To assist workers in managing financial emergencies and other short-term financial needs, MassMutual has announced that it is offering an emergency savings solution to every worker who participates in one of its 401(k)s or other DC plans.
The solution will be available automatically through MassMutual’s MapMyFinances financial wellness tool. The funds will be administered by Millennium Trust Company, LLC, which created the product to give retirement providers a way to offer plan participants access to an easy and automatic way to save for unexpected expenses. The accounts will require a minimum deposit of $25 per month and the maximum amount workers can accumulate in their emergency account is $250,000.
“MassMutual’s research shows that three out of four American workers lack enough savings to cover at least six months of expenses in case of an emergency. One in four workers has less than a months’ savings or no savings,” notes Paul Lapiana, Head of Product for MassMutual. “The lack of emergency savings often prevents people from saving enough for retirement.”
