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

What is the purpose of the 401(k) plan offered by Toro?

The purpose of the 401(k) plan offered by Toro is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax or Roth basis.

How does Toro match employee contributions to the 401(k) plan?

Toro matches employee contributions up to a certain percentage of their salary, typically dollar-for-dollar up to a specified limit, to encourage savings for retirement.

When can employees at Toro start contributing to the 401(k) plan?

Employees at Toro can start contributing to the 401(k) plan after completing their eligibility period, which is typically outlined in the employee handbook.

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

Yes, there may be administrative and investment fees associated with Toro's 401(k) plan, which are disclosed in the plan documents provided to employees.

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

Yes, employees at Toro may have the option to take loans against their 401(k) savings, subject to the terms and conditions outlined in the plan.

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

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

How can Toro employees access their 401(k) account information?

Toro employees can access their 401(k) account information online through the plan's designated website or mobile app, where they can view balances and make changes.

What is the vesting schedule for Toro's 401(k) plan?

The vesting schedule for Toro's 401(k) plan determines how long employees must work at Toro to fully own the employer's contributions, typically ranging from immediate vesting to a graded schedule.

Can Toro employees change their contribution percentage at any time?

Yes, Toro employees can generally change their contribution percentage at any time, subject to the plan's rules and any designated enrollment periods.

What happens to the 401(k) savings if an employee leaves Toro?

If an employee leaves Toro, they can either roll over their 401(k) savings to another retirement account, leave the funds in the Toro plan (if eligible), or cash out, subject to taxes and penalties.