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Retirement plan participation varies by region

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By McLean Robbins
December 2, 2008

Employees in Midwestern and Northeastern states are more likely to participate in retirement plans than their Southern and Western counterparts, states new data from the nonpartisan Employee Benefit Research Institute.

According to 2007 data, wage and salary workers in Florida have the lowest probability (36.4%) of enrolling in a retirement plan, while those living in Iowa are the most likely (58.3%) to contribute to such accounts, reports EBRI.

Among salaried workers, Wisconsin took top place (54.4% among private wage and salary workers, and 67.7% among full-time wage and salary workers). Again, Florida came in last, with only 32.3% of all workers taking part in a retirement account.

The study also reveals that New Jersey residents working in the public sector are most likely to participate in a retirement plan (82.1%), compared to other U.S. public sector workers, followed closely by Idaho and Ohio at 81.9% and 81.7%, respectively. Louisiana residents employed in the public sector were least likely (68.8%) to participate in a retirement plan.

If you're searching for ways to increase worker participation, take a listen to the helpful suggestions on our recent podcast with Dean Kohmann of Charles Schwab.


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