Retirement savings by state vary almost fourfold: the median household balance in tax-advantaged retirement accounts ranges from $150,000 in Massachusetts to $35,000 in Mississippi, according to SmartAsset's March 11, 2026 ranking of U.S. Census Bureau household data for 2023 [1]. Nationally, the Federal Reserve's most recent Survey of Consumer Finances found that 54.3% of families held a retirement account in 2022, with a median balance of $86,900 and a mean of $334,000 among those families [2].
This updated version replaces the anecdotal state examples of the original with a complete 40-state table, the latest national benchmarks and the 2026 contribution limits from the IRS.
Where the numbers come from
Two sources measure different things, and readers should keep them apart:
- National figures come from the Federal Reserve's Survey of Consumer Finances (SCF), a detailed household wealth survey run every three years. The 2022 survey, published in October 2023, is the latest available as of September 2026. Its $86,900 median and $334,000 mean are conditional values, meaning they cover only the 54.3% of families that hold a retirement account, in 2022 dollars [2].
- State figures come from SmartAsset's Retirement Savings by State 2026 study, which uses Census Bureau household retirement data for 2023 (published July 2025) and median household income from the 2024 American Community Survey [1]. Full data were available for 40 states; Alaska, Delaware, Maine, Nebraska, New Hampshire, North Dakota, Rhode Island, South Dakota, Vermont and Wyoming are not ranked [1].
The two sets are not directly comparable, because they differ in survey, year and definition. The state data are best used to compare states with each other, and the SCF figures to judge the national picture.
Median retirement savings by state: the 2026 ranking
The table lists all 40 ranked states. The savings-to-income column is DataPorium's calculation (median savings divided by median household income) and shows how many years of a typical income the median balance represents [1].
| Rank | State | Median retirement savings | Median household income | Savings to income | Households with a retirement account |
|---|---|---|---|---|---|
| 1 | Massachusetts | $150,000 | $104,828 | 1.4x | 74.8% |
| 2 | Hawaii | $149,000 | $100,745 | 1.5x | 65.0% |
| 3 | Washington | $143,400 | $99,389 | 1.4x | 70.3% |
| 4 | New Jersey | $134,000 | $104,294 | 1.3x | 66.7% |
| 5 | Maryland | $120,000 | $102,905 | 1.2x | 73.5% |
| 6 | Connecticut | $118,400 | $96,049 | 1.2x | 69.9% |
| 7 | Minnesota | $111,000 | $87,117 | 1.3x | 71.4% |
| 8 | Illinois | $111,000 | $83,211 | 1.3x | 66.7% |
| 9 | Pennsylvania | $101,800 | $77,545 | 1.3x | 62.6% |
| 10 | Colorado | $100,000 | $97,113 | 1.0x | 68.5% |
| 11 | California | $100,000 | $100,149 | 1.0x | 61.8% |
| 12 | Ohio | $100,000 | $72,212 | 1.4x | 61.1% |
| 13 | Oregon | $92,400 | $85,220 | 1.1x | 70.3% |
| 14 | Idaho | $89,000 | $81,166 | 1.1x | 70.0% |
| 15 | Virginia | $85,200 | $92,090 | 0.9x | 70.6% |
| 16 | Michigan | $85,000 | $72,389 | 1.2x | 63.2% |
| 17 | New York | $80,000 | $85,820 | 0.9x | 60.6% |
| 18 | Florida | $78,000 | $77,735 | 1.0x | 55.4% |
| 19 | Montana | $76,000 | $75,340 | 1.0x | 68.4% |
| 20 | Tennessee | $74,500 | $71,997 | 1.0x | 60.0% |
| 21 | Georgia | $72,000 | $79,991 | 0.9x | 50.4% |
| 22 | Indiana | $71,700 | $71,959 | 1.0x | 63.8% |
| 23 | Iowa | $70,000 | $75,501 | 0.9x | 72.4% |
| 24 | Nevada | $70,000 | $81,134 | 0.9x | 55.1% |
| 25 | Arizona | $69,500 | $81,486 | 0.9x | 64.9% |
| 26 | Utah | $62,800 | $96,658 | 0.6x | 73.7% |
| 27 | Wisconsin | $58,000 | $77,488 | 0.7x | 72.9% |
| 28 | Missouri | $57,000 | $71,589 | 0.8x | 57.0% |
| 29 | North Carolina | $56,000 | $73,958 | 0.8x | 63.5% |
| 30 | Kansas | $56,000 | $75,514 | 0.7x | 71.6% |
| 31 | Texas | $55,000 | $79,721 | 0.7x | 55.2% |
| 32 | Arkansas | $54,490 | $62,106 | 0.9x | 42.9% |
| 33 | West Virginia | $54,400 | $60,798 | 0.9x | 47.4% |
| 34 | South Carolina | $50,300 | $72,350 | 0.7x | 56.6% |
| 35 | New Mexico | $50,000 | $67,816 | 0.7x | 53.6% |
| 36 | Kentucky | $50,000 | $64,526 | 0.8x | 51.7% |
| 37 | Louisiana | $50,000 | $60,986 | 0.8x | 44.1% |
| 38 | Alabama | $46,000 | $66,659 | 0.7x | 43.1% |
| 39 | Oklahoma | $39,450 | $66,148 | 0.6x | 47.9% |
| 40 | Mississippi | $35,000 | $59,127 | 0.6x | 41.8% |
What separates the top states from the bottom
Account ownership is the clearest dividing line. In Massachusetts, 74.8% of households hold a retirement account, compared with 41.8% in Mississippi and 44.1% in Louisiana [1]. Maryland has the highest 401(k) and Thrift Savings Plan use in the study at 65.0% of households [1]. Income matters as well: the five highest-saving states all have median household incomes near or above $99,000, while the five lowest sit between $59,127 and $66,659 [1].
Income does not explain everything. Utah has a median household income of $96,658 and the second-highest account ownership rate at 73.7%, yet a median balance of only $62,800 [1]. Ohio reaches $100,000 on a $72,212 median income, a savings-to-income ratio of 1.4, the fourth highest in the table [1].
How does your state compare with the national median?
The Census Bureau put 2025 U.S. median household income at $87,460, the highest on record since 1967 [4]. Against that benchmark, the SCF median retirement balance of $86,900 is about one year of income, and 23 of the 40 ranked states report median balances below $80,000 [1][2]. For many households, that leaves Social Security as the main source of retirement income.
Inflation raises the bar further. Consumer prices rose 3.3% in the year to August 2026, based on the CPI series in DataPorium's economic data [5]. Readers can follow CPI and interest rates on DataPorium's economic metrics page [5].
2026 retirement contribution limits from the IRS
For households working to close the gap, tax-advantaged accounts remain the main tool. The IRS announced these limits for 2026 on November 13, 2025 [3]:
| Account | 2026 limit | 2025 limit |
|---|---|---|
| 401(k), 403(b), 457 and TSP employee deferral | $24,500 | $23,500 |
| Catch-up, age 50 and older | $8,000 | $7,500 |
| Catch-up, ages 60 to 63 | $11,250 | $11,250 |
| IRA contribution | $7,500 | $7,000 |
| IRA catch-up, age 50 and older | $1,100 | $1,000 |
| SIMPLE plan deferral | $17,000 | $16,500 |
A worker aged 50 or older can defer up to $32,500 into a 401(k) in 2026 [3]. From a market-oriented view, higher limits and simple, low-cost plans reward personal saving and private investment. The fair counterpoint is that limits help only those with access to a plan and income to spare, which is why account ownership, not just contribution limits, drives the state gaps above [1].
The gap in retirement savings between states tracks account ownership and income, and the median balance nationally is only about one year of household income.
Frequently asked questions
Which state has the highest retirement savings?
Massachusetts ranks first with median retirement savings of $150,000, followed by Hawaii at $149,000 and Washington at $143,400, according to SmartAsset's 2026 study of Census data [1].
What is the average retirement savings in the U.S.?
The Federal Reserve's 2022 Survey of Consumer Finances found a mean retirement account balance of $334,000 and a median of $86,900 among the 54.3% of families that hold such accounts [2]. The median is the better guide to a typical household because a small number of very large accounts pull the mean up.
How much can I put in a 401(k) in 2026?
The 2026 employee deferral limit is $24,500, plus an $8,000 catch-up for workers 50 and older and an $11,250 catch-up for ages 60 to 63 [3].
Which state has the lowest retirement savings?
Mississippi ranks last among the 40 states with data, with median retirement savings of $35,000 and 41.8% of households holding a retirement account [1].
Sources & References
- [1] SmartAsset: Retirement Savings by State, 2026 Study (March 11, 2026)
- [2] Federal Reserve: Changes in U.S. Family Finances from 2019 to 2022, Survey of Consumer Finances
- [3] IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (IR-2025-111)
- [4] U.S. Census Bureau: Income in the United States: 2025 (P60-289)
- [5] DataPorium Economic Metrics: CPI and interest rates
