Canary, the emergency relief platform for employers, today announced its 2025 Annual Report, underscoring that emergency relief is the backbone of financial wellness, enabling employees to avoid raiding retirement savings and stay engaged in long-term wealth-building — at a moment when hardship withdrawals from 401(k) accounts have nearly tripled since 2020.
In 2025, 48% of grantees reported that the grant did not fully cover their financial needs, and 57% said they would still need to turn to additional resources. Yet 93% said they felt better about their employer as a result of receiving relief, and nearly three in four grantees said the grant gave them time and space to plan their next steps. Additionally, Canary delivered 1.5x more grants compared to 2024, reflecting both increased need and expanded employer adoption. The company also saw a 72% increase in the number of clients served.
That finding underscores a critical insight for employers: emergency relief is not a “nice-to-have” benefit. It is the essential foundational layer of financial wellness. Without short-term liquidity, employees cannot meaningfully engage with longer-term benefits like 401(k) contributions, debt repayment programs, or savings plans. When workers are one unexpected expense away from eviction, retirement planning becomes irrelevant.
Broader economic data show that most Americans cannot cover a $500–$1,000 emergency without borrowing or selling something, and nearly one in three workers has taken a loan or hardship withdrawal from their 401(k). Canary’s data supports what the larger narrative tells us:
- Hardship withdrawals and plan loans are rising, most often driven by housing and medical expenses.
- 159% increase in emergency grants tied to eviction and forced moves, as rising housing and utility costs outpace wages.
- 80% of grantees come from households earning under $69,000 annually, with women ages 30–39 representing the largest segment of recipients
- 71% say the grant gave them time and space to plan their next steps, instead of spiraling into debt or long-term setbacks.
The pattern is clear: when emergency savings are absent, retirement accounts become de facto emergency funds.
“Every year, this report serves as a window into the financial lives of working Americans,” said Rachel Schneider, Co-Founder and CEO of Canary. “The biggest pressures are not discretionary. They’re housing, food, and utilities. Common life events like a medical bill or car repair are pushing households into crisis. Inflation may have cooled on paper, but wages have not caught up to the real cost of essentials. Without a buffer, employees are forced to raid retirement savings or take on high-cost debt. Emergency relief is the first line of defense.”
Canary works with organizations across industries to provide employer-funded relief grants through its grant-making platform, Grant Circle. The platform enables employees to receive grant money when they experience an unexpected, unavoidable emergency that causes financial hardship. To date, Canary has partnered with organizations such as Ocean Spray, DoorDash, Visionworks, Clear Channel Outdoor, Varsity Brands, and others to distribute funds to employees in acute financial distress.
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