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Norfolk Southern 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. Norfolk Southern 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 Norfolk Southern 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 Norfolk Southern 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. Norfolk Southern 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 Norfolk Southern 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. Norfolk Southern employees can use these prosperous regions as examples for building their own retirement plans effectively.

What is the primary purpose of the 401(k) plan offered by Norfolk Southern?

The primary purpose of the 401(k) plan offered by Norfolk Southern is to help employees save for retirement by providing a tax-advantaged way to invest their earnings.

Does Norfolk Southern offer a matching contribution for its 401(k) plan?

Yes, Norfolk Southern offers a matching contribution to help employees maximize their retirement savings.

How can employees at Norfolk Southern enroll in the 401(k) plan?

Employees at Norfolk Southern can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What types of investment options are available in Norfolk Southern's 401(k) plan?

Norfolk Southern's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Can employees at Norfolk Southern change their contribution amount to the 401(k) plan?

Yes, employees at Norfolk Southern can change their contribution amount at any time, subject to the plan's guidelines.

What is the vesting schedule for the employer match in Norfolk Southern's 401(k) plan?

The vesting schedule for the employer match in Norfolk Southern's 401(k) plan typically follows a graded vesting schedule, which means employees gradually earn ownership of the employer contributions over time.

Are there any fees associated with Norfolk Southern's 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with Norfolk Southern's 401(k) plan, which are disclosed in the plan documents.

Can employees at Norfolk Southern take loans against their 401(k) savings?

Yes, employees at Norfolk Southern may have the option to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What happens to a Norfolk Southern employee's 401(k) if they leave the company?

If a Norfolk Southern employee leaves the company, they have several options for their 401(k), including rolling it over to an IRA or a new employer's plan, or cashing it out (though this may incur taxes and penalties).

How often can employees at Norfolk Southern change their investment allocations in the 401(k) plan?

Employees at Norfolk Southern can typically change their investment allocations at any time, but there may be restrictions on frequent trading.