WHO WE ARE.
TRAVELERS ANNOUNCES PAYING IT FORWARD SAVING PROGRAM TO HELP EMPLOYEES SAVE FOR RETIREMENT WHILE TACKLING STUDENT DEBT
Company Release – 2/25/2019 2:41 PM ET
HARTFORD, Conn.–(BUSINESS WIRE)– The Travelers Companies, Inc. (NYSE: TRV) has announced an innovative new benefit for its employees that takes the tough choice out of paying down student debt or saving for retirement.
With The Travelers Paying It Forward Savings Program, payments by eligible U.S. employees toward their student loans will qualify for the company’s 401(k) Plan “matching” program.
The new program will help tackle two of the biggest financial challenges Americans face today: getting out from under the burden of student loan debt and building healthy savings for retirement.
“We have the most talented workforce in our industry and benefit immeasurably from the education and expertise they bring to their work,” said Alan Schnitzer, Chairman and Chief Executive Officer of Travelers. “Yet many of our colleagues all too often struggle to save for retirement because student loans weigh so heavily on their finances. Investing in their education shouldn’t stop our employees from investing in their future. We are promoting a standard of employee care that enables them to do both.”
According to the Federal Reserve, student loan debt in the United States reached more than $1.5 trillion at the end of 2018. Starting to save early is key to a healthy retirement fund, yet the Fed’s latest Report on the Economic Well-Being of U.S. Households noted that 41 percent of 18- to 29-year-olds said they had no retirement savings. The report also highlighted that 42 percent of those who attended college, representing 30 percent of all adults, have incurred at least some debt for their education.
As part of its leading benefits package, Travelers currently has a “matching” program for employee contributions to 401(k) accounts. Beginning in January 2020, when The Travelers Paying It Forward Savings Program takes effect, student loan payments will also be taken into account when determining the company’s 401(k) contribution.
Employees, including those who are not in a position to contribute at all to their 401(k) accounts because of student loans, who participate in the new program could accumulate tens of thousands of dollars in their 401(k) accounts over a decade, which could be worth hundreds of thousands of dollars at retirement. That demonstrates the importance of starting to save for retirement early in order to realize the benefit of compounding returns over time.
Travelers hires thousands of employees each year under the age of 35, most of whom have college degrees and many of whom have advanced degrees.
“This program is truly life changing for those of us who are chipping away at our debt and still trying to build for our futures,” said a user experience designer who joined Travelers in 2018 with a degree in visual communication design. “It speaks volumes about how a company that cares about its employees invests in their personal well-being and success.”
Blake Perry, a claim manager at Travelers, said, “In a long list of initiatives I’ve seen Travelers implement to support and invest in employees during my nine years with the organization, I believe this is among the most impactful of them all. I look forward to participating fully!” Blake joined Travelers in 2010 and has a degree in political science as well as an advanced degree in law.
About Travelers
The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has approximately 30,000 employees and generated revenues of approximately $30 billion in 2018. For more information, visit www.travelers.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190225005944/en/
Media:
Matt Bordonaro, 860-277-7014
mbordona@travelers.com
Source: The Travelers Companies, Inc.
SUBSCRIBE TO GET OUR LATEST BLOGS
Want to stay up to date? Have stories sent directly to your email inbox.
WHO WE ARE.
OPENING DOORS FOR YOUNG WOMEN THROUGH MENTORING
“It’s a wonderful opportunity to make a real difference in a young woman’s life,” said a Women in Actuarial and Analytics (WIAA) member. Through WIAA and the Travelers Women’s Diversity Network, Lorie and about a dozen other members from the two groups mentor students at Grace Academy, an independent and tuition-free middle school for girls from underserved families in Hartford, Connecticut.
Each week, they spend their lunch hour with the seventh- and eighth-graders, providing social and emotional support. They also help them prepare for high school, college and professional life by sharing personal experiences and engaging in activities. Over the last three years, Lorie has worked with some of the same students this school year as the mentoring commitment continues throughout the duration of the students’ time at Grace Academy.
“I am very proud to be a part of Travelers and our hands-on community outreach that fosters education and strengthens our commitment to diversity,” added Elena Antonetti, Legal Services, and Women’s Diversity Network member. “Programs like this are invaluable in helping students to think about their future. They also give us a chance to introduce more women to careers in insurance and law.”
SUBSCRIBE TO GET OUR LATEST BLOGS
Want to stay up to date? Have stories sent directly to your email inbox.