Unlocking the Potential of Your Duke Energy Retirement Savings Plan

Duke Energy offers a robust 401(k) program called the Duke Energy Retirement Savings Plan (RSP). For eligible employees, Duke Energy makes a 4% employer contribution with no employee contribution required. In addition, Duke Energy provides a 100% match on the first 6% of eligible contributions with true-up contributions to ensure full match eligibility by year-end. To help you get the full 10% contribution from Duke Energy, you only need to contribute 6% of your pre-tax income. 

And you have options! You can contribute pre-tax, Roth, or after-tax dollars—up to 75% of your eligible pay. Roth conversions are also available both in-plan and via backdoor strategies.  

Many tenured Duke Energy employees may also be covered under one or both of the company’s closed pension plans: 

• Final Average Pay (FAP) Pension: A traditional defined benefit plan offering early retirement starting at age 45 with 15 years of service.
• Cash Balance Plan (RCBP): Provides age- and service-based pay credits and 4% interest credits annually.

Both plans are PBGC-insured and offer annuity or lump sum distribution options depending on balance size. 

Duke Energy supports retirees with access to pre-65 medical, dental, and vision coverage. Post-65 retirees have access to Medicare-related resources and guidance, including UnitedHealthcare and Via Benefits platforms. 

Finally, select employees may receive restricted stock units (RSUs) as part of their compensation package. These can be quite complex for employees who don’t spend time managing them every day, so having a partner to walk you through the investment and tax planning can be a game changer. 

Determining the right amount to save in your Duke Energy Retirement Savings Plan (RSP) can be a complex decision, influenced by a multitude of factors. These can include your current age, projected retirement age, existing savings, and lifestyle expectations in retirement. Financial advisors often recommend saving at least 15% of your gross income for retirement. However, this is a general guideline, and your individual circumstances may necessitate a different approach. For instance, if you started saving later in life, you might need to contribute a higher percentage of your income to catch up. Conversely, if you’ve been diligent about saving from an early age, you may be closer to your retirement goals than you think. It’s also crucial to consider other financial obligations like mortgages, education expenses, and emergency funds when deciding how much to allocate to your Duke Energy RSP. The key is to strike a balance that allows you to live comfortably now while also preparing for a secure future. 

Saving for retirement is a long-term commitment, but the benefits are well worth it. The Duke Energy RSP offers a convenient and tax-efficient way to grow your retirement savings. If you have more questions about your Duke Energy RSP or retirement planning in general, consider speaking with a financial advisor to tailor a strategy that’s right for you.