Voya Financial and SAVVI Financial have teamed to offer a “COVID Relief Planning Assistant,” designed to help those laid off, furloughed or working reduced hours as a result of the pandemic.
Voya will offer it through its Retirement and Employee Benefits businesses to its clients for their plan participants and employees.
How it works
The Assistant is targeted to those financially impacted by the pandemic who need a short-term plan. If an individual has lost or had their income reduced, the SAVVI tool will help organize their assets, debt, expenses and existing income to create a strategy for three to six months.
A link to the tool is provided by their employer or retirement plan sponsor. They’re then guided through a series of six questions to gauge how they’re feeling about their overall financial situation, collect key financial household information, ask if their health care coverage has changed during the crisis, and collect other necessary financial and employer information.
If they qualify for COVID-19 relief planning assistance, they will then receive a personalized, short-term financial action plan. It will provide specific guidance on:
- recommended monthly spending cuts and budget changes;
- specific accounts (savings, health savings accounts, retirement, etc.) to access for income shortfalls; and
- potential savings actions to meet longer-term retirement goals. The recommended actions also consider CARES Act benefits, tax consequences and long-term retirement goals. If a person does not qualify, they will then be directed to educational resources selected by SAVVI.
“With new Voya research indicating that 81% of Americans believe that significant layoffs are likely and 38% report some type of impact to their household’s employment as a result of COVID-19 (e.g. job loss, furlough, reduction in hours or salary), households are struggling to figure out revised budgets, estimate cuts in spending and identify potential resources to access additional funds,” Charlie Nelson, CEO of Retirement and Employee Benefits with Voya Financial, said in a statement. “The decisions are further complicated because there are specific benefits offered in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as well as tax consequences and long-term retirement goals to consider.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
