There’s a way to preserve 401(k) savings while still being able to fund some unexpected expenses. Employee purchase programs provide a means for workers to obtain items they need without dipping into their financial future.
Through Purchasing Power, workers can enroll in online education courses and acquire a variety of household items including computers, appliances and furniture via payroll deduction over a 12-month period with no fees or ballooning interest. Purchasing Power is an option to keep employees from borrowing against their 401(k), getting caught in the minimum payment trap with credit cards, or incurring long payment terms, high interest and penalty fees.
According to a survey of 2,000+ Purchasing Power customers, 71 percent report that having access to Purchasing Power makes them less likely to consider their 401(k) or other alternatives for short-term financing needs.
That’s good news for brokers. Employees who purchase through Purchasing Power continue to do so – that means recurring commissions.