New research from the Employee Benefit Research Institute (EBRI) reveals how many wage and salary workers in each state participate in 401(k)-type plans. Here we present the top and bottom 5 states in terms of 401(k) participation by employees.
Overall, 43.42 million wage and salary workers participated in a 401(k)-type plan in 2003, the most recent year in which individual state-by-state data is available. This figure represents 36.4% participation rate of wage and salary workers nationwide.
Here are the top 5 states for 401(k) participation:
- Alaska 49.1% (0.42 million workers)
- Iowa 43.3% (0.64 million)
- Maryland 41.7% (0.94 million)
- Wisconsin 41.3% (1.16 million)
- New Mexico 41.1% (0.17 million)
Honorable mentions include Michigan, Rhode Island, South Carolina, and Virginia, which all had participation rates between 40.1-40.9%, still well above the national average.
Here are the bottom 5 states for 401(k) participation:
- West Virginia 24.5% (0.18 million)
- Alabama 26.1% (0.42 million)
- Utah 26.6% (0.34 million)
- Kentucky 27.1% (0.57 million)
- Nevada 27.9% (0.21 million)
Arizona, California, Florida, and Tennessee also had participation rates below 30%, considerably below the national average.