Planning for retirement is one of the most critical financial goals for Americans, but not all states achieve the same savings levels. According to recent data, the average retirement savings in the United States is $498,000, though certain states stand out with significantly higher figures. Using anonymized data from over two million Empower Personal Dashboard™ users, researchers have identified the states with the highest average savings. This includes accounts like 401(k)s, IRAs, and pension plans. Below are the key findings.
According VisualCapitaly. many Americans feel like time is running out when it comes to saving for retirement. Data shows that while 44% started saving early enough, another 43% wish they had started sooner. Still, the overall savings picture offers a glimmer of hope. The national average 401(k) balance is $293,695, while for people in their 50s, the average jumps to $583,231.
Here’s the list of states leading the way in average retirement savings per person in 2024:
- Connecticut (CT): $634,456
- New Jersey (NJ): $605,379
- Virginia (VA): $589,965
- Maryland (MD): $582,087
- New Hampshire (NH): $570,511
- Alaska (AK): $569,957
- Massachusetts (MA): $563,353
- Vermont (VT): $558,522
- Washington (WA): $557,139
- Minnesota (MN): $547,397
Regional trends show that Northeast states dominate the top 10, while other high-ranking states are spread across the west (Washington), south (Virginia and Maryland), and midwest (Minnesota). These states often have a higher cost of living, but they also boast greater after-tax household incomes. States like Alaska and New Hampshire benefit from low tax burdens, allowing residents to save more effectively.
A survey by Empower found that 51% of Americans consider retirement their top savings priority. Key factors shaping their retirement dreams include preferred locations like the beach (32%) or the mountains and countryside (22%). Two-thirds of Americans aim to move for retirement, with 16% opting for more affordable states. The most popular retirement destinations are Florida, New York, and California.
Wherever you plan to retire, the first step is building a strong financial plan. Estimate your future monthly expenses and ensure your savings can cover them. By setting realistic goals and maintaining disciplined saving habits, you can achieve the retirement you’ve always envisioned.
