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Call it the Great Unretirement. Millions of Americans who are of retirement age are still working. According to one recent analysis of U.S. Census Bureau data, 22% of people aged 65 or older are still clocking hours professionally, with almost one in four of those being self-employed.

The reasons for working past age 65 can vary: The desire to stay engaged and challenged is one; the realities of needing to bring in income to keep pace with inflation and rising expenses is another.

No matter what your motivation, there are opportunities for seniors to work, including home-based ones. Here, learn about some of the most popular career paths to pursue later in life, from the privacy and comfort of your home.

11 Work-at-Home Jobs for Retirees

Consider these 11 work-at-home jobs for seniors; one or more may suit your skills and interests. Hours will vary, depending on how much time you have available and how much demand there is. Given that these are online jobs, you will probably need your own computer and headset or earbuds. Some companies may provide workers with tech gear.

1. Instructor

The online learning industry is booming: It’s expected to grow 20% year over year from now through 2030. Being an online instructor can therefore be a fast-growing job opportunity, too.

Almost anything you’ve mastered can be turned into an online course: baking, strength training, or traveling on the cheap. Whether it’s a hobby or a profession, you might be able to convert it to profit in an online course that students can purchase. Sites like Teachable and Coursera allow would-be teachers to set up an account and create courses that could provide passive income for years.

•   Median pay: $30.33/hour

•   Qualifications: Will depend on what you are teaching; in some cases, simply your own experience and knowledge is enough. In others, you may need credentials, such as post-grad degrees or proven success in a particular realm (whether gardening or fundraising).

2. Consultant

Using the skills you cultivated during your career can be a wise way to earn money when you’re a senior. If you happen to have years of experience in a field such as business or design, taking on clients as a consultant can be a great way to share your expertise and bring in income. Sites like LinkedIn and Indeed can also help, allowing you to search for job opportunities by location, contract status, and experience level.

•   Median pay: $47.73

•   Qualifications: You’ll need to show that you are qualified to advise on a topic based on a track record of business success. Using your professional and personal network to find clients can also be important.

3. Tutor

If you have the skills to teach but don’t want to do all the back-end work of creating and selling a course, look for jobs tutoring online. Tutors are hired not only by U.S. schools, individuals, and companies but also by international ones, making it potentially a flexible and lucrative path.

•   Median pay: $18.80

•   Qualifications: These will vary with the opportunity. Some people may be able to tutor simply based on having deep knowledge of a topic or having aced a subject in school. Others may require teaching licenses and credentials.

4. International English Teacher

The more interconnected the world becomes, the more important it is for people around the world to be able to speak a common language. If you are a native English speaker or if you speak English really well, you may qualify to teach English to students around the world. For this role, you’ll likely need to get a certificate, but once you are qualified, you can apply for jobs teaching online or even set up your own business.

How much you earn as a teacher can depend on whether you are teaching individuals or working with a larger agency, which may have deeper pockets.

•   Median pay: $26

•   Qualifications: These will vary. Some people in more informal settings may not need credentials. Otherwise, it can be vital to have a valid state teaching license and either a TEFL or CELTA certificate, reflecting that you are trained and ready to teach English to others.

5. Customer Support Agent

Customer support agents work with a business’ clients on the phone, through a chat function, on social media, or even through email to address questions. They typically help customers with things like making returns, processing exchanges, and resolving billing problems.

Agents must have good communication skills, empathy, solid problem-solving skills, and enough technical aptitude to use the company’s customer support system.

•   Median pay: $18.80

•   Qualifications: Depending on the job, you may need prior customer service experience. Typically, companies will offer training.

Recommended: How to Earn Residual Income

6. Technical Support Agent

This role is similar to customer support, except you will be solving customers’ technical issues, often with a device, a website, or an app. For example, the customer might need help changing their billing address on an app they use, or they could require guidance on using software they bought. You will need some technical know-how, but often companies train employees and provide a knowledge database for them to use to help resolve customer problems.

•   Median pay: $21.13

•   Qualifications: Varies depending on the company doing the hiring. It is common for businesses to train their agents to know the ins and outs of their product or service so they can help clients.

7. Travel Agent

Booking travel may seem to be a self-service online task these days, but there are still plenty of travel businesses that need employees. These might include travel companies that work with corporate clients or medical centers that help patients with travel logistics. Some of these hire and train individuals to manage travel booking.

Also, if you have expertise in a certain kind of travel (such as multigenerational travel to Disney properties or budget travel), you might be able to offer travel agent services on that front.

Being organized and having good customer service skills is important in this position, and having experience with the intricacies of travel arrangements can help. Some jobs, including more lucrative ones, may require specific credentials or knowledge of travel software.

•   Median pay: $20.64

•   Qualifications: Will depend upon the job. Some may hire those without specific travel experience but with good people skills; others may want candidates to be a certified travel associate.

8. Virtual Assistant

A virtual assistant tackles all kinds of tasks, from scheduling appointments to writing emails to updating clients’ social media accounts. Virtual assistant jobs can be great part-time gigs for seniors at home because they often only require the skills you already use to manage your own life. If you’re particularly good at management and working with executives, you can snag lucrative clients and really see your retirement earnings soar.

•   Median pay: $24

•   Qualifications: Will vary depending on the particular job. Some clients may seek prior administrative assistant experience; others may want an individual who is familiar with certain travel booking software.

9. Bookkeeper

Obviously, having experience in the bookkeeping field can be an asset for this role. You can help small business clients who don’t have the budget for a full-time bookkeeper or a big accounting firm manage their finances. These businesses could include local restaurants, small shops, or individual medical practitioners.

•   Median pay: $24.31

•   Qualifications: Some companies will train employees; others will want those who are already familiar with software such as QuickBooks, so it can be wise to train up on your own time. While a degree in business or accounting can be a plus, on-the-job learning may be possible, regardless of your degree.

10. Tax Preparer

Tax preparers can be employed by firms like H&R Block, who train them before tax season, or independently, working directly with clients. A lot of tax preparation is formulaic, but to serve clients well, it is key to be familiar with all the rules that change from year to year.

Also, this tends to be a seasonal job, with crunch time leading up to Tax Day in April.

•   Median pay: $18

•   Qualifications: As noted, the company you work for may train you in proper practices, and it’s important to keep on top of the latest tax code changes.

11. Data Entry Specialist

If you can type quickly and have an eye for detail, data entry may be for you. It can be a precise and rote job, putting information into spreadsheets and forms. You can generally land a data entry role without any experience, but if you go for a position in a field where you have expertise — say law, medical records, insurance, or consumer packaged goods — the pay is likely to be higher than elsewhere. That can help pad out your savings account or pay bills.

•   Median pay: $20

•   Qualifications: As noted, jobs may be available without related experience.

Recommended: 11 Benefits of Having a Side Hustle

Spotting a Scam

As with all things online, there’s always a possibility that something may not be quite as it seems, and that includes online job postings. Remote working opportunities are especially susceptible to fraud because everything is typically conducted digitally, via email and Zoom, so you don’t know if the person really is who they claim to be. Sadly, there are a substantial number of scams that target seniors.

As you look for remote opportunities, be cautious of listings that seem too good to be true. Offering a generous amount of money for very little work or requiring payment before work can begin are red flags. So too are job offers that involve an upfront overpayment for you to purchase supplies. Investigating opportunities thoroughly and familiarizing yourself with the latest job-related scams can help prevent you from being victimized. No one wants to have to recover from being scammed.

The Takeaway

Opportunities for seniors and retirees to beef up their savings and retirement investments through remote online work are abundant and varied. It may be necessary to spend some time searching to find gigs that tap your interests and skills and offer a suitable schedule and pay. Some jobs might include bookkeeper, tutor, and travel agent.

And when you do find the perfect remote gig to supplement your retirement income, find the right bank to partner with for storing, spending, and saving your funds.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Are there any work-from-home jobs for seniors that don’t require upfront costs?

Yes, most legitimate work-from-home jobs do not require upfront costs. Many companies will train employees. In fact, the request for upfront costs could signal that you are dealing with a scam vs. a legitimate job opportunity.

How much would a retiree expect to make while working from home?

The pay scale for remote work for retirees can vary tremendously. Many jobs pay around $20 an hour, though some offer less compensation. Opportunities that require specialized qualifications can pay significantly more.

What are some good work-from-home jobs for seniors?

There are an array of work-from-home jobs for seniors, such as being a business consultant, tutor, tax preparer, or customer service representative.

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Photo credit: iStock/FG Trade

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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A term deposit, also known as a certificate of deposit (CD) or time deposit, is a low-risk, interest-bearing savings account. In most cases, term deposit holders place their funds into an account with a bank or financial institution and agree not to withdraw the funds until the maturity date (the end of the term). The funds can earn interest calculated based on the amount deposited and the term.

This guide explains what a term deposit is in more detail, including the pros and cons of term accounts.

What Is a Term Deposit or Time Deposit?

Time deposit, term deposit, or certificate of deposit (CD) are all words that refer to a particular kind of deposit account. It’s an amount of money paid into a savings account with a bank or other financial institution. The principal can earn interest over a period that can vary from a month to years. There is usually a minimum amount for the deposit, and the earned interest and principal are paid when the term ends.

One factor to consider is that the account holder usually agrees not to withdraw the funds before the term is over. However, if they do, the bank will likely charge a penalty. Yes, that’s a downside, but consider the overall picture: Term deposits typically offer higher interest rates than other savings accounts where the account holder can withdraw money at any time without penalties.

Compared to stocks and other alternative investments, term deposits are considered low-risk (they’re typically insured by the FDIC or NCUA) for up to $250,000 per account holder, per account ownership category (say, single, joint, or trust), per insured institution. For these reasons, the returns tend to be conservative vs. higher risk ways to grow your funds.

How Does a Bank Use Term Deposits?

Banks and financial institutions can make money through financing. For example, they likely earn a profit by issuing home, car, and personal loans and charging interest on those financial products. Thus, banks are often in need of capital to fund the loans. Term deposits can provide locked-in capital for lending institutions.

Here’s how many bank accounts work:

•   When a customer places funds in a term deposit, it’s similar to a loan to the bank. The bank will hold the funds for a set time and can use them to invest elsewhere to make a return.

•   Say the bank gives the initial depositor a return of 2.00% for the use of funds in a term deposit. The bank can then use the money on deposit for a loan to a customer, charging a 6.00% interest rate for a net margin of 4.00%. Term deposits can help keep their financial operation running.

Banks want to maximize their net interest margin (net return) by offering lower interest for term deposits and charging high interest rates for loans. However, borrowers may choose a lender with the lowest interest rate, while CD account holders probably seek the highest rate of return. This dynamic keeps banks competitive.

Recommended: Understanding the Different Types of Bank Accounts

How Interest Rates Affect Term Deposits

Term deposits and saving accounts in general tend to be popular when interest rates are high. That’s because account holders can earn a high return just by stashing their money with a financial institution. When market interest rates are low, though, people are more inclined to borrow money and spend on items like homes and cars. They may know they’ll pay less interest on loans, keeping their monthly costs in check. This can stimulate the economy.

When interest rates are low (as checking account interest rates typically are), the demand for term deposits usually decreases because there are alternative investments that pay a higher return. For example, stocks, real estate, or precious metals might seem more appealing, although these are also higher risk.

The interest rate paid on a term deposit usually depends on the amount deposited and the time until maturity. A larger deposit may earn higher interest, and a deposit for a longer period of time (says, a few years vs. a few months) may also reap higher rewards.

Types of Term Deposits

There are two main types of term deposits: fixed deposits and recurring deposits. Here’s a closer look.

Fixed Deposits

Fixed deposits are a one-time deposit into a savings account. The funds cannot be accessed until the maturity date, and interest is paid only on maturity.

Recurring Deposits

With a recurring deposit, the account holder deposits a set amount in regular intervals until the maturity date. For example, the account holder might deposit $100 monthly for five months. Each deposit will earn less interest than the previous installment because the bank holds it for a shorter period.

In addition to these two types, you may see banks promoting different kinds of CDs, whether they vary by term length or by features (such as a penalty-free CD, meaning you aren’t charged if you withdraw funds early).

Opening a Term Deposit

To open a term deposit account, search online for the best interest rates, keeping in mind how much you want to deposit, how often, and for how long. Most banks will ask you to fill in an online application. Make sure you read and agree to the terms of the agreement. For example, check the penalties that apply if you decide to withdraw your funds early as well as the minimum amount required to earn a certain interest rate.

Closing a Term Deposit

A term deposit may close for two reasons — either the account reaches maturity or the account holder decides to end the term early. Each bank or financial institution will have different policies regarding the penalties imposed for breaking a term deposit. Read the fine print or ask a bank representative for full details.

When time deposit accounts mature, some banks automatically renew them (you may hear this worded as “rolled over” into a new account) at the current interest rate. It would be your choice to let that move ahead or indicate to the bank that you prefer to withdraw your money.

If you want to close a term deposit before the maturity date, contact your bank, and find out what you need to do and the penalties. The penalty will depend on the amount saved, the interest rate, and the term. The fee may involve the loss of some or all of interest earned. In very rare cases, your CD could lose value in this way.

Term Deposits and Inflation

Term deposits may not keep up with inflation. That is, if you lock into an account and interest rates rise over time, your money won’t earn more. You will likely still earn the same amount promised when you funded the account. Also, once tax is deducted from the interest income, returns on a fixed deposit may fall below the rate of inflation. So, while term deposits are safe investments, the interest earned can wind up being negligible. You might investigate whether high-yield accounts or stocks, for instance, are a better option.

Term Deposit Pros

What are the advantages of a term deposit versus regular high-yield savings account and other investments? Here are some important benefits:

•   Term deposit accounts are low-risk.

•   CDs or time deposits usually pay a fixed rate of return higher than regular savings accounts.

•   The funds in a CD or deposit account are typically FDIC-insured.

•   Opening several accounts with different maturity dates can allow the account holder to withdraw funds at intervals over time, accessing money without paying any penalties. This system is called laddering.

•   Minimum deposit amounts are often low.

Term Deposit Cons

There are a few important disadvantages of term deposit accounts to note, including:

•   Term deposits can offer lower returns than other, riskier investments.

•   Term deposits and CDs usually have fixed interest rates that do not keep up with inflation.

•   Account holders likely do not have access to funds for the length of the term.

•   Account holders will usually pay a penalty to access funds before the maturity date.

•   A term deposit could be locked in at a low interest rate at a time when interest rates are rising.

Examples of Bank Term Deposits

Here’s an example of how time deposits can shape up. Currently, Bank of America offers a Featured CD account: A 13-month Featured CD with a deposit of more than $1,000 but less than $10,000 pays 4.75% APY.

At Chase, a 9-month CD with a deposit of more than $1,000 but less than $10,000 pays 4.25% APY. If you have $100,000 or more to deposit, the APY rises to 4.75%.

Recommended: How Do You Calculate Interest on a Savings Account?

The Takeaway

Term deposits, time deposits, or CDs are conservative ways to save. Account holders place a minimum amount of money into a bank account for a set term at a fixed interest rate. The principal and interest earned can be withdrawn at maturity or rolled over into another account. If funds are withdrawn early, however, a penalty will likely be assessed.

While these accounts typically have a low interest rate, they may earn more than standard bank accounts. What’s more, their low-risk status can help some people reach their financial goals.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy 3.30% APY on SoFi Checking and Savings with eligible direct deposit.

FAQ

Can you lose money in a term deposit?

Most term deposits or CDs are FDIC-insured, which means your money is safe should the bank fail. However, if you withdraw funds early, you may have to pay a penalty. In a worst-case scenario, this could mean that you receive less money than you originally invested.

Are term deposits and fixed deposits the same?

There is usually no difference between a term deposit and a fixed deposit. They both describe low-risk, interest-bearing savings accounts with maturity dates.

Do you pay tax on term deposits?

With the exception of CDs put in an IRA, any earnings on term deposits or CDs are usually subject to federal and state income taxes. The percentage depends on your overall income and tax bracket. If penalties are paid due to early withdrawal of funds, these can probably be deducted from taxes if the CD or term deposit was purchased through a tax-advantaged individual retirement account (IRA) or 401(k).

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Photo credit: iStock/Olga Trofimova

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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For many Americans, not having enough saved up for retirement is a real fear. Which state you live in can have a major effect on how much you may need. Research from Personal Capital, a digital wealth manager, shows just how much your state really impacts that savings number: The state with the highest retirement savings has an average of $545,754, while the lowest had $315,160.

And that number can vary even more when you consider factors like age. Currently, the average retirement age in the U.S. is 65 for men and 63 for women, but you may find yourself retiring much later or earlier depending on which state you live in and when you start saving for retirement.

The Average Retirement Savings by State

Looking at the retirement savings average 401(k) balance by state can help you get a better idea of how much money you need to retire in your state. To find that information, Personal Capital, a financial services company, looked at the retirement accounts of its users and took the average balances by state as of September 29, 2021. This is the most recent data available. You can find out more about Personal Capital’s methodology here.

Alaska

•   Average Retirement Balance: $503,822

•   Rank (as of 9/29/21): 4 out of 51

Alabama

•   Average Retirement Balance: $395,563

•   Rank (as of 9/29/21): 36 out of 51

Arkansas

•   Average Retirement Balance: $364,395

•   Rank (as of 9/29/21): 46 out of 51

Arizona

•   Average Retirement Balance: $427,418

•   Rank (as of 9/29/21): 31 out of 51

California

•   Average Retirement Balance: $452,135

•   Rank (as of 9/29/21): 17 out of 51

Colorado

•   Average Retirement Balance: $449,719

•   Rank (as of 9/29/21): 19 out of 51

Connecticut

•   Average Retirement Balance: $545,754

•   Rank (as of 9/29/21): 1 out of 51 (BEST)

D.C., Washington

•   Average Retirement Balance: $347,582

•   Rank (as of 9/29/21): 49 out of 51

Delaware

•   Average Retirement Balance: $454,679

•   Rank (as of 9/29/21): 14 out of 51

Florida

•   Average Retirement Balance: $428,997

•   Rank (as of 9/29/21): 28 out of 51

Georgia

•   Average Retirement Balance: $435,254

•   Rank (as of 9/29/21): 26 out of 51

Hawaii

•   Average Retirement Balance: $366,776

•   Rank (as of 9/29/21): 45 out of 51

Iowa

•   Average Retirement Balance: $465,127

•   Rank (as of 9/29/21): 11 out of 51

Idaho

•   Average Retirement Balance: $437,396

•   Rank (as of 9/29/21): 25 out of 51

Illinois

•   Average Retirement Balance: $449,983

•   Rank (as of 9/29/21): 18 out of 51

Indiana

•   Average Retirement Balance: $405,732

•   Rank (as of 9/29/21): 33 out of 51

Kansas

•   Average Retirement Balance: $452,703

•   Rank (as of 9/29/21): 15 out of 51

Kentucky

•   Average Retirement Balance: $441,757

•   Rank (as of 9/29/21): 23 out of 51

Louisiana

•   Average Retirement Balance: $386,908

•   Rank (as of 9/29/21): 39 out of 51

Massachusetts

•   Average Retirement Balance: $478,947

•   Rank (as of 9/29/21): 8 out of 51

Maryland

•   Average Retirement Balance: $485,501

•   Rank (as of 9/29/21): 7 out of 51

Maine

•   Average Retirement Balance: $403,751

•   Rank (as of 9/29/21): 35 out of 51

Michigan

•   Average Retirement Balance: $439,568

•   Rank (as of 9/29/21): 24 out of 51

Minnesota

•   Average Retirement Balance: $470,549

•   Rank (as of 9/29/21): 9 out of 51

Missouri

•   Average Retirement Balance: $410,656

•   Rank (as of 9/29/21): 32 out of 51

Mississippi

•   Average Retirement Balance: $347,884

•   Rank (as of 9/29/21): 48 out of 51

Montana

•   Average Retirement Balance: $390,768

•   Rank (as of 9/29/21): 38 out of 51

North Carolina

•   Average Retirement Balance: $464,104

•   Rank (as of 9/29/21): 12 out of 51

North Dakota

•   Average Retirement Balance: $319,609

•   Rank (as of 9/29/21): 50 out of 51

Nebraska

•   Average Retirement Balance: $404,650

•   Rank (as of 9/29/21): 34 out of 51

New Hampshire

•   Average Retirement Balance: $512,781

•   Rank (as of 9/29/21): 3 out of 51

New Jersey

•   Average Retirement Balance: $514,245

•   Rank (as of 9/29/21): 2 out of 51

New Mexico

•   Average Retirement Balance: $428,041

•   Rank (as of 9/29/21): 29 out of 51

Nevada

•   Average Retirement Balance: $379,728

•   Rank (as of 9/29/21): 42 out of 51

New York

•   Average Retirement Balance: $382,027

•   Rank (as of 9/29/21): 40 out of 51

Ohio

•   Average Retirement Balance: $427,462

•   Rank (as of 9/29/21): 30 out of 51

Oklahoma

•   Average Retirement Balance: $361,366

•   Rank (as of 9/29/21): 47 out of 51

Oregon

•   Average Retirement Balance: $452,558

•   Rank (as of 9/29/21): 16 out of 51

Pennsylvania

•   Average Retirement Balance: $462,075

•   Rank (as of 9/29/21): 13 out of 51

Rhode Island

•   Average Retirement Balance: $392,622

•   Rank (as of 9/29/21): 37 out of 51

South Carolina

•   Average Retirement Balance: $449,486

•   Rank (as of 9/29/21): 21 out of 51

South Dakota

•   Average Retirement Balance: $449,628

•   Rank (as of 9/29/21): 20 out of 51

Tennessee

•   Average Retirement Balance: $376,476

•   Rank (as of 9/29/21): 43 out of 51

Texas

•   Average Retirement Balance: $434,328

•   Rank (as of 9/29/21): 27 out of 51

Utah

•   Average Retirement Balance: $315,160

•   Rank (as of 9/29/21): 51 out of 51 (WORST)

Virginia

•   Average Retirement Balance: $492,965

•   Rank (as of 9/29/21): 6 out of 51

Vermont

•   Average Retirement Balance: $494,569

•   Rank (as of 9/29/21): 5 out of 51

Washington

•   Average Retirement Balance: $469,987

•   Rank (as of 9/29/21): 10 out of 51

Wisconsin

•   Average Retirement Balance: $448,975

•   Rank (as of 9/29/21): 22 out of 51

West Virginia

•   Average Retirement Balance: $370,532

•   Rank (as of 9/29/21): 44 out of 51

Wyoming

•   Average Retirement Balance: $381,133

•   Rank (as of 9/29/21): 41 out of 51

Why Some States Rank Higher

Many factors are involved when determining why some states have higher rankings than others. For the sake of simplifying the data, different tax burdens and cost of living metrics weren’t considered in the analysis, which can make the difference between the highest and lowest ranking state retirement accounts look far wider than they may actually be.

Likewise, not considering the average cost of living by state could explain why states like Hawaii, D.C. and New York aren’t in the top five states for retirement. These states have some of the highest costs of living.

So, when planning your retirement and determining where your retirement savings may stretch the furthest, you may also want to consider tax burdens and cost of living metrics by state instead of just considering the average retirement savings by state.

💡 Quick Tip: Distributing your money across a range of assets — also known as diversification — can be beneficial for long-term investors. When you put your eggs in many baskets, it may be beneficial if a single asset class goes down.

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 anticipated retirement expenses.

As such, you may want to use a retirement calculator or even talk 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.

Recommended: How to Choose a Financial Advisor

By Generation Breakdown

Unsurprisingly, the amount Americans have saved for retirement varies a lot by generation. Personal Capital’s report reveals that generally, younger generations have less saved up for retirement than older ones.

Gen Z

•   Total Surveyed: 121,489

•   Average Retirement Balance: $38,633

•   Median Retirement Balance: $12,016

Millennials

•   Total Surveyed: 742,108

•   Average Retirement Balance: $178,741

•   Median Retirement Balance: $75,745

Gen X

•   Total Surveyed: 375,718

•   Average Retirement Balance: $605,526

•   Median Retirement Balance: $303,663

Baby Boomers

•   Total Surveyed: 191,648

•   Average Retirement Balance: $1,076,208

•   Median Retirement Balance: $587,943

Recommended: Average Retirement Savings by Age

The Takeaway

The average 401(k) balance by state varies quite a bit, and myriad factors can affect how much you’ll personally need to retire comfortably. Your state’s costs of living, the age you start saving for retirement, and your state’s tax burdens 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

Have more questions about retirement? Check out these common concerns about retirement and retirement savings.

How much do Americans have saved up for retirement?

How much the average American has saved for retirement varies greatly by state and age. Connecticut has the highest average retirement savings, $545,754, and Utah has the lowest, $315,160. In general, younger generations have far less saved up than older generations, with Gen Zers averaging $38,633 and Boomers averaging $1,076,208.

What’s the average retirement age in the US?

The average retirement age in the U.S. is 65 for men and 63 for women. Alaska and West Virginia have the lowest average retirement age, 61, and D.C. has the highest, 67.

What can I do now to help build my retirement savings?

To help build your retirement savings you could take such actions as participating in your workplace 401(k) and taking advantage of the employer 401(k) match if there is one. You might also want to consider opening an IRA or investing in the market. Weigh your options carefully and consider the possible risk involved to help determine what savings and investment strategy is best for you.

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Photo credit: iStock/izusek

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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