Getty Images / Apichat Noipang
Maybe you've wondered if you have enough in your 401(k) nest egg compared to others in Florida. As it turns out, the average retirement savings is different depending on where you live, which makes sense, since the cost of living in each state is very different. So, how does your 401(k) compare to others in your area? A new study shows what people roughly have in that nest egg depending on which state in which they live.
Florida Average 401(k) Retirement Savings
So, what exactly is a 401(k)? According to Charles Schwab, a 401(k) is "an employer-sponsored retirement plan that comes with tax benefits." How it works is that "you put money into the 401(k) where it can be invested and potentially grow tax free over time." Charles Schwab also adds that in most cases, "you pick how much money you put in based on a percentage of your income."
Looking at national trends across the U.S., according to Unbiased, the average 401(k) balance in the U.S. is $115,710 if add up data for all age ranges. For those 65 and older, the average 401(k) balance is $232,710. They add that women usually have a lower 401(k) balance than men, and that male baby boomers have more than double the savings of their female counterparts, reports Bank of America. If you're wondering which industries are hot for having a good 401(k), the study says "the collective agriculture, mining, and construction industry has the highest average 401 (k) balance, at $176,369."
Those under 25, according to Unbiased, have an average balance of $5,236, 25-34 is $30,017, 35-44 is $76,354, 45-54 is $142,069, 55-64 is $207,874 and 65 and older is $232,710. The median is quite different, however, with those under 25 at $1,948, those 25-34 at $11,357, 35-44 at $28,318, 45-54 at $48,301, 55-64 at $71,168 and over 65 at $70,620.
Now, let's specifically get to Florida. How does your retirement savings stack up to those who are also in the state? Per the Unbiased report, the average retirement balance in Georgia is $428,997, and it's ranked No. 28 among states. A separate report from CNBC also stated that the state with the highest average retirement savings is Connecticut at $523,568, followed by New Hampshire at $494,562. Utah had the lowest average retirement savings of $300,392, followed by North Dakota at $310,766 and Washington D.C. at $325,671. The CNBC report used data from Empower, "an investing and budgeting app, looked at the average retirement savings of its 2.8 million dashboard users, and found that savers in certain regions of the U.S. save more than those in other areas."
