Voya Adds Emergency Savings Solution to Financial Wellness Support Offerings
The platform is said to provide out-of-plan emergency savings support alongside the retirement plan and other workplace savings accounts.
Voya Financial Inc. is partnering with Millennium Trust Co. LLC to offer emergency savings fund solutions for workplace clients’ employees.
“While the need for emergency savings has been growing over the years, the COVID-19 crisis has placed a spotlight on the immediate actions that many individuals are seeking to take today, as more than half (53%) of Americans say they are more likely to save for possible emergencies in 2021 compared to 2020,” says Charlie Nelson, CEO, retirement and employee benefits at Voya Financial, in a release by the company. “As the need for broader savings solutions is becoming more inextricably linked to positive retirement outcomes, providing emergency savings options both in and outside of retirement plans are just a few examples of what we can be doing to support employers to address the broader health and wealth needs of their employees.”
Other features within the emergency savings solution include optional automatic saving through payroll deduction, along with a plan sponsor’s ability to make employer contributions to employee emergency savings funds through an employer match or ad hoc contributions.
The solution also offers enrollment and engagement campaigns and an online portal to manage programs and receive direct support from Millennium Trust. Participants will be able to access the platform via smartphone, computer or tablet, says Millennium Trust.
“We are proud of our strategic relationship with Voya in the launch of an emergency savings solution for their clients,” says Gary Anetsberger, CEO, Millennium Trust. “In these very uncertain times, the vast majority of American workers have been negatively impacted by a lack of emergency savings to cover unexpected expenses or to bridge a gap in unemployment. We look forward to assisting Voya’s clients in addressing this most urgent of needs.”
“Employer-sponsored retirement plans are the foundation for building retirement security, but for many, a lack of emergency savings can be putting their retirement at risk. Our research at Voya shows that retirement plan participants with inadequate emergency funds are 13 times more likely to take a hardship withdrawal from their retirement account, compared to those that indicated they have an emergency fund,” adds Jeff Cimini, senior vice president, retirement product at Voya Financial. “For employers, seeking opportunities to help individuals get back on track is becoming increasingly important. Emergency savings, student loan debt repayment assistance, health savings and even caregiver support services are all examples that can help to ultimately provide individuals with greater retirement outcomes and improved financial wellness.”
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