These 2 U.S. Regions Are Least Prepared for Retirement

Photo (cc) by aag_photos

Some states and regions are better off than others when it comes to access to — and participation in — employer-based retirement plans such as a 401(k) or traditional pension, a new report from the nonprofit Pew Charitable Trusts shows.

John Scott, director of Pew’s retirement savings project, explains in a news release:

“Workplace retirement savings plans can be a critical piece of the retirement security puzzle. But for millions of Americans, this piece is missing.”

For example, Pew found differences of more than 20 percent in rates of both access to and participation in employer-based retirement plans when comparing the state that is in first place — Wisconsin — with the state that finishes last, Florida.

Access rates for full-time, full-year, private sector wage and salary workers ages 18 to 64 in the two states are:

  • Wisconsin: 70 percent
  • 50-state average: 58 percent
  • Florida: 46 percent

Participation rates for full-time, full-year, private sector wage and salary workers ages 18 to 64:

  • Wisconsin: 61 percent
  • 50-state average: 49 percent
  • Florida: 38 percent

The South and West have the lowest access and participation rates. The Midwest, New England and parts of the Pacific Northwest have the highest rates.

The study found that state and regional differences are partly due to certain industries being concentrated in specific areas.

Among the industries that Pew analyzed independently, the leisure and hospitality industry was least likely to provide retirement benefits, with 34 percent of workers offered a plan. It also had one of the lowest industry participation rates, with 23 percent of workers participating in a plan.

Leisure and hospitality jobs are most concentrated in Nevada, Hawaii and Florida.

Employer and worker characteristics also play a role, with Pew finding wide variations based on:

  • Employer industry
  • Worker income
  • Worker age
  • Worker education
  • Worker race and ethnicity

If you’re coming up short in terms of retirement savings, be sure to visit the Money Talks News Solutions Center. There, you can find help with everything from budgeting to savings accounts to brokerages.

What’s your take on the Pew study’s findings about employer-sponsored retirement plans? Sound off in our Forums. It’s the place where you can speak your mind, explore topics in-depth, and post questions and get answers.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Most Popular
What Inflation Means for Social Security Checks in 2022
What Inflation Means for Social Security Checks in 2022

Recent inflation figures were ugly. Here’s what they hint about the next Social Security benefits adjustment.

If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

This iconic dinnerware is prized for everyday use as well as reselling for profit.

3 Colors That Can Ruin Your Car’s Resale Value
3 Colors That Can Ruin Your Car’s Resale Value

Select the wrong color for your next car, and it could depreciate twice as fast as others.

20 Things That Are Actually Worth Stockpiling
20 Things That Are Actually Worth Stockpiling

You don’t need a year’s supply of toilet paper to survive an outbreak, but consider stocking up on these items.

9 of the Best Things to Do When You Retire
9 of the Best Things to Do When You Retire

You’ve waited all your life for this moment. Make the most of your retirement.

Never Buy These 10 Things on Amazon
Never Buy These 10 Things on Amazon

Just because you can purchase something on Amazon doesn’t mean that you should.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.