Voya adds new Emergency Savings solution to its suite of financial wellness support offerings

Rhea-AI Summary

Voya Financial, Inc. (NYSE: VOYA) has entered a strategic relationship with Millennium Trust Company to offer Emergency Savings fund solutions to workplace clients. This initiative aims to support employees in saving for unexpected events while enhancing their overall financial wellness. Research indicates that 53% of Americans are more inclined to save for emergencies in 2021 compared to 2020. The program includes payroll deduction options, employer contributions, and an administrative portal for easy management. Voya emphasizes the importance of emergency savings in retirement planning.

Positive

• New strategic relationship with Millennium Trust expands Voya's offerings for emergency savings.
• Research shows 53% of Americans are more motivated to save for emergencies in 2021.
• Emergency savings solutions aim to enhance employee financial wellness and retirement outcomes.

Negative

• None.

Voya Financial, Inc. (NYSE: VOYA), announced today a new strategic relationship with Millennium Trust Company, LLC (Millennium Trust) that will provide the ability for Voya’s workplace clients to offer Emergency Savings fund solutions to their employees to help them save for life’s unexpected events. The new offering will supplement other actions Voya and its clients are taking to help workers increase emergency savings, including education, guidance and after-tax contributions as an “in-plan” solution within Voya-managed retirement plans. Voya’s focus on emergency savings supports the company’s broader efforts to address the holistic financial wellness needs of Americans and comes at a time when many are seeking opportunities to help build their retirement savings while also being able to absorb short-term financial shocks and disruptions in income.

“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 2020¹,” said Charlie Nelson, CEO, Retirement and Employee Benefits at Voya Financial. “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.”

Voya’s strategic relationship with Millennium Trust now provides a flexible program for employers to add to their benefit offering. The new emergency savings solution includes:

• 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.
• Enrollment and engagement campaigns to help drive participation to the offering.
• Easy-to-use administrative portal to manage the program and ongoing and direct support from Millennium Trust to help implement and manage the program.
• Ease of access for employees to tap funds when emergency expenses arise; employees also have the convenience of opening and managing their emergency savings fund via smartphone, computer or tablet.

“We are proud of our strategic relationship with Voya in the launch of an emergency savings solution for their clients,” said 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,² compared to those that indicated they have an emergency fund,” added 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.”

To help address the growing holistic wellness needs of Americans, Voya has recently collaborated with industry-leading services to support employees with student loan debt along with providing resources to help working caregivers save time, money and stress when it comes to complex planning needs. Most recently, Voya also became the first recordkeeper to join BlackRock’s Emergency Savings Initiative. Through this initiative, Voya is collaborating with the national nonprofit and financial innovator Commonwealth to provide tools and opportunities for individuals to help save more for their future and build greater short- and long-term financial stability.

The new emergency savings solution builds on Voya’s suite of innovative resources that support the financial wellness needs of all Americans, with more features scheduled throughout 2021. This includes: the recently launched budget calculator; Voya Learn digital educational platform; Voya’s financial wellness experience; and myOrangeMoney^® retirement income tool, which is helping millions of Americans change the way they manage and engage with their retirement plan.

As an industry leader and advocate for greater retirement readiness, Voya Financial is committed to delivering on its vision to be America’s Retirement Company^® and its mission to make a secure financial future possible — one person, one family, one institution at a time.

1. Results of a Voya Financial survey conducted through Ipsos on the Ipsos eNation omnibus online platform among approx. 1,005 adults aged 18+ in the U.S. Research was conducted Dec. 17-18, 2020.

2. Voya Financial internal retirement plan participant data, adequate emergency fund is defined as 3+ months of living expenses (Feb. 2020).

About Voya Financial^®

Voya Financial, Inc. (NYSE: VOYA), helps Americans plan, invest and protect their savings — to get ready to retire better. Serving the financial needs of approximately 13.8 million individual and institutional customers in the United States, Voya is a Fortune 500 company that had $7.6 billion in revenue in 2020. The company had $700 billion in total assets under management and administration as of Dec. 31, 2020. With a clear mission to make a secure financial future possible — one person, one family, one institution at a time — Voya’s vision is to be America’s Retirement Company^®. Certified as a “Great Place to Work” by the Great Place to Work^® Institute, Voya is equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has earned recognition as one of the World’s Most Ethical Companies^® by the Ethisphere Institute; as the No. 1-ranked financial services firm among Barron’s 100 Most Sustainable Companies for three consecutive years; as a member of the Bloomberg Gender Equality Index; and as a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.

About Millennium Trust Company^®

Millennium Trust Company is a leading provider of specialized retirement and institutional custody services with more than 1.9 million accounts holding over $31 billion of assets under custody. We are committed to the evolving needs of individuals, employers, advisors and retirement services partners and empower clients with trusted expertise, exceptional service and access to a wide range of solutions. Whether clients are managing corporate retirement assets, running a business or wanting choice beyond traditional asset options, we provide flexible and digital solutions to support our clients’ success.

Millennium Trust Company performs the duties of a directed custodian, and as such does not provide due diligence to third parties on prospective investments, platforms, sponsors or service providers and does not offer or sell investments or provide investment, legal, or tax advice. For more information about Millennium Trust Company, visit www.mtrustcompany.com. Follow us on Twitter and LinkedIn.

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FAQ

What is the new offering from Voya Financial regarding emergency savings?

Voya Financial has launched emergency savings fund solutions in collaboration with Millennium Trust Company, enabling workplace clients to help employees save for unexpected events.

Why is there an emphasis on emergency savings now?

The COVID-19 crisis highlighted the necessity for emergency savings, with over half of Americans more likely to save for emergencies in 2021 compared to the previous year.

How will the emergency savings solution work?

The solution includes automatic payroll deductions, employer contributions, and a user-friendly portal for employees to manage their funds.

What are the expected outcomes of Voya's emergency savings initiative?

The initiative aims to improve employee financial wellness and positively impact retirement readiness.