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Change Healthcare Guide to Making the Most of Their Retirement Savings Across U.S. States

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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. Change Healthcare 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 Change Healthcare 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 Change Healthcare 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:

  1. Minnesota - $547,000

  2. Washington - $550,700

  3. Vermont - $550,000

  4. Massachusetts - $563,000

  5. Alaska – $570,000

  6. New Hampshire - $570,000

  7. North Dakota - $582,000

  8. Virginia - $590,000

  9. New Jersey - $600,000

  10. 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. Change Healthcare 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 Change Healthcare 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. Change Healthcare employees can use these prosperous regions as examples for building their own retirement plans effectively.

What type of retirement savings plan does Change Healthcare offer?

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

How can I enroll in the 401(k) plan at Change Healthcare?

Employees can enroll in Change Healthcare's 401(k) plan by accessing the benefits portal and following the enrollment instructions provided.

Does Change Healthcare provide a company match for the 401(k) contributions?

Yes, Change Healthcare offers a company match for employee contributions to the 401(k) plan, subject to specific terms and conditions.

What is the eligibility requirement to participate in Change Healthcare's 401(k) plan?

Employees are typically eligible to participate in Change Healthcare's 401(k) plan after completing a certain period of service, as outlined in the plan documents.

Can I change my contribution percentage to the Change Healthcare 401(k) plan?

Yes, employees can change their contribution percentage to the Change Healthcare 401(k) plan at any time through the benefits portal.

What investment options are available in Change Healthcare's 401(k) plan?

Change Healthcare's 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, allowing employees to choose based on their risk tolerance.

Is there a vesting schedule for the company match in Change Healthcare's 401(k) plan?

Yes, Change Healthcare has a vesting schedule for the company match, which means employees must work for a certain period to fully own the matched contributions.

How often can I make changes to my investment allocations in Change Healthcare's 401(k) plan?

Employees can make changes to their investment allocations in Change Healthcare's 401(k) plan on a regular basis, typically quarterly or as specified in the plan documents.

What happens to my Change Healthcare 401(k) if I leave the company?

If you leave Change Healthcare, 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 eligible.

Does Change Healthcare offer financial planning resources for employees regarding the 401(k) plan?

Yes, Change Healthcare provides access to financial planning resources and tools to help employees make informed decisions about their 401(k) savings.

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For more information you can reach the plan administrator for Change Healthcare at 5995 Windward Parkway, Suite 100 Alpharetta, GA 30005; or by calling them at 1-770-282-1000.

*Please see disclaimer for more information

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