Massachusetts Mutual Life Insurance Company is offering an emergency savings solution to employees who participate in defined contribution (DC) plans it serves.
MassMutual is making the emergency savings solution available automatically through MassMutual’s MapMyFinances financial wellness tool, which helps workers prioritize their personal finances and employee benefits based on their family needs and budget. The accounts require a minimum deposit of $25 per month, are FDIC-insured and taxable.
The accounts are administered by Millennium Trust Company, LLC. Through Millennium Trust’s cash account sweep program, they earn a competitive market rate of return. The maximum amount workers can accumulate in their emergency account is $250,000.
“Americans need to save for retirement, but also for unexpected expenses that could potentially derail their retirement strategy,” says Erik Beck, chief growth officer at Millennium Trust. “That’s why we created this platform—to provide individuals with an easy and automatic way to save for emergencies. This will help protect Americans’ retirement nest egg should emergencies arise, and will help them achieve greater financial wellness.”
“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,” says Paul Lapiana, head of product for MassMutual. “The lack of emergency savings often prevents people from saving enough for retirement.”