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

What is the purpose of OGE Energy's 401(k) Savings Plan?

The purpose of OGE Energy's 401(k) Savings Plan is to help employees save for retirement by providing a tax-advantaged way to contribute a portion of their salary.

How can I enroll in OGE Energy's 401(k) Savings Plan?

Employees can enroll in OGE Energy's 401(k) Savings Plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.

What types of contributions can I make to OGE Energy's 401(k) Savings Plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and, in some cases, catch-up contributions if they are age 50 or older in OGE Energy's 401(k) Savings Plan.

Does OGE Energy offer a company match for 401(k) contributions?

Yes, OGE Energy offers a company match for employee contributions to the 401(k) Savings Plan, which helps to enhance retirement savings.

What is the vesting schedule for OGE Energy's 401(k) company match?

The vesting schedule for OGE Energy's 401(k) company match typically follows a graded vesting schedule, which means employees become vested in the company match over a specified period of service.

Can I take loans against my 401(k) balance at OGE Energy?

Yes, OGE Energy's 401(k) Savings Plan allows employees to take loans against their account balance, subject to certain terms and conditions.

What investment options are available in OGE Energy's 401(k) Savings Plan?

OGE Energy's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and potentially company stock, allowing employees to diversify their retirement savings.

How often can I change my contribution amount to OGE Energy's 401(k) Savings Plan?

Employees can change their contribution amount to OGE Energy's 401(k) Savings Plan at any time, typically through the HR portal or by contacting HR.

Is there a minimum contribution requirement for OGE Energy's 401(k) Savings Plan?

Yes, OGE Energy's 401(k) Savings Plan may have a minimum contribution requirement, which is typically outlined in the plan documents provided to employees.

How can I check my 401(k) balance with OGE Energy?

Employees can check their 401(k) balance with OGE Energy by logging into the plan's online portal or by contacting the plan administrator for assistance.

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For more information you can reach the plan administrator for OGE Energy at , ; or by calling them at .

*Please see disclaimer for more information

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