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For many Americans, not having enough money for retirement is a major concern. And where they live could make a big difference to what they’ve saved so far — and how much they may need to save in the future.
The amount Americans have saved for retirement varies widely by state, according to data on the average retirement balance by state from the U.S. Census Bureau. The state with the highest retirement savings balance is Massachusetts, with an average of $150,000, while the lowest is Mississippi with an average balance of $35,000.
Read on to learn the retirement savings by state in the U.S., find out where your state factors in, and discover why some states score higher than others.
Key Points
• Average retirement savings vary widely across states, ranging from a high of $150,000 in Massachusetts to a low of $35,000 in Mississippi, based on Census Bureau data.
• According to one guideline, people should aim to have about 10x their income saved if they retire at age 67.
• States with higher household incomes tend to have greater retirement savings, along with higher participation rates in tax-advantaged plans like 401(k)s and IRAs.
• Cost of living differences across states significantly impact retirement savings adequacy, with lower cost-of-living states allowing retirement dollars to stretch considerably further.
• Tax burdens vary by state, influencing both the ability to save for retirement and how far accumulated retirement funds will go during retirement years.
The Average Retirement Savings by State
Looking at the average retirement savings by state can help give you a better idea of how much money you need to retire. According to a guideline by Fidelity, people should aim to have 8 times their income saved if they retire at 60, and 10 times their income saved if they retire at age 67.
To determine retirement ages by state, we used the most recent (2023) U.S. Census Bureau data on state-level wealth to determine the average retirement savings and rankings for the 40 states with available data. (Ten states had no data available.) Here’s what we found.
Alabama
• Average Retirement Balance: $46,000
• Rank: 38 out of 40
Alaska
• Average Retirement Balance: N/A*
Arizona
• Average Retirement Balance: $69,500
• Rank: 25 out of 40
Arkansas
• Average Retirement Balance: $54,490
• Rank: 32 out of 40
California
• Average Retirement Balance: $100,000
• Rank: 11 out of 40
Colorado
• Average Retirement Balance: $100,000
• Rank: 10 out of 40
Connecticut
• Average Retirement Balance: $118,400
• Rank: 6 out of 40
D.C., Washington
• Average Retirement Balance: N/A
Delaware
• Average Retirement Balance: N/A
Florida
• Average Retirement Balance: $78,000
• Rank: 18 out of 40
Georgia
• Average Retirement Balance: $72,000
• Rank: 21 out of 40
Hawaii
• Average Retirement Balance: $149,000
• Rank: 2 out of 40
Idaho
• Average Retirement Balance: $89,000
• Rank: 14 out of 40
Illinois
• Average Retirement Balance: $111,000
• Rank: 8 out of 40
Indiana
• Average Retirement Balance: $71,700
• Rank: 22 out of 40
Iowa
• Average Retirement Balance: $70,000
• Rank: 23 out of 40
Kansas
• Average Retirement Balance: $56,000
• Rank: 30 out of 40
Kentucky
• Average Retirement Balance: $50,000
• Rank: 36 out of 40
Louisiana
• Average Retirement Balance: $50,000
• Rank: 37 out of 40
Maine
• Average Retirement Balance: N/A
Maryland
• Average Retirement Balance: $120,000
• Rank: 5 out of 40
Massachusetts
• Average Retirement Balance: $150,000
• Rank: 1 out of 40
Michigan
• Average Retirement Balance: $85,000
• Rank: 16 out of 40
Minnesota
• Average Retirement Balance: $111,000
• Rank: 7 out of 40
Mississippi
• Average Retirement Balance: $35,000
• Rank: 40 out of 40
Missouri
• Average Retirement Balance: $57,000
• Rank: 28 out of 40
Montana
• Average Retirement Balance: $76,000
• Rank: 19 out of 40
Nebraska
• Average Retirement Balance: N/A
Nevada
• Average Retirement Balance: N/A
New Hampshire
• Average Retirement Balance: N/A
New Jersey
• Average Retirement Balance: $134,000
• Rank: 4 out of 40
New Mexico
• Average Retirement Balance: $50,000
• Rank: 35 out of 40
New York
• Average Retirement Balance: $80,000
• Rank: 17 out of 40
North Carolina
• Average Retirement Balance: $56,000
• Rank: 29 out of 40
North Dakota
• Average Retirement Balance: N/A
Ohio
• Average Retirement Balance: $100,000
• Rank: 12 out of 40
Oklahoma
• Average Retirement Balance: $39,450
• Rank: 39 out of 40
Oregon
• Average Retirement Balance: $92,400
• Rank: 13 out of 40
Pennsylvania
• Average Retirement Balance: $101,800
• Rank: 9 out of 40
Rhode Island
• Average Retirement Balance: N/A
South Carolina
• Average Retirement Balance: $50,300
• Rank: 34 out of 40
South Dakota
• Average Retirement Balance: N/A
Tennessee
• Average Retirement Balance: $74,500
• Rank: 20 out of 40
Texas
• Average Retirement Balance: $55,000
• Rank: 31 out of 40
Utah
• Average Retirement Balance: $62,800
• Rank: 26 out of 40
Vermont
• Average Retirement Balance: N/A
Virginia
• Average Retirement Balance: $85,200
• Rank: 15 out of 40
Washington
• Average Retirement Balance: $143,400
• Rank: 3 out of 40
West Virginia
• Average Retirement Balance: $54,400
• Rank: 33 out of 40
Wisconsin
• Average Retirement Balance: $58,000
• Rank: 27 out of 40
Wyoming
• Average Retirement Balance: N/A
*States marked N/A had no data available.
Why Some States Rank Higher
Some states rank higher than others in retirement savings by state for a number of different reasons. For one thing, residents of states where the household income is higher tend to have more retirement savings than states with a lower household income.
In addition, some states have a higher rate of participation in tax-advantaged retirement plans, including 401(k)s and IRAs, than others, which can help them save for retirement. This is something to think about when planning for your own retirement and determining where to put your retirement money.
For example, if your employer has a 401(k), it’s a good idea to participate if you can and contribute at least enough to get the employer match (which is essentially free money) if there is one. Even if you are enrolled in a 401(k), you might also want to consider opening an IRA to save even more as you build your nest egg.
Keep in mind that there are different kinds of IRAs. With a traditional IRA you make contributions with pre-tax dollars and pay taxes on the money when you withdraw it in retirement. With a Roth IRA you make after-tax contributions and then take qualified withdrawals tax-free in retirement.
If you don’t have access to a 401(k) because you’re a small business owner or self-employed, you may want to consider a SEP IRA to save for retirement.
Finally, it’s important to note that the cost of living is higher in some states than in others, which could mean that retirement dollars may go farther in places where the cost of living is lower. And some states have lower tax burdens than others.
As you’re thinking about when to start saving for retirement, considering your state’s cost of living can be helpful. And if you’re considering an IRA, you can factor in the tax implications of Roth vs. traditional IRA, as well as the tax bracket you expect to be in during retirement, to see what might be most beneficial.
Recommended: Are Mutual Funds Good for Retirement?
How Much Do You Need to Retire Comfortably in Each State?
How much you need to retire comfortably is largely determined by a state’s cost of living, but it will vary even more based on your own personal financial situation, the retirement lifestyle you’re aiming to pursue, and your anticipated retirement expenses. Conducting a retirement gap analysis can help determine if you’re on track for retirement by comparing what you have saved to what you will need to retire.
As you work through this process, you may want to use a retirement calculator or consult with a financial advisor to help you determine just how much you should be saving for retirement based on your lifestyle, what you expect to spend in retirement, where you want to live, your current and projected financial situation, and a slew of other factors.
By Generation Breakdown
The amount Americans have saved in different retirement plans varies by generation. According to data from Fidelity, younger generations generally have less saved up for retirement than older ones.
Gen Z
• Average 401(k) Balance: $13,500
• Average IRA Balance: $6,672
Millennials
• Average 401(k) Balance: $67,300
• Average IRA Balance: $25,109
Gen X
• Average 401(k) Balance: $192,300
• Average IRA Balance: $103,952
Baby Boomers
• Average 401(k) Balance: $249,300
• Average IRA Balance: $257,002
Recommended: Average Retirement Savings by Age
The Takeaway
The average retirement savings in the U.S. varies by state, and a variety of factors can impact how much you’ll need to retire comfortably. Your state’s costs of living, the age you start saving for retirement, and your state’s tax burden will all play a role.
As you’re taking a look at your retirement savings, you may want to explore additional options beyond a 401(k), such as opening an IRA or setting up a brokerage account. Taking the time now to see what options might be right for you could be time well spent when it comes to reaching your financial goals.
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FAQ
What is the average retirement savings in the US overall?
The average retirement savings for families in the U.S. overall is about $333,940, according to the most recent Federal Reserve Survey of Consumer Finances. However, the median retirement savings balance, which may more accurately reflect what the typical U.S. household has saved, is $87,000. (The average retirement balance can be skewed by balances that are higher and lower.)
Which U.S. state has the highest average retirement savings?
Massachusetts is the state with the highest average retirement savings balance of $150,000. Hawaii is a close second with an average retirement savings balance of $149,000.
Does the cost of living affect how much I need to retire?
Yes. The higher a state’s cost of living, the more things typically cost in that state, and the more money you may need for retirement. Generally speaking, in states with a higher cost of living, your retirement dollars may not stretch as far as they would in places where the cost of living is lower.
How much should a 30-year-old have saved for retirement?
According to one guideline by Fidelity, people should aim to have 1x their income saved by age 30. That milestone — along with saving 3x their income by age 40, 6x by 50, and 8x by 60 — should help individuals reach a goal of 10x their income by age 67, which is the amount they are estimated to need to afford their preretirement lifestyle.
How can I catch up on my retirement savings?
To help catch up on or build your retirement savings, you could contribute at least enough to your workplace 401(k) to take advantage of the employer 401(k) match. If you are age 50 or older, you could also make annual catch-up contributions to your 401(k) that allow you to save additional money in your plan (the catch-up contribution limit typically changes annually).
You might also want to consider opening an IRA if you don’t have one (individuals aged 50 and up can make IRA catch-up contributions as well). Weigh your options carefully to help determine what catch-up savings and investment strategy is best for you.
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