What is the average retirement savings by state?
What is the average retirement savings by state?
What is the average retirement savings by state?
10.07.2024
Americans have saved $498,000 on average for retirement. Which states have residents with the highest average retirement savings?
Highest average retirement savings by state
Many Americans are racing against the clock when it comes to financial goals: Half think they’re running out of time to save for retirement, even though 44% say they started putting money away early enough. Another 43% wish they could go back in time to start saving sooner.
People may be further along than they think. According to Empower Personal Dashboard™ data in September 2024, the average 401(k) balance—one key measure of overall personal savings and investments—clocks in at $293,695. For people in their 50s approaching retirement age, the number jumps to $583,231.
In the graphic, we explore the states with the highest average retirement savings per person as of September 2024. These savings are across all types of retirement accounts, such as 401(k)s, IRAs, and pension plans.
1Empower online survey of 1,011 Americans conducted from April 10–16, 2024. Anonymized user data from the Empower Personal Dashboard™ as of 9/1/2024.
Northeast states make up half of the top ten states by average retirement savings. The remainder are spread across the Pacific (Alaska), South (Virginia and Maryland), West (Washington), and Midwest (Minnesota). Many of these states have a high cost of living, but also have higher average after-tax household incomes.
Taxes may play a role in how much people are able to save. For instance, Alaska (#6) does not have any state income tax or sales tax, and New Hampshire (#5) has a low overall tax burden.
The ideal retirement
In an Empower study, 51% of people say retirement is their top savings goal.
When they reach retirement, what will it look like? More than 40% of Americans spend time “dreamscrolling” their retirement by picturing their ideal age, location, and monthly spending. Around two-thirds of Americans are interested in relocating during retirement, with 16% saying they want to move to a less expensive state.
On top of cost of living, the other main factors people consider are the climate and being close to loved ones. Not surprisingly, people say they would most like to retire near the beach (32%) and in the mountains or countryside (22%). The most popular states for retirement are Florida, New York, and California.
Making a plan
No matter where you plan to retire, the first step is developing a plan to save enough for your ideal retirement.
Methodology: Average retirement savings are based on anonymous, aggregate data of linked accounts and self-declared values are excluded. User count varies by state but was at least 2,000 people in all cases. Excludes spouse accounts, any account value greater than $100M or less than -$100M (negative $100M), and users without relevant accounts. Retirement accounts include: 401(a), 401(a) former employer, 401(k), 401(k) former employer, 403(b), 403(b) former employer, 457, 457 former employer, IRA, Rollover IRA, non-taxable IRA, Roth IRA, traditional IRA, Roth 401(k), Roth 401(k) former employer, Roth SEP IRA, SEP IRA, SEP former employer, simple IRA, general retirement account, non-taxable, inherited Roth IRA, inherited traditional IRA, pension plan, pension plan non-taxable, rollover Roth, Roth conversion.
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The CurrencyTM, a publication from Empower, covers the latest financial news and views shaping how we live, work, and play. We keep you current on ways to plan, save, and invest for life.
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