Unum Group’s Employee Emergency Savings Program reports early success

Chattanooga, TN (December 14, 2023) - Unum Group employees are developing a financial safety net through their engagement in the company’s Emergency Savings Program. The Program, which was launched in spring 2023, allows 401(k) eligible employees to contribute any amount up to $10,000 to a fund that can be utilized to pay for any unforeseen expenses, without having to dip into retirement or credit cards. 

Since the program’s launch, a total of 491 employees have enrolled, with combined contributions of $943,285. As of November 2023, the average savings per employee was $1,414. Unum Group’s program comes at a time when the majority of Americans say they cannot afford a $1,000 emergency expense, according to Bankrate. To date, Unum Group employees have withdrawn $329,888. 

“Life is full of surprises, often times coming with a hefty price,” said Carl Gagnon, Unum’s assistant vice president of global financial wellbeing and retirement programs. “At Unum, we want to make sure that employees have the financial resources they need to address these situations when they occur. Our Emergency Savings Program is designed to help our employees build that important safety net through a simple process, so they are better able to plan for financial emergencies and ease their mind during stressful times.”

The Emergency Savings Program is an after-tax deferral program offered through Unum Group’s 401(k) retirement plan. An emergency savings fund can increase an employee’s personal savings and provides crucial funds that can pay for expenses such as housing, transportation, health care, groceries, childcare, debt payments and more. 

Much like its 401(k) plan, Unum Group allows employees to set a deferral percentage that ranges from 0-50 percent and can contribute up to $10,000 per year on an after-tax basis. Additionally, the Emergency Savings Program has the same investment options as the company’s 401(k) program, which mean that the employee’s emergency savings has the potential to grow faster than contributing to a traditional savings account. Employees can start or stop deductions and can withdraw from the account at any time. If an employee does not use the funds, it can be utilized as additional retirement savings. 

“I am thrilled with the initial engagement with this program and am excited to watch our employees’ participation grow more and more throughout the next year,” Gagnon added. “We’re hoping to give our employees a leg up, as we know many Americans are not prepared when an emergency strikes. We want our colleagues to be prepared and supported.” 

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