New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Navigating Retirement: A Guide for Stepan Employees

'Stepan employees should carefully evaluate how state-to-state cost differences can reshape their retirement goals, as geographic decisions play a major role in long-term planning,' – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'Stepan employees can benefit from comparing state and international living costs to align their retirement plans with locations that support their long-term financial goals,' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

The financial requirements for a comfortable retirement across different U.S. states— How location impacts the savings needed for retirement.
Affordable and expensive retirement destinations— A comparison of high-cost states like Hawaii versus budget-friendly states such as Arkansas.
Alternative retirement options, including international living— Exploring cost-effective retirement choices abroad.

Many Stepan employees will retire after decades of service and careful financial planning. What is needed to retire comfortably varies greatly state by state, and some places require much larger reserves.

What Does Your Retirement Need?

GoBankingRates recently researched the amount needed to retire comfortably and found it to be fairly conservative. It uses data from the Federal Reserve Economic Data, the Zillow Home Value Index and the Social Security Administration.

The report examines savings needed for each age bracket assuming retirement at 65 and age 85. That assumes average Social Security payments of around USD 1,876 per month per person, which accounts for the required 20-year savings.

Cost Variations by State

For Stepan workers in New Jersey, Colorado and Maryland, more than USD 1 million may be needed to live comfortably after retirement. The most expensive state is Hawaii, which requires more than USD 3 million in estimated savings to cover retirement costs including Social Security benefits.

Conversely, states like Arkansas and Mississippi have more modest retirement scenarios with estimated savings needs of less than USD 500,000. Such areas might attract retirees who want affordability with a desirable lifestyle.

Considering International Retirement?

Those open to living abroad find Mexico and Portugal an economical but fulfilling retirement option. Lower living costs, tax incentives and structured residency programs may all help with financial security in retirement.

Choosing the Right Location

Stepan professionals need to consider geographic options and how they affect long-term financial security. For more on state-specific retirement affordability, visit GoBankingRates (link).

It also names top U.S. cities for retirement - Naples, Florida, or Sun City, Arizona. There is affordability, quality healthcare and a strong community life in these locations - factors that are becoming more important for retirement planning.

Final Thoughts

Stepan workers may want to read the latest GoBankingRates findings about what retirement savings are needed. This analysis details financial considerations for a secure retirement - whether in West Virginia or Hawaii - a high-cost financial destination.

Planning for retirement is preparing for an extended voyage. As sailors map their routes and anticipate changes in the sea, so must retirees navigate financial landscapes to create a structured retirement plan. All states have their advantages and disadvantages, like the conditions that mariners face.

Articles you may find interesting:

Source:

1. Kiplinger Staff. The Minimum Savings You Need To Retire in All 50 States . Kiplinger, Nov. 2024, www.kiplinger.com/retirement/social-security/minimum-savings-to-retire-by-state . Accessed 15 Apr. 2025.

2. International Living Staff. Best Places to Retire in 2025: The Annual Global Retirement Index . International Living, 28 Nov. 2024, internationalliving.com/the-best-places-to-retire/. Accessed 15 Apr. 2025.

3. AARP Staff. “9 Great Affordable Places to Retire Abroad.” AARP , Feb. 2025, www.aarp.org/retirement/planning-for-retirement/info-2025/places-to-retire-abroad-cheap.html . Accessed 15 Apr. 2025.

4. Csiszar, John. “15 Most Affordable Places To Retire Abroad.” Nasdaq , 25 Aug. 2024, www.nasdaq.com/articles/15-most-affordable-places-retire-abroad . Accessed 15 Apr. 2025.

4. Investopedia Staff. Retirement Living Costs: These 6 States Will Drain Your Savings the Fastest . Investopedia, Nov. 2024, www.investopedia.com/most-expensive-states-to-retire-8729918 . Accessed 15 Apr. 2025.

What is the purpose of the 401(k) plan at Stepan?

The purpose of the 401(k) plan at Stepan is to help employees save for retirement by allowing them to contribute a portion of their salary on a tax-deferred basis.

How can Stepan employees enroll in the 401(k) plan?

Stepan employees can enroll in the 401(k) plan by completing the enrollment form provided by the HR department or through the company’s benefits portal.

Does Stepan offer a company match on 401(k) contributions?

Yes, Stepan offers a company match on 401(k) contributions, which helps employees maximize their retirement savings.

What is the maximum contribution limit for the Stepan 401(k) plan?

The maximum contribution limit for the Stepan 401(k) plan is in accordance with IRS guidelines, which are updated annually.

Can Stepan employees change their contribution percentage at any time?

Yes, Stepan employees can change their contribution percentage at any time, subject to the plan's guidelines.

What investment options are available in the Stepan 401(k) plan?

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

When can Stepan employees take a loan against their 401(k) savings?

Stepan employees can take a loan against their 401(k) savings after meeting specific eligibility criteria set forth in the plan documents.

What happens to my Stepan 401(k) if I leave the company?

If you leave Stepan, you have several options for your 401(k), including rolling it over to an IRA or another employer’s plan, or cashing it out, subject to taxes and penalties.

Does Stepan provide any educational resources about the 401(k) plan?

Yes, Stepan provides educational resources and workshops to help employees understand their 401(k) options and make informed investment decisions.

Are there any fees associated with the Stepan 401(k) plan?

Yes, there may be administrative fees associated with the Stepan 401(k) plan, which are disclosed in the plan documents.