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Performance Food Group 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. Performance Food Group 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 Performance Food Group 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 Performance Food Group 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. Performance Food Group 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 Performance Food Group 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. Performance Food Group employees can use these prosperous regions as examples for building their own retirement plans effectively.

What type of retirement plan does Performance Food Group offer to its employees?

Performance Food Group offers a 401(k) retirement savings plan to its employees.

Does Performance Food Group match employee contributions to the 401(k) plan?

Yes, Performance Food Group provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.

What is the eligibility requirement to participate in the Performance Food Group 401(k) plan?

Employees of Performance Food Group are eligible to participate in the 401(k) plan after completing a specific period of service, typically outlined in the plan documents.

Can employees of Performance Food Group choose how their 401(k) contributions are invested?

Yes, employees can choose from a variety of investment options available within the Performance Food Group 401(k) plan.

How can employees of Performance Food Group enroll in the 401(k) plan?

Employees can enroll in the Performance Food Group 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What is the maximum contribution limit for the Performance Food Group 401(k) plan?

The maximum contribution limit for the Performance Food Group 401(k) plan is in line with IRS guidelines, which may change annually.

Does Performance Food Group offer a Roth 401(k) option?

Yes, Performance Food Group offers a Roth 401(k) option, allowing employees to make after-tax contributions to their retirement savings.

Are there any fees associated with the Performance Food Group 401(k) plan?

Yes, there may be administrative and investment fees associated with the Performance Food Group 401(k) plan, which are disclosed in the plan documents.

When can employees of Performance Food Group access their 401(k) funds?

Employees can access their 401(k) funds upon reaching retirement age, or in cases of hardship, termination of employment, or other qualifying events as defined by the plan.

How often can employees change their contribution percentage in the Performance Food Group 401(k) plan?

Employees can change their contribution percentage at designated times throughout the year, as specified in the Performance Food Group 401(k) plan guidelines.