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

What type of retirement savings plan does Walgreens Boots Alliance offer to its employees?

Walgreens Boots Alliance offers a 401(k) retirement savings plan to its employees.

How can employees of Walgreens Boots Alliance enroll in the 401(k) plan?

Employees of Walgreens Boots Alliance can enroll in the 401(k) plan through the company’s HR portal or by contacting the benefits department for assistance.

Does Walgreens Boots Alliance match employee contributions to the 401(k) plan?

Yes, Walgreens Boots Alliance provides a matching contribution to the 401(k) plan, subject to certain limits.

What is the maximum employee contribution percentage allowed in the Walgreens Boots Alliance 401(k) plan?

The maximum employee contribution percentage allowed in the Walgreens Boots Alliance 401(k) plan is in line with IRS limits, which can change annually.

Are there any waiting periods for new employees to join the Walgreens Boots Alliance 401(k) plan?

Walgreens Boots Alliance typically allows new employees to join the 401(k) plan after completing a specified waiting period, usually within the first few months of employment.

Can employees of Walgreens Boots Alliance take loans against their 401(k) savings?

Yes, employees of Walgreens Boots Alliance may have the option to take loans against their 401(k) savings, subject to the plan's terms.

What investment options are available within the Walgreens Boots Alliance 401(k) plan?

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

How often can employees change their contribution amounts to the Walgreens Boots Alliance 401(k) plan?

Employees of Walgreens Boots Alliance can typically change their contribution amounts at any time, subject to the plan’s guidelines.

What happens to the 401(k) savings if an employee leaves Walgreens Boots Alliance?

If an employee leaves Walgreens Boots Alliance, they can choose to roll over their 401(k) savings to another retirement account, cash out, or leave the savings in the plan, depending on the balance and plan rules.

Does Walgreens Boots Alliance provide educational resources to help employees understand their 401(k) options?

Yes, Walgreens Boots Alliance offers educational resources and workshops to help employees understand their 401(k) options and make informed decisions.