The States Where Americans Have the Most Retirement Savings and Where They Have the Least

For millions of Americans, retirement is more than a distant milestone. It represents financial security after decades of work. Yet where you live could have a significant impact on how much you manage to save before leaving the workforce.

New figures based on US Census Bureau data, compiled by Yahoo Finance, reveal striking differences in retirement savings across the country. While households in some states have built retirement funds well above $100,000, others are approaching retirement with balances that are only a fraction of that amount.

The figures are based on median retirement savings, rather than averages. This provides a clearer picture because half of households have saved more than the median and half have saved less. Average balances can be heavily influenced by a relatively small number of households with exceptionally large retirement accounts.

Here is a closer look at the states where retirement savings are strongest and where they remain the weakest.

The Five US States With the Highest Retirement Savings

1. Massachusetts

Median retirement savings: $150,000

Massachusetts ranks first, with the highest median retirement savings balance in the country at $150,000. The state has a cost of living that is around 5.8% above the national average, while median home prices stand at approximately $667,628. Its top marginal state income tax rate is 9%.

Although living costs are higher than average, the state also benefits from relatively strong household incomes, helping many residents build larger retirement savings.

2. Hawaii

Median retirement savings: $149,000

Hawaii follows closely behind with median retirement savings of $149,000. It also has one of the highest costs of living in the US, with median home prices exceeding $722,000. The state's top marginal income tax rate is 11%. Higher savings may reflect the additional financial preparation required to retire comfortably in one of the country's most expensive states.

3. Washington

Median retirement savings: $143,400

Washington residents report median retirement savings of $143,400. Living costs are around 7% above the national average, while median home prices are close to $612,823. Washington does not levy a traditional state income tax on wages, although it taxes certain capital gains. The state's relatively high wages, particularly in technology and professional industries, may support stronger retirement contributions.

4. New Jersey

Median retirement savings: $134,000

New Jersey records median retirement savings of $134,000. Residents face living costs that are nearly 10% above the national average, alongside median home prices of around $563,000. The state's top marginal income tax rate reaches 10.75%. Despite those higher costs, retirement balances remain among the strongest in the country.

5. Maryland

Median retirement savings: $120,000

Maryland completes the top five with median retirement savings of $120,000. The state's cost of living is about 5% above the national average, while median home prices are approximately $448,407. Its top marginal income tax rate is 5.75%. The state's strong employment market has helped many households accumulate comparatively healthy retirement balances.

The Five US States With the Lowest Retirement Savings

1. Mississippi

Median retirement savings: $35,000

Mississippi records the country's lowest median retirement savings balance at $35,000. The state also has one of the lowest costs of living in the nation, around 13% below the national average, with median home prices of roughly $281,002. Its top marginal income tax rate is 4.4%.

2. Oklahoma

Median retirement savings: $39,450

Oklahoma ranks second from the bottom with median retirement savings of $39,450. Living costs are about 12.2% below the national average, while median home prices average $264,062. The state's top marginal income tax rate is 4.75%.

3. Alabama

Median retirement savings: $46,000

Alabama households report median retirement savings of $46,000. Living costs are approximately 11.2% below the national average, while median home prices are around $307,408. The state's top marginal income tax rate is 5%.

4. Louisiana

Median retirement savings: $50,000

Louisiana has median retirement savings of $50,000. The state benefits from relatively affordable housing, with median home prices of about $259,977, while living costs are 11.8% below the national average. The top marginal income tax rate is 3%.

5. New Mexico

Median retirement savings: $50,000

New Mexico also reports median retirement savings of $50,000. Living costs are around 7.8% below the national average, while median home prices stand at approximately $357,729. The state's top marginal income tax rate is 5.9%.

What Americans Can Learn From the Data

The latest figures show that retirement preparedness differs significantly across the US, with median savings ranging from $35,000 in Mississippi to $150,000 in Massachusetts. While wages, living costs, housing prices, and state tax policies all influence how much households are able to save, the data underscores the importance of starting retirement planning early. Regardless of where you live, building retirement savings consistently over time can help strengthen long-term financial security.