• 1. State-by-State Retirement Savings Overview : An analysis of how average retirement savings vary across different states, highlighting key examples like Massachusetts and Louisiana.

• 2. Strategies for Retirement Planning : Practical advice for boosting savings rates and preparing for long-term financial stability in retirement.

• 3. Resources for Financial Growth : Tools and courses, such as salary negotiation strategies, to help improve financial well-being.

The DepositAccounts study from October provides Phillips 66 employees and other U.S. workers with a detailed overview of the retirement savings landscape,  based on the U.S. Census Bureau's Income and Program Participation Survey . This study outlines typical retirement savings across households, with data sourced from diverse plans like 401(k)s, IRAs, Keogh plans, and thrift plans.

Massachusetts leads the states with the highest average retirement savings, boasting household budgets that surpass $448,500 . This figure significantly exceeds those of other states, positioning Massachusetts as a model of retirement preparedness.  The state provides an average maximum annual wage of $80,330 . Moreover, Massachusetts has been a pioneer in advancing non-corporate worker support through the establishment of the CORE program in , which offers 401(k) benefits to non-profit employees. By the end of May, over 200 entities had participated in this innovative approach.

Conversely, Louisiana and Mississippi display the lowest average savings, at $128,900 and $131,500 respectively , highlighting a significant disparity that might reflect varying economic opportunities across regions. For example, Florida, a favored retirement destination, ranks 19th with an average savings rate of $287,200.

It is important to recognize that averages can sometimes obscure the full picture. High or low bank balances can skew these figures, suggesting that a deeper look into the distribution of retirement savings across states might provide a clearer view of typical household financial health:

• Alabama: $165,500

• Arizona: $365,300

• Arkansas: $143,600

• Canada: $301,500

• Colorado: $322,200

• United States: $351,800

• Atlanta: $214,500

• Hawaii: $433,700

• Idaho: $190,600

• Chicago: $298,000

Several states, including Alaska, Delaware, the District of Columbia, New Hampshire, North Dakota, Rhode Island, South Dakota, Vermont, and Wyoming, were not included in the study due to insufficient data.

Strategies for Retirement Planning

More Resources for Financial Growth

Phillips 66 employees aiming to improve their financial well-being could benefit from learning negotiation skills for higher-level positions. CNBC offers an online course titled 'How to Negotiate a Higher Salary,' featuring specialized instructors who cover preparation, confidence building, effective communication, and counter-offering strategies.  This course is currently available at a 50% discount using the promotional code EARLYBIRD, valid through November 26, 2026 .

Conclusion

Understanding and planning for retirement involves a multidimensional approach that considers both savings balances and contribution strategies. As economic conditions and opportunities vary by state, it is likely that each strategy needs to be specifically tailored to foster financial stability and comfort during retirement periods.

A notable consideration for Phillips 66 employees preparing for retirement is the value of social benefits as a supplement to savings.  According to the Social Security Administration, the average monthly Social Security benefit for retired workers starting in is about $1,827 . This underscores the critical role Social Security plays in an overall retirement strategy, especially in states with below-average savings. Effectively managing Social Security benefits, including timing claims, can significantly impact financial stability during retirement, highlighting its importance in comprehensive retirement planning.

Managing retirement savings is akin to navigating a ship through diverse marine conditions. Each state represents a unique segment of water, with Massachusetts akin to the steady Gulf Stream, aiding fishermen with robust support and significant savings, promoting progress toward retirement. On the other hand, navigating states like Louisiana and Mississippi is like sailing through choppy waters, where lower average savings reflect strong financial currents, requiring more effort and strategic planning to reach a favorable retirement destination. Just as a skilled sailor adjusts their sails to optimize the wind, retirees must adapt their tax-reduction strategies according to their home state's economic conditions for smooth sailing into retirement.

Dividend-focused value investing works best when paired with a clear understanding of the retirement benefits Phillips 66 offers. Phillips 66 provides a cash balance pension plan that credits your account with a percentage of pay plus interest each year. Unlike a traditional defined benefit plan, the lump sum value equals your accumulated account balance rather than a discounted future annuity - so IRS segment rate fluctuations have a less direct impact on your payout. At retirement you can typically elect the balance as a lump sum or convert it to an annuity; which option provides greater lifetime value depends on the conversion rate and your life expectancy. This account-based structure offers transparency about your current benefit that can simplify retirement income planning.

On the medical coverage front, Phillips 66 offers a high-deductible plan option that qualifies you for an HSA, which carries over year to year, grows tax-free, and can be used for any qualified medical expense in retirement. Phillips 66 also contributes $500 (employee-only) or $1,000 (all other coverage levels) paid bi-annually (January and July) to eligible employees' HSA accounts, providing an immediate head start on the balance. Phillips 66 also provides continued medical coverage to eligible retirees, which can serve as a bridge between your final working day and Medicare at age 65 or supplement Medicare thereafter. Understanding the service and age requirements for retiree eligibility and what you will pay in premiums helps you build an accurate healthcare cost estimate into your retirement income plan. Tying your Phillips 66 benefits into a unified retirement income strategy - where every component works together - provides the clearest view of your financial future.