Minnesotans– above average savers
Posted on December 29th, 2008 – 7:00 AMBy Kara McGuire
Oh, I know the Garrison Keillor “above average” business is beaten to death in this frozen tundra that we call home. But I can’t help but make the reference once a year….
The Employee Benefit Research Institute says that 55.3 percent of the country’s full-time workers ages 21- to 64 participated in a workplace retirement plan. In Minnesotans are above average, with 64.4 percent of workers participate in a workplace plan. Our neighbors in Wisconsin topped the list with 67.7 percent of workers enrolled in retirement plans.
Curious? Here’s the list of all 50 states.
My fear is that in this economy, more and more companies will ditch 401(k) matches and other savings incentives in the name of cutting expenses. If that happens, promise me you’ll keep contributing, maybe even upping your contribution by a point or two or three? If your total contribution (your cash plus matching money) into a retirement plan isn’t a double digit number, I’d take a close look at whether you’re on track to retire.
By the way, for you maxer-outers, the 2009 maximum contribution rate for 401(k)s increases by $1,000 to $16,500. Those 50 and older can contribute $5,500 above and beyond that.
5 Responses to "Minnesotans– above average savers"
and by “double digit number”, I’m assuming you mean a percentage of income, right Kara? Because $10 a paycheck, while certainly better than nothing, isn’t all that much. Although it will definitely buy you more today than this time last year!
Points, in financial terms, generally mean percentage points.
I am one of the people who actually is looking at temporarily scaling back my 401k contributions from 15% (with match) to 10% (with match). This economy is hard, even with possible deflation on consumables, other areas, such as health coverage keep climbing, and it hurts.
Dang! Interest rates on savings accounts dropped again.. Ahhh anything to get Americans to spend more. 
I’ve increased my 401k contribution upto 25% plus I get a 6% company match on top of that. I’m not trying to chance my retirement at this point…
Jeff-one thing I have been thinking about lately is deferring less. At this point in my life, my overall tax rate is probably the lowest it will be during my lifetime. Not sure what to do yet…but deferring taxes seems to be a gamble right now.
