While saving for retirement is not an easy task given the current state of the economy and household balance sheets, some cities are clearly better at placing money aside for the future than others.
America is saving for retirement — albeit at different rates. According to a new Fidelity analysis of 13 million 401(k) investors, Americans in major U.S. cities deferred an average of 12 percent or more of their paycheck in their employer-based retirement plans. The highest savings rates were found in cities located in California, North Carolina, Texas, and Connecticut. Meanwhile, Richmond, VA was home to companies with the highest average employer contribution rate of 5.8 percent.
“The good news is that Americans nationwide are saving for retirement,” said Jim MacDonald, president of Workplace Investing at Fidelity Investments. “These cities lead the way with some of the most robust 401(k) savers in the country. High savings rates and low proportions of outstanding 401(k) loans indicate that these U.S. workers are on the right path.”
Let’s take a look at the top five cities where American workers are saving the most for retirement.