As Voya Financial continues to add to its digital retirement and financial wellness tools, it has announced an online, interactive budgeting calculator. Voya’s aim is to enable people to create a monthly budget for spending and saving, including emergency funds.
Voya says the budget takes a 50/30/20 approach, whereby Voya recommends that people use 50% of their after-tax income for basic needs, such as housing, utilities, health care, child care, etc. The 30% should be spent on wants, such as entertainment, dining, hobbies and splurges. And the remaining 20% is for saving, which includes for retirement, in an emergency savings fund and for other goals, such as vacations and travel.
“At Voya, we understand that creating a budget is an important foundational step when it comes to achieving overall financial wellness,” says Amy Vaillancourt, senior vice president, workplace solutions and experience at Voya Financial. “We also understand that being financially well can mean different things to different individuals. But our goal is to help everyone achieve a state of mental well-being where individuals feel they have control over their current finances, are prepared for the unexpected and have confidence in their financial future, which is why creating a budget can be so valuable.”
Voya research has found that workers expect their employers’ retirement websites to offer many financial wellness solutions and make it easy for them to take action, such as making changes to their retirement plan or seeing future income projections. Voya says the new calculator can help people create a balanced budget based on their unique needs and priorities.
Users can download the results from the calculator and easily share them with family members or a financial professional. As well, the tool includes tips on balancing a budget and stretching one’s income. It is available in both English and Spanish and can be accessed at Voya.com.