https://smartasset.com/data-studies/ret ... vings-2025
Retirement savings can serve as a key indicator of financial stability, reflecting not only a household’s ability to set aside money but also shaping retirement timelines and broader workforce and economic dynamics. Across the United States, the average retirement savings per household is estimated to be $114,435 – but this figure varies significantly by state, ranging from less than half to double that amount. These disparities can significantly impact when and how comfortably Americans retire. Even after adjusting for local household income differences – often tied to the cost of living – households in some states have less than a year’s income saved on average, while others have more than twice the local median income set aside for retirement.
With this in mind, SmartAsset ranked U.S. states based on the latest retirement savings data from the Census Bureau, adjusted to 2025 dollars based on S&P 500 growth. Median household income is also compared to retirement savings, providing a clearer picture of retirement preparedness across the country.
Key Findings
- Retirement savings in Kansas average 2.78 times the state’s median income, the highest in the country. The estimated average retirement savings almost triples the median household income of $70,333. The median balance across household retirement accounts is approximately $195,302, with 66.5% of households having retirement accounts.
- Median retirement savings in Hawaii and Massachusetts top $200,000. Hawaii has the highest retirement savings balance nationwide at $228,870, followed by Massachusetts at $218,189. Even compared to their respective median household incomes – $95,322 and $99,858 – these savings levels positions Hawaii and Massachusetts as the second- and third-ranked states for retirement savings rates nationwide.
- Less than half of households have retirement savings in six southern states. Mississippi has the fewest households saving for retirement with just 40.8% of households participating. Following closely are West Virginia (42.2%), Alabama (43.0%), Arkansas (46.7%), Louisiana (47.6%) and Georgia (48.7%). For most of these states, the median household retirement savings also comes in at under $70,000.
- Missouri has the slowest rate of retirement savings. Compared to the median household income of $68,545, Missouri residents have less than one year of money stashed away for retirement with an average nest egg of $61,032. Meanwhile, Arkansas households have the smallest absolute nest egg at $57,828.