It’s no secret: Nagging inflation, high interest rates and elevated prices are creating serious pain points when it comes to how employees are managing day-to-day expenses. Given this, HR goals of helping employees plan for long-term financial success, such as saving for retirement, can seem even more daunting and out of reach than in the past.
To buffer those emerging economic realities, KPMG U.S., the New York City-based audit, tax and advisory firm, gave its workforce an unexpected financial boost: Every KPMG U.S. employee with over a year’s tenure recently woke up to find their 401(k) accounts significantly enhanced.
In this atypical move, KPMG announced it will now annually deposit a firm-funded contribution of 6% to 8% of eligible pay into its employees’ 401(k) accounts without requiring any matching personal contribution. Unlike most employers that require employees to contribute their own money to receive a match, KPMG is offering this benefit unconditionally.
“This is not just a testament to KPMG’s commitment to our employees but a powerful response to the financial insecurities plaguing many Americans today,” says Sandy Torchia, the firm’s U.S. vice chair of talent and culture. “This unprecedented step means that employees are seeing a substantial increase in their retirement savings, regardless of whether or not they contribute—a lifeline in a time when financial security is more at risk than ever.”
401(k): Rethinking this key to financial wellness
KPMG launched the KPMG 401(k) Capital Accumulation Plan to help employees address financial insecurity today—so that they can think more strategically about their future financial health, Torchia says.
“This automatic, firm-funded contribution gives our employees peace of mind that they are contributing to their retirement savings simply by being a part of KPMG,” Torchia says. Giving employees access to the funds without requiring a matching contribution means that KPMG employees, she adds, “won’t have to choose between common challenges such as paying down student loans or saving for retirement.”
The move comes as many employers struggle to get their employees to invest in retirement savings. A 2024 report by Financial Health Network found that more than two-thirds of Americans are financially unhealthy, impacting both their ability to meet daily financial needs and save for retirement.
Employee financial health plays a critical role in the wellbeing equation, as it can significantly impact productivity, focus, motivation and more. As organizations contend with ongoing labor and skills shortages, it’s crucial to make financial wellness a key component of fostering a healthy work culture in order to attract and retain top talent, Torchia says.
“When financial wellness is not proactively addressed, employees’ financial issues can translate into organizational productivity problems and contribute to stress, burnout and, potentially, turnover,” Torchia says.
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