Unum offers employees a new emergency savings approach to help save for that rainy day

Rhea-AI Summary

Unum has introduced a new employee benefit allowing payroll deductions for an emergency savings fund. This initiative is aimed at improving financial wellness among its workforce, as 34% of U.S. workers have under $1,000 in savings. The plan allows eligible employees to save without fees and offers investment options similar to their 401(k) accounts. Financial insecurity is high, with 57% of workers able to pay bills for three months or less if income is lost. Unum provides additional resources like financial wellness checkups and student debt relief programs.

Positive

• Launch of emergency savings fund for employees.
• No withdrawal fees for employees accessing the fund.
• Investment in funds available in employees' 401(k) accounts.
• Addressing financial stress among employees, notably with high participation among younger workers.

Negative

• None.

CHATTANOOGA, Tenn., Feb. 22, 2022 /PRNewswire/ -- Unum (NYSE:UNM) employees have a new benefit to prepare for unexpected expenses – without dipping into their retirement or using credit cards. Employees can contribute a portion of their paycheck to an emergency savings fund.

U.S. 401(k)-eligible employees who are not considered highly compensated by the IRS* can set up recurring payroll deductions that can be set aside for an emergency. There is no fee to withdraw, and the emergency savings balance is invested in the same funds available in the employee's 401(k) account.

American workers are financially fragile

According to consumer research from Unum, 34% of U.S. workers have less than $1,000 in their checking or savings account.¹

• 57% said they could only pay their bills for three months or less if they were to lose their main source of income. It's even higher among Millennials at 70% and 69% for Gen Z.
• Women are less financially secure than men with 61% of women being able to pay bills for three months or less compared to 53% of men.

Carl Gagnon, assistant vice president of Global Financial Wellbeing and Retirement Programs at Unum said the company relies on regular employee engagement surveys to determine how they can deliver benefits and resources to meet employees' evolving needs.

"In 2021, three of the top five stressors for employees, were related to finances. For many, it's been hard to stay motivated during the pandemic. We want to educate and provide services to help our employees prepare for a rainy day. The response to this offering has been incredible."

Financial wellness for a multi-generational workforce

"There is something for each of our employees at Unum," said Ben Roberge, director of Financial and Retirement Programs at Unum. "Along with our student debt relief program, generous 401(k) matching, and other financial resources, we provide employees tools to reduce financial stress and improve overall wellbeing."

Other financial resources Unum offers employees include access to dedicated financial assistants, regular financial wellbeing checkups, executive services, and backup emergency care for children, adults, and elders. As well as extensive leave and family support benefits.

For more information about Unum benefits and working at Unum, visit the careers site. For other industry information, visit Unum's newsroom.

About Unum Group

Unum Group provides a broad portfolio of financial protection benefits and services through the workplace and is the leading provider of disability income protection worldwide. Through its Unum US, Unum UK, Unum Poland, and Colonial Life businesses, the company provides disability, life, accident, critical illness, dental and vision benefits that protect millions of working people and their families. Unum also provides leave and absence management services that streamline the leave experience for employers and employees and stop-loss coverage to help self-insured employers protect against medical costs. Unum reported revenues of $13.2 billion in 2020 and paid $7.6 billion in benefits.

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*Nonhighly Compensated Employee definition by the IRS for 2021 is earnings at or below $130k.
1 Unum consumer research of 1,500 full-time, U.S. working adults, August 2021.

 

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SOURCE Unum Group

FAQ

What new benefit has Unum introduced for its employees on Feb 22, 2022?

Unum introduced an emergency savings fund allowing employees to contribute a portion of their paycheck for unexpected expenses.

How does the emergency savings fund benefit Unum employees?

The fund allows employees to save without incurring withdrawal fees and offers investment options similar to their 401(k) accounts.

What percentage of U.S. workers have less than $1,000 in savings according to Unum's research?

According to Unum's research, 34% of U.S. workers have less than $1,000 in their checking or savings account.

What resources does Unum provide to help employees with financial stress?

Unum provides access to financial assistants, regular financial wellbeing checkups, and a student debt relief program.

What is the employee eligibility criteria for Unum's emergency savings fund?

U.S. 401(k)-eligible employees who are not considered highly compensated by the IRS can set up the savings fund.