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 Sasha
Kashalapov, 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.
To learn more about careers at Travelers, please visit www.travelers.com/careers.
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, 860.277.2014
mbordona@travelers.com
Source: The Travelers Companies, Inc.