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

What type of retirement savings plan does SBA Communications offer?

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

Does SBA Communications match employee contributions to the 401(k) plan?

Yes, SBA Communications provides a matching contribution to employee 401(k) accounts, up to a certain percentage of their salary.

When can employees of SBA Communications enroll in the 401(k) plan?

Employees of SBA Communications can enroll in the 401(k) plan during the initial enrollment period upon hiring and during annual open enrollment periods.

Are there any eligibility requirements to participate in the SBA Communications 401(k) plan?

Yes, employees must meet specific eligibility criteria, such as a minimum period of service, to participate in the SBA Communications 401(k) plan.

What investment options are available within the SBA Communications 401(k) plan?

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

How can employees of SBA Communications change their contribution amounts to the 401(k) plan?

Employees can change their contribution amounts to the SBA Communications 401(k) plan by submitting a request through the company's benefits portal or contacting HR.

Can employees take loans against their 401(k) balance at SBA Communications?

Yes, SBA Communications allows employees to take loans against their 401(k) balance, subject to the plan's terms and conditions.

What happens to my 401(k) account if I leave SBA Communications?

If you leave SBA Communications, you can choose to roll over your 401(k) balance to another retirement account, cash it out, or leave it in the SBA Communications plan if eligible.

Does SBA Communications provide financial education resources for employees regarding the 401(k) plan?

Yes, SBA Communications offers financial education resources and workshops to help employees understand their 401(k) options and investment strategies.

Is there a vesting schedule for the employer match in the SBA Communications 401(k) plan?

Yes, there is a vesting schedule for the employer match in the SBA Communications 401(k) plan, which determines when you fully own the matched contributions.