Voya is teaming up with emergency savings startup SecureSave to offer rainy-day funds as an out-of-plan solution to Voya’s Workplace Solutions clients.
The feature will be available to Voya clients of all sizes who want to add an emergency savings account (ESA) to their workplace benefits plans. SecureSave says its solution will include deployment and management capabilities that comes with pre-built integrations to ease administrative tasks, along with advanced reporting that provide insights on employee signup statistics, withdrawal reasons, and more.
“In these times, we understand the harsh realities of financial unpreparedness,” said said Devin Miller, co-founder and CEO of SecureSave, in a statement. “We look forward to assisting Voya’s customers in supporting them with this foundational element of their financial health to help them feel and be more financially secure.”
Voya says the new partnership emerged after recent insights show participants are likelier to take on hardship withdrawals to afford unexpected costs. Past findings from SecureSave shows that many are ill-prepared in the event of a crisis, as 63% of surveyed individuals say they cannot cover a $500 emergency expense.
“For many, a lack of emergency savings is putting their retirement at risk. At Voya, we have also found from our own retirement plan participant data that employees without emergency savings are 13 times more likely to take a hardship withdrawal from their retirement account,” added Tom Armstrong, vice president, Customer Analytics and Insight, and head of the Behavioral Finance Institute for Innovation at Voya Financial. “Conversely, those with adequate emergency savings save 51% more for their retirement than those who do not. For employers, it’s important to recognize that helping support short-term needs today can also help improve employees’ long-term savings goals, and a well-designed workplace emergency savings benefit program can be a critical solution to get there.”
A higher number of employers are offering the short-term savings tools, as more research finds the benefits of providing such features. Not only could it boost retirement savings and offer financial stability, experts say, but offering emergency savings features could lift employee morale and engagement, thereby increasing recruitment and retention. Another report by Inspira Financial found that of employers who provide ESAs, 81% have seen a positive return on investment (ROI). Another 76% say the benefit would set them apart from competitors.
Voya’s latest collaboration builds upon other products the company has rolled out in recent months. At the end of last year, the company introduced a new employee wellness platform that featured an updated homepage experience for Voya’s workplace retirement plans and health savings accounts (HSAs).
“In addition to setting up a standalone emergency fund, more employers today are also offering holistic financial wellness solutions to support their employees, including solutions like health savings accounts to offset the burden of eligible medical costs, student loan debt support and expanded offerings for supplemental health insurance,” said Amy Vaillancourt, senior vice president, Workplace Product Development and Architecture at Voya Financial. “Some of these broader wellness benefits can often go overlooked by employees but, when working together, can play a critical role when it comes to optimizing one’s health and wealth needs.”
SEE ALSO:
- Now Is the Time for Emergency Savings
- Employers See Positive Returns When Offering Emergency Savings Benefits
- HSA Bank Adds Emergency Savings Account Solution
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
