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. Amerisourcebergen 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 Amerisourcebergen 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 Amerisourcebergen 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. Amerisourcebergen 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 Amerisourcebergen 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. Amerisourcebergen employees can use these prosperous regions as examples for building their own retirement plans effectively.
What type of retirement savings plan does AmerisourceBergen offer to its employees?
AmerisourceBergen offers a 401(k) retirement savings plan to help employees save for their future.
How does AmerisourceBergen match employee contributions to the 401(k) plan?
AmerisourceBergen provides a matching contribution up to a certain percentage of the employee's salary, which varies based on the plan guidelines.
Can employees at AmerisourceBergen choose how to invest their 401(k) contributions?
Yes, employees at AmerisourceBergen can select from a variety of investment options within the 401(k) plan based on their individual risk tolerance and retirement goals.
What is the eligibility requirement for AmerisourceBergen employees to participate in the 401(k) plan?
Employees must meet specific eligibility criteria, such as length of service and age, to participate in AmerisourceBergen's 401(k) plan.
Does AmerisourceBergen allow employees to take loans from their 401(k) accounts?
Yes, AmerisourceBergen allows employees to take loans from their 401(k) accounts under certain conditions as outlined in the plan documents.
Are there any fees associated with AmerisourceBergen’s 401(k) plan?
Yes, there may be administrative fees associated with the management of AmerisourceBergen's 401(k) plan, which are disclosed in the plan documentation.
How can AmerisourceBergen employees access their 401(k) account information?
Employees can access their 401(k) account information through the online portal provided by the plan administrator designated by AmerisourceBergen.
What happens to an employee's 401(k) balance if they leave AmerisourceBergen?
If an employee leaves AmerisourceBergen, they have several options for their 401(k) balance, including rolling it over to another retirement account or leaving it in the AmerisourceBergen plan, subject to the plan's rules.
Does AmerisourceBergen offer any educational resources for employees regarding their 401(k) plan?
Yes, AmerisourceBergen provides educational resources and workshops to help employees understand their 401(k) options and make informed investment decisions.
Can AmerisourceBergen employees change their contribution rate to the 401(k) plan at any time?
Yes, employees at AmerisourceBergen can change their contribution rate to the 401(k) plan during designated enrollment periods or as allowed by the plan.