building financial wellness at american express with smart saving american savings education council...
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Building Financial Wellness at American Express with Smart Saving
American Savings Education Council (ASEC) Partner’s Meeting
April 10, 2013
American Express Company Profile
American Express is a global services company, providing customers with access to
products, insights and experiences that enrich lives and build business success
o Fortune 100 Company
o $31.5 billion in total revenue (2012)
o Celebrating 163nd year in business
o Headquarters in New York City; more than 63,500 employees globally
American Express is the world's largest card issuer by purchase volume
o More than 97 million cards-in-force
o Services include charge, credit card and payment products for consumers, small businesses and corporations, network services, corporate/consumer travel, and merchant services
American Express has one of the world’s strongest brands
o Ranked 16th: FORTUNE’S America’s Most Admired Companies
o Ranked #1 Six Years in a Row: J.D. Power & Associates for customer satisfaction among credit card issuers
o Named a great place to work in more than 25 countries around the world
AMERICAN EXPRESS SMART SAVING LOGO & TENETS
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BACKGROUND AND GOALS
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Process StepProcess StepDeclining RSP*/401(k) participation from mid-80%
to 70% in Q3 2009
Feedback from our employees and vendors highlights an
unfulfilled need
Utilization of servicesbelow expectation
Issues
Employee Engagement■ Smart Saving “Fairs”■ Seminars and webinars■ Launch Smart Saving on The Square■ Q&A Tables on-site■ 1:1 financial & retirement planning meetings
Employee Appreciation■ Easy access to resources■ Address employee irritants■ Promote existing programs
Promote Usage■ 10% increase in RSP participation■ Increase utilization (e.g., financial planning and legal service plan)■ Integrate Healthy Living/Smart Saving/Work Life messaging
Goal to Increase Awareness andUsage of Financial Benefits
* RSP is the Retirement Savings Plan, the Company 401(k) plan
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Events Newsletter IntranetBlog
INTEGRATED BENEFITS STRATEGY
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Process StepProcess Step
OFF TO A GREAT START
Q3 2010 Q4 2010 2011
Launch■ 4,934 visits to new Smart Saving
page■ 2,517 employees took Smart
Saving Check-In ■ 38% increase in calls to financial
planning service
5 + 5 Campaign■ 0% savers: 334 enrolled
(7% of audience)■ 1% – 4% savers: 428
increased RSP (8.5% of audience)
■ 4,225 hits to “5 plus 5” page on The Square
Targeted e-mail■ 0% savers: 245 enrolled (9.5%
of audience)■ 1% – 4% savers: 388 increased
RSP deferral rate (12.5% of audience)
Enhancements■ Special Enrollment for life
insurance, LTD & legal assistance plan
■ Roth 401(k) effective October 2011■ Reduce wait for Company Matching
Contributions effective January 2012
■ Self-Directed Brokerage Account provider change-October 2011
Innovation!Smart Saving for Kids• Hong Kong• Mexico• U.S.
Events■ 18 events in Phoenix, Salt Lake City,
Greensboro, Fort Lauderdale/Miami, Atlanta, Jacksonville, St. Petersburg and NY reached close to 8,400 employees
■ 2,000+ signed up for 1:1 financial planning session
■ 400 enrolled in RSP or increased contributions■ Many more participated in follow-up education
sessions■ Onsite visits for Q&A and 1:1 Ayco sessions
“Add Power” Campaign■ Encouraged employees to take
the 1% challenge — and direct 1% more of pay to the RSP or personal savings. 1,032 have increased RSP deferral rate.
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Process StepProcess Step
2012
Q1 2012 Q2 2012 Q3 & Q4 2012
1% Challenge■ Encourage employees to save 1%
anywhere for anything, vacation, car, house, emergency fund, retirement, etc.
Teach Children to Save Day■ Special savings banks
distributed with four slots for saving: Save, Spend, Invest and Share
■ Helpful hints posted to Smart Saving pages on The Square
Events■ Parents@amex Lunch ‘n Learn program■ LGBT seminar and webinar ■ How to Raise a Financially Savvy Child
Quarterly Webinars■ Retirement-How to Get There, Roth-Is it Right for You, Investments■ Managing Your Money, Four Ways to Plan Smart, Pre-Retirement Planning
Smart Saving Virtual Fair■ Develop virtual Smart Saving Fair ■ Launch in October 2012■ 4K Virtual employees
Share Your Smart Saving Story■ Over 200 employees shared their Smart
Saving Story
Campaigns■ Beneficiary Campaign■ One Retirement Fund■ Button Campaigns on The Square
Barbara, need help choosingyour Retirement Fund?
American Express Retirement Savings PlanIn honor of America Saves Week,take action to improve your future!
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Process StepProcess Step
2012
Q1 2013 Q2 2013 Q3 & Q4 2013
1% Challenge■ Encourage employees to save 1%
anywhere for anything, vacation, car, house, emergency fund, retirement, etc.
Events■ Parents@amex Lunch ‘n Learn program■ LGBT seminar and webinar ■ Managing Your Money Day - Florida
Quarterly Webinars■ Retirement-How to Get There, Roth-Is it Right for You, Investments■ Managing Your Money, Four Ways to Plan Smart, Pre-Retirement Planning
Smart Saving Virtual Fair■ Ongoing roll-out of Virtual Smart Saving
Fair ■ All US Employee launch May 2013■ 20K Employees!
Share Your Smart Saving Tips!■ Calling all Smart Savers to share their best
Smart Saving tips and tricks for a chance to win great prizes!
Smart Saving for New Hires■ Innovation Grant Winner■ Early Engagement & Participation■ Building a culture of Financial Wellness on
Day 1!
American Express Retirement Savings PlanIn honor of America Saves Week,
take action to improve your future!
The Power of 1%■ Part of America Saves Week Promotion ■ Employees asked to share how saving 1%
more helps them reach their savings goals■ 10 Winners of American Express Gift
Cards
RESULTS
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Note: results include Smart Saving Fair promotion as well as individual program promotions
Locations that hosted Smart Saving Fairs showed larger increases in program utilization
Retirement: 401(k) participation increased 9%
Plan participation increased from 70% in Q3 2009 to 79% in Q4 2012
Those deferring 5% or more increased from 72% to 82% for the same period
Locations that hosted Smart Saving Fairs increased participation from1% to 17% for the same period
Day-to-Day Expenses
Calls to the financial planning service increased by 12% from Q4 2009 to Q4 2012
Deals and Discounts (increased utilization of entertainment, cell phone and other discount programs)
Protection & Planning
1,260 employees elected supplemental life insurance
coverage
560 employees signed up for the Will Preparation Service
(provided at no additional cost to those enrolled in
Supplemental Life)
350 employees signed up for the legal assistance plan
Family & Kids
5,800 employees utilized back-up child care program
1,500 employees enrolled in a secondary education
resource program (education counseling for employee or
employees’ children)
275 employees utilized back-up elder care program
WELCOME TO THE VIRTUAL SMART SAVING FAIR!
CONTACT SMART SAVING
Smart Saving Team: [email protected]
Barbara Kontje
Director, Retirement Americas & Smart Saving
212-640-0288
Peter Papadimitriou
Analyst, Smart Saving
212-640-0330
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