SpringFour Partner of the Month: Purchasing Power

Helping Americans retire by closing the gap between long-term savings and everyday financial needs

Retirement plans remain a core pillar of employee benefits. Yet with an increasingly dire financial reality, many of those plans are falling short. 

Nearly half of younger working Americans –– 42% — say they’re living paycheck to paycheck. That means after covering their basic living expenses, Gen Z, Millennials, and Gen X have nothing left for savings. And the vast majority say they’re struggling to save for retirement. 

Short-term financial pressure has become one of the biggest barriers to long-term retirement readiness. While many existing retirement plans focus on the future, they fail to address the daily financial pressures that undermine wellbeing, productivity, and long-term savings outcomes. 

People under fiscal duress have limited options. Many are now turning to reduced contributions and increased borrowing, which means their retirement plans are taking a hit. More Americans are resorting to hardship withdrawals from their 401(k) accounts to deal with emergency costs and unexpected expenses. 

There are ways for organizations to provide more meaningful support, just look at what our partner of the month, Purchasing Power, is doing.

A model for enhanced financial wellness services

Purchasing Power, a voluntary benefits company, has introduced an enhanced set of financial wellness services in which SpringFour plays a significant role. The partnership enables access to highly actionable, timely financial wellness resources. 

“People want to answer the question: can I cover rent, can I keep the lights on, buy groceries, and deal with surprise bills without expensive debt?” said Cassandra Compton, Chief Product Officer at Spring Four, in the recent webinar “From Retirement to Real Life: Closing the Gap Between Long-Term Savings and Everyday Financial Needs.” “There’s a lot of interest in practical tools like easy access to vetted local resources, short‑term payment relief, responsible ways to spread out essential purchases, and clear, simple guidance when money’s really tight.”

In a recent study, Purchasing Power found that over seven in 10 full-time employees said they believe employers have a responsibility to help employees improve their financial well-being. 

“[Our goal is to] bridge that gap by ensuring employers can provide immediate access to the financial tools employees want, helping them to get through immediate challenges so they can start thinking about long‑term,” said Jason Steed, Vice President of National Sales and New Market Development, with Purchasing Power.

Partnering to meet people where they’re at

Using SpringFour, employees registered with Purchasing Power can be directly connected to organizations in over 25 categories, including food savings, rental resources, and heat/utilities support, to help address their specific financial needs. These no-cost referrals help provide access to financial aid, reduce expenses and provide a path toward greater financial health and security.

“When people have that kind of support, they’re in a better place to re‑engage with saving and retirement,” says Compton. “Employers are moving from just a 401(k)‑only view of financial wellness to more of a stability‑first mindset.”

The results are a win-win-win. Employees get the support they need, lenders see fewer defaults, and employers see spikes in employee sentiment, reduced turnover, more focused and less stressed workers. 

“That’s the key,” said Steed. “This kind of data shows what kinds of challenges we’re addressing, and that’s exactly why partners like SpringFour matter in this ecosystem.” 

Using AI to meet employees’ needs

SpringFour makes it easier for people to find the right help at the right moment without making their lives more complicated. A combination of human and artificial intelligence is key. The financial health resources delivered by SpringFour are carefully vetted and approved by experts in the field. Then its tools use AI to make searches smarter, personalizing the process by routing users to the most relevant categories. 

Purchasing Power and SpringFour will soon launch a tool with a built-in feedback mechanism. Delivered in a self-serve format, the tool is also confidential, so that employees can privately search for local help. Whether they’re grappling with housing challenges, mental health services or prescription assistance, they don’t have to disclose their situation to HR. It’s an important consideration that lowers emotional barriers to getting help, and bypasses the stigma that many people feel and fear.

Empowering employees to access help on their own terms, in the moment, and without having to navigate the onerous process of determining which local resources are legitimate and not scams is exactly what the collaboration is all about. 

This is what makes Purchasing Power our partner of the month: helping Americans save for a more secure future while reducing stigma and aiding employees to get the help they need.