Transamerica Launches Workplace Emergency Savings Accounts – InsuranceNewsNet

Transamerica announces the addition of emergency savings accounts as a new benefit for employers to help their employees. Through new strategic relationships with Millennium Trust Company and SecureSave, the new offering is designed to help employees save for unforeseen events that could impact their ability to contribute or maintain their retirement savings account at work.

In its latest report on the economic well-being of American households, the Federal Reserve found that only 64% of adults would be able to cover an unexpected expense of $400 using only cash, savings or a credit card. credit they could repay. to the next statement. Alarmingly, 12% of adults would be unable to afford the unexpected expense of $400 by any means.

Employers can choose one of Transamerica’s pre-qualified providers, either Millennium Trust or SecureSave. Both providers offer employers an easy way to offer and manage an emergency savings fund as a workplace benefit. Transamerica’s multi-vendor approach gives employers the flexibility to match their business needs with the best solution for their employees.

Transamerica Emergency Savings Accounts allow employees to automatically save a portion of their regular salary to build an emergency savings fund. To encourage employees to set up emergency savings accounts, employers have the option to contribute to employee accounts. Transamerica’s emergency savings offerings are FDIC insured up to the standard maximum deposit insurance amount of $250,000.

“Employers are realizing that financial stress on individual employees can have a significant impact on productivity, retention and overall health,” said Kent Callahan, CEO of Workplace Solutions at Transamerica. “Transamerica helps employers address the real financial needs of their employees by creating simple, automatic ways to save money. Emergency savings programs can help alleviate sudden and unexpected cash needs. We believe that people will be more willing to save for the long term in retirement plans if they already have a cushion to meet household needs and emergencies first. Workplace emergency savings accounts are perfectly positioned to help people cope with unexpected life events and reduce financial stress.

Transamerica Emergency Savings Accounts offer:

  • A complete savings solution, automated, easy to deploy and impactful.
  • Sign-up campaigns to help drive program participation.
  • Payroll deduction for automatic savings.
  • Easy access to funds through intuitive digital platforms with round-the-clock access.
  • Optional employer contributions through employer matching or ad hoc contributions.

Emergency Savings Accounts are the latest addition to Transamerica’s growing suite of workplace financial wellness solutions. In 2020, the company introduced the availability of health savings accounts and a student loan repayment program. In 2021, the company launched Individual Coverage Health Reimbursement Accounts.

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