Recent research by Empower, a leading retirement plan provider , has highlighted substantial regional differences in retirement savings across the United States. The study, conducted in April through a survey of 1,011 U.S. adults, shows that retirement account balances (pensions, IRAs, and 401(k)s) vary widely by region. Acushnet Holdings employees should consider these geographical differences when planning their retirement strategies.
The findings indicate that northern regions typically have larger retirement savings, attributed to factors like higher local wages, state taxes, and the cost of living. This regional advantage results in significant differences in average retirement savings, with some states notably ahead of others. The Acushnet Holdings workforce is in a favorable position to benefit from understanding these economic conditions across regions.
According to data from the Empower Personal Dashboard ™ for September 2024, the average 401(k) balance nationwide is $293,695. This figure serves as an essential indicator of personal spending and investments, which generally rise over time. Notably, for individuals around age 50 who are nearing retirement, this average increases to $583,231—a key consideration for Acushnet Holdings employees approaching retirement age.
Furthermore, the national average for retirement savings is approximately $498,000. However, the top ten states exceed this average by at least $49,000, underscoring the diversity in retirement savings accumulation across the country. The states with the highest retirement savings are:
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Minnesota - $547,000
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Washington - $550,700
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Vermont - $550,000
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Massachusetts - $563,000
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Alaska – $570,000
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New Hampshire - $570,000
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North Dakota - $582,000
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Virginia - $590,000
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New Jersey - $600,000
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Connecticut - $634,000
These statistics illustrate the differences in retirement preparation across states and the challenges many face in building a substantial retirement fund. A January 2024 study by Northwestern Mutual , conducted via the Harris Poll, reveals a substantial gap between the desired and actual retirement savings of adults, with an average shortfall exceeding one million dollars. Acushnet Holdings employees can use this information to gauge their own retirement planning.
This data emphasizes the critical role of thoughtful financial planning and the importance of investment strategies tailored to local economic factors. Survey results provide valuable comparisons for individuals assessing their retirement preparedness. For Acushnet Holdings staff, this means aligning investment strategies with regional economic conditions for stronger retirement outcomes.
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Additional insights from the Employee Benefit Research Institute’s Retirement Confidence Survey of May 2024 show that individuals in wealthier states often benefit from employer-supported financial initiatives. This approach, increasingly adopted by major corporations, has been shown to substantially improve retirement outcomes. The study indicates that employees with access to such resources not only have the ability to save more but also express greater confidence in their retirement plans. These findings suggest that geographic disparities in retirement savings may also reflect different levels of corporate support in financial education and planning, which are essential for enhancing retirement readiness among older workers.
Think of retirement savings as a garden, where each section represents a different plot. In this “garden,” the northern states resemble fertile zones where factors like higher wages and strong employer-sponsored plans foster a notable increase in retirement savings compared to other regions. This fertile area produces significantly larger “crops” (savings), surpassing the national average. This analogy highlights territorial inequalities in retirement preparation, showing how regional and financial factors contribute to the growth of retirement funds across the country. Acushnet Holdings employees can use these prosperous regions as examples for building their own retirement plans effectively.
What type of retirement plan does Acushnet Holdings offer to its employees?
Acushnet Holdings offers a 401(k) retirement savings plan to its employees.
Is the 401(k) plan at Acushnet Holdings available to all employees?
Yes, the 401(k) plan at Acushnet Holdings is available to all eligible employees.
Does Acushnet Holdings provide any employer matching contributions to the 401(k) plan?
Yes, Acushnet Holdings provides employer matching contributions to help employees save for retirement.
How can employees at Acushnet Holdings enroll in the 401(k) plan?
Employees at Acushnet Holdings can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
What is the vesting schedule for employer contributions in the Acushnet Holdings 401(k) plan?
The vesting schedule for employer contributions in the Acushnet Holdings 401(k) plan typically follows a standard schedule, which employees can review in the plan documents.
Can employees at Acushnet Holdings take loans against their 401(k) savings?
Yes, employees at Acushnet Holdings may have the option to take loans against their 401(k) savings, subject to the plan's terms.
What investment options are available in the Acushnet Holdings 401(k) plan?
The Acushnet Holdings 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds.
How often can employees at Acushnet Holdings change their 401(k) contribution amounts?
Employees at Acushnet Holdings can typically change their 401(k) contribution amounts at any time, subject to plan rules.
Does Acushnet Holdings offer financial education resources for employees regarding their 401(k) plan?
Yes, Acushnet Holdings provides financial education resources to help employees make informed decisions about their 401(k) savings.
What is the maximum contribution limit for the Acushnet Holdings 401(k) plan?
The maximum contribution limit for the Acushnet Holdings 401(k) plan aligns with IRS guidelines, which are updated annually.