Transamerica Introduces Workplace Emergency Savings Accounts
BALTIMORE, May 13, 2022 /PRNewswire/ -- 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 unexpected events that may impact their ability to contribute to or preserve their workplace retirement savings account.
In its most recent report on the economic well-being of U.S. households, the Federal Reserve found that only 64% of adults would be able to cover an unexpected $400 expense by exclusively using cash, savings, or a credit card that they could pay off at the following statement. Alarmingly, 12% of adults would be unable to pay the unexpected $400 expense by any means.
Employers are able to choose one of Transamerica's pre-selected providers—either Millennium Trust or SecureSave. Both providers provide employers with an easy way to offer and manage an emergency savings fund as a workplace benefit. Transamerica's multi-provider approach gives employers the ability to match their company's needs with the best solution for their employees.
Transamerica emergency savings accounts enable employees to automatically save a portion of their regular paychecks in order to build an emergency savings fund. To incentivize employees to establish emergency savings accounts, employers have the option to contribute to employees' accounts. Transamerica emergency savings offerings are FDIC-insured up to the standard maximum deposit insurance amount of $250,000.
"Employers realize that individual employees' financial stress can impact productivity, retention and overall health significantly," said Kent Callahan, CEO of Workplace Solutions at Transamerica. "Transamerica is helping employers lean into the real financial needs of their employees by creating simple, automatic ways to save money. Emergency savings programs can help alleviate sudden and unexpected needs for cash liquidity. We believe that people will be more willing to save for the long term in retirement plans if they already have a cushion to first meet household and emergency needs. Emergency savings accounts offered through the workplace are perfectly positioned to help people address life's unexpecte events and reduce their financial stress."
Transamerica's emergency savings accounts provide:
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 debuted individual coverage health reimbursement accounts.
Transamerica is a leading innovator of workplace retirement and employee benefit solutions. To learn more about Transamerica's solutions, contact your financial advisor.
About Millennium Trust Company
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