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Building Financial Wellness at American Express with Smart Saving

American Savings Education Council (ASEC) Partners Meeting

April 10, 2013American Express Company ProfileAmerican Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success Fortune 100 Company$31.5 billion in total revenue (2012) Celebrating 163nd year in businessHeadquarters in New York City; more than 63,500 employees globally

American Express is the world's largest card issuer by purchase volume More than 97 million cards-in-forceServices 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 worlds strongest brandsRanked 16th: FORTUNES Americas Most Admired Companies Ranked #1 Six Years in a Row: J.D. Power & Associates for customer satisfaction among credit card issuersNamed a great place to work in more than 25 countries around the worldAMERICAN EXPRESS SMART SAVING LOGO & TENETS3

BACKGROUND AND GOALS4Process StepProcess StepDeclining RSP*/401(k) participation from mid-80%to 70% in Q3 2009Feedback from our employees and vendors highlights anunfulfilled needUtilization of servicesbelow expectationIssuesEmployee EngagementSmart Saving FairsSeminars and webinarsLaunch Smart Saving on The SquareQ&A Tables on-site1:1 financial & retirement planning meetingsEmployee AppreciationEasy access to resourcesAddress employee irritantsPromote existing programsPromote Usage10% increase in RSP participationIncrease utilization (e.g., financial planning and legal service plan)Integrate Healthy Living/Smart Saving/Work Life messagingGoal to Increase Awareness andUsage of Financial Benefits* RSP is the Retirement Savings Plan, the Company 401(k) plan

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EventsNewsletterIntranetBlog

INTEGRATED BENEFITS STRATEGY

56Process StepProcess StepOFF TO A GREAT START

Q3 2010Q4 20102011Launch4,934 visits to new Smart Saving page2,517 employees took Smart Saving Check-In 38% increase in calls to financial planning service

5 + 5 Campaign0% 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 SquareTargeted e-mail0% savers: 245 enrolled (9.5% of audience)1% 4% savers: 388 increased RSP deferral rate (12.5% of audience)

EnhancementsSpecial Enrollment for life insurance, LTD & legal assistance planRoth 401(k) effective October 2011Reduce wait for Company Matching Contributions effective January 2012Self-Directed Brokerage Account provider change-October 2011Innovation!Smart Saving for Kids Hong Kong Mexico U.S.Events18 events in Phoenix, Salt Lake City, Greensboro, Fort Lauderdale/Miami, Atlanta, Jacksonville, St. Petersburg and NY reached close to 8,400 employees2,000+ signed up for 1:1 financial planning session400 enrolled in RSP or increased contributionsMany more participated in follow-up education sessionsOnsite visits for Q&A and 1:1 Ayco sessionsAdd Power CampaignEncouraged 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.7Process StepProcess Step2012Q1 2012Q2 2012Q3 & Q4 20121% ChallengeEncourage employees to save 1% anywhere for anything, vacation, car, house, emergency fund, retirement, etc.Teach Children to Save DaySpecial savings banks distributed with four slots for saving: Save, Spend, Invest and ShareHelpful hints posted to Smart Saving pages on The SquareEventsParents@amex Lunch n Learn programLGBT seminar and webinar How to Raise a Financially Savvy Child

Quarterly WebinarsRetirement-How to Get There, Roth-Is it Right for You, InvestmentsManaging Your Money, Four Ways to Plan Smart, Pre-Retirement PlanningSmart Saving Virtual FairDevelop virtual Smart Saving Fair Launch in October 20124K Virtual employeesShare Your Smart Saving StoryOver 200 employees shared their Smart Saving Story

CampaignsBeneficiary CampaignOne Retirement FundButton 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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8Process StepProcess Step2012Q1 2013Q2 2013Q3 & Q4 20131% ChallengeEncourage employees to save 1% anywhere for anything, vacation, car, house, emergency fund, retirement, etc.EventsParents@amex Lunch n Learn programLGBT seminar and webinar Managing Your Money Day - Florida

Quarterly WebinarsRetirement-How to Get There, Roth-Is it Right for You, InvestmentsManaging Your Money, Four Ways to Plan Smart, Pre-Retirement PlanningSmart Saving Virtual FairOngoing roll-out of Virtual Smart Saving Fair All US Employee launch May 201320K 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 HiresInnovation Grant WinnerEarly Engagement & ParticipationBuilding 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 goals10 Winners of American Express Gift Cards8results

9Note: results include Smart Saving Fair promotion as well as individual program promotions

Locations that hosted Smart Saving Fairs showed larger increases in program utilizationRetirement: 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 & Planning1,260 employees elected supplemental life insurance coverage560 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 & Kids5,800 employees utilized back-up child care program1,500 employees enrolled in a secondary education resource program (education counseling for employee or employees children)275 employees utilized back-up elder care program

9WELCOME TO THE VIRTUAL SMART SAVING FAIR!

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CONTACT SMART SAVINGSmart Saving Team: smartsaving@aexp.com

Barbara KontjeDirector, Retirement Americas & Smart Saving212-640-0288barbara.a.kontje@aexp.com

Peter PapadimitriouAnalyst, Smart Saving212-640-0330peter.papadimitriou@aexp.com

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