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Century Communities Guide to Making the Most of Their Retirement Savings Across U.S. States

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. Century Communities 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 Century Communities 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 Century Communities 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:

Minnesota - $547,000
Washington - $550,700
Vermont - $550,000
Massachusetts - $563,000
Alaska – $570,000
New Hampshire - $570,000
North Dakota - $582,000
Virginia - $590,000
New Jersey - $600,000
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. Century Communities 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 Century Communities 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. Century Communities employees can use these prosperous regions as examples for building their own retirement plans effectively.

What type of retirement plan does Century Communities offer to its employees?

Century Communities offers a 401(k) retirement savings plan to help employees save for their future.

Is there a company match for contributions to the Century Communities 401(k) plan?

Yes, Century Communities provides a company match for employee contributions to the 401(k) plan, helping to enhance your retirement savings.

How can employees enroll in the Century Communities 401(k) plan?

Employees can enroll in the Century Communities 401(k) plan through the company’s designated benefits portal or by contacting the HR department for assistance.

What is the eligibility requirement to participate in the Century Communities 401(k) plan?

Generally, employees of Century Communities who meet specific criteria, such as age and length of service, are eligible to participate in the 401(k) plan.

Can employees change their contribution percentage to the Century Communities 401(k) plan?

Yes, employees can change their contribution percentage to the Century Communities 401(k) plan at any time, subject to the plan's rules.

What investment options are available in the Century Communities 401(k) plan?

The Century Communities 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Does Century Communities provide financial education resources for employees regarding the 401(k) plan?

Yes, Century Communities offers financial education resources and workshops to help employees understand their 401(k) options and make informed investment decisions.

What happens to my Century Communities 401(k) if I leave the company?

If you leave Century Communities, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the plan if permitted.

Are there any fees associated with the Century Communities 401(k) plan?

Yes, like most 401(k) plans, the Century Communities 401(k) plan may have administrative and investment fees. Employees can review the plan documents for detailed information.

How often can employees contribute to the Century Communities 401(k) plan?

Employees can contribute to the Century Communities 401(k) plan through payroll deductions, which occur on each pay period.

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For more information you can reach the plan administrator for Century Communities at 8390 East Crescent Parkway, Suite 650 Greenwood, CO 80111; or by calling them at 1-303-268-8390.