Thursday, November 8, 2012

The Rise of the 401k: Which states fare best?

A new report has shown that those working in blue states hold a more impressive 401k balance than their red state counterparts, although overall Americans are saving more for retirement.

The report, “A State-by-State Analysis of American Retirement Savings from 2008 to 2011," uses data gathered during the 2008 election. It reveals that employees working at companies headquartered in blue states had larger median 401k balances than  red state employees.

Here are their findings:

  • The average 401k balance for blue state voters was $38,616, while the red state plans averaged $31,904. This balance gap has remained steady to this year.
  • Between 2008-2011, retirement balances for red-state employees are up 28 percent and have risen 25 percent for blue state employees.
  • Mississippi and Delaware have seen the greatest balance increases at 85 percent and 50 percent, respectively.
  • Three states with low per-capita income ranked pretty high on retirement plan gains, namely Michigan, Maine and West Virginia.
  • Of the 20 top best performing states that made the report's list, four were this year's swing states won by President Obama.  
You can read more about the results at FutureAdvisor's site, which provides a state-by-state performance analysis.

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