellness benefits are helping employees better manage those shocks. 

A recent study by Morgan Stanley found that more than half of U.S. employees say financial stress is affecting their job performance. Eighty percent of HR managers say employees' financial issues hurt productivity,  according to the report,  and 53% say financial stress-reducing benefits matter most for job satisfaction, ahead of mental or emotional support (26%) and physical wellness benefits (19%). 

Benefits of an ESA

Emergency savings accounts as a workplace benefit are not new in concept, but have grown in popularity recently due to growing financial stress and cost-of-living pressures. The adoption rate for this voluntary benefit is "incredibly" high, Miller said, especially when there's employer incentive attached.

"They're typically going to see it perform as one of the top elective benefits that they have," he said. "For benefit professionals, that's huge because launching a benefit is really hard." 

Offering employees an emergency savings account can also boost retention rates, said Miller, adding that "it's a very clear way for employers to demonstrate to their employees:  We care about you, we understand what's going on in your world, and we want to put together a solution that's going to benefit you." 

Read more: Workers feel financial stress at work, cut back on benefits

Miller said rising financial strain and increased use of emergency savings accounts should serve as a reminder to benefit leaders that many workers are struggling in today's economy.

"Your employees are just trying to make their budget work, and they are strained right now," he said. "Inflation is peaking again, savings is down. They feel it every time they fill up the car, and every time they buy groceries, and that's the reality that's out there."