What Is the Average Retirement Savings by State?


Senior man with piggybank
Ranta Photographs / Shutterstock.com

Editor’s Notice: This story initially appeared on Personal Capital.

Everybody desires to know the magic number you need to be saving for retirement. However does the place you reside additionally have an effect in your precise retirement financial savings?

Nearly six years in the past, we got down to reply this query by trying on the common retirement financial savings of our 2.8 million dashboard customers (anonymized, after all). This allowed us to evaluate how a lot individuals had of their retirement nest eggs, damaged down by age, technology, and state.

This 12 months, within the midst of a world pandemic marked additionally by market volatility, unemployment spikes, and monetary hardship, we took a take a look at how people’s retirement savings have changed.

Now multiple 12 months into the coronavirus pandemic, we wished to check out how these numbers have adjusted. We’ve ranked the states from the very best retirement financial savings to the bottom. Let’s dive in!

1. Connecticut

The skyline of Hartford Connecticut, where median rents are relatively low
Sean Pavone / Shutterstock.com

Common retirement steadiness: $523,568

2. New Hampshire

Hudson New Hampshire
Anthony Dezenzio / Shutterstock.com

Common retirement steadiness: $494,562

3. New Jersey

Hoboken, New Jersey
Mags951 / Shutterstock.com

Common retirement steadiness: $489,664

4. Alaska

Anchorage, Alaska
Rex Lisman / Shutterstock.com

Common retirement steadiness: $489,070

5. Virginia

Richmond, Virginia
ESB Skilled / Shutterstock.com

Common retirement steadiness: $468,579

6. Vermont

Lake Memphremagog in Newport, Vermont
NEKVT / Shutterstock.com

Common retirement steadiness: $467,757

7. Maryland

Annapolis, Maryland
Sean Pavone / Shutterstock.com

Common retirement steadiness: $458,107

8. Massachusetts

Lowell, Massachusetts
Andriy Danylov / Shutterstock.com

Common retirement steadiness: $457,681

9. Washington

Lake Union in Seattle, Washington
oksana perkins / Shutterstock.com

Common retirement steadiness: $447,869

10. Minnesota

St Paul Minnesota
Henryk Sadura / Shutterstock.com

Common retirement steadiness: $447,836

11. Iowa

Dubuque, Iowa
Joseph Sohm / Shutterstock.com

Common retirement steadiness: $443,587

12. North Carolina

Concord North Carolina
Scott Alan Ritchie / Shutterstock.com

Common retirement steadiness: $440,227

13. Pennsylvania

Philadelphia, Pennsylvania at dusk
f11photo / Shutterstock.com

Common retirement steadiness: $439,226

14. Oregon

Bend, Oregon
melissamn / Shutterstock.com

Common retirement steadiness: $434,085

15. Delaware

New Jersey from Delaware
Felix Mizioznikov / Shutterstock.com

Common retirement steadiness: $433,660

16. Kansas

Derby, Kansas
BonBonBurley / Shutterstock.com

Common retirement steadiness: $430,460

17. Illinois

Chicago, Illinois
f11photo / Shutterstock.com

Common retirement steadiness: $429,265

18. Wisconsin

Madison, Wisconsin
Sean Pavone / Shutterstock.com

Common retirement steadiness: $428,872

19. South Dakota

Pierre, South Dakota from above
Jacob Boomsma / Shutterstock.com

Common retirement steadiness: $428,530

20. California

Santa Ana, California
Matt Gush / Shutterstock.com

Common retirement steadiness: $428,437

21. Colorado

Westminster, Colorado
Package Leong / Shutterstock.com

Common retirement steadiness: $426,970

22. South Carolina

South Carolina beach
Sean Pavone / Shutterstock.com

Common retirement steadiness: $423,780

23. Michigan

Holland, Michigan
Craig Sterken / Shutterstock.com

Common retirement steadiness: $419,201

24. Texas

Corpus Christi Texas
Sean Pavone / Shutterstock.com

Common retirement steadiness: $415,277

25. Georgia

Kennesaw, Georgia
Demetrius C / Shutterstock.com

Common retirement steadiness: $414,723

26. New Mexico

Las Cruces, New Mexico
VentureD / Shutterstock.com

Common retirement steadiness: $412,989

27. Idaho

Caldwell Idaho
CSNafzger / Shutterstock.com

Common retirement steadiness: $410,434

28. Ohio

Columbus Ohio
f11photo / Shutterstock.com

Common retirement steadiness: $408,379

29. Florida

Kissimmee, Florida
Italo Paulino / Shutterstock.com

Common retirement steadiness: $407,393

30. Arizona

Phoenix, Arizona
welcomia / Shutterstock.com

Common retirement steadiness: $407,029

31. Kentucky

Louisville Kentucky
Sean Pavone / Shutterstock.com

Common retirement steadiness: $405,671

32. Missouri

St. Charles Missouri
Rob Neville Photographs / Shutterstock.com

Common retirement steadiness: $390,863

33. Indiana

Carmel, Indiana
Golden Ratio Photographs / Shutterstock.com

Common retirement steadiness: $385,047

34. Maine

Portland, Maine
Jo Ann Snover / Shutterstock.com

Common retirement steadiness: $384,571

35. Rhode Island

Rhode Island
By White Pine Photographs / Shutterstock.com

Common retirement steadiness: $383,512

36. Alabama

Huntsville Alabama cityscape skyline
By Sean Pavone / Shutterstock.com

Common retirement steadiness: $378,948

37. Nebraska

Nebraska Wind Turbine
Sovereign Photographs / Shutterstock.com

Common retirement steadiness: $378,412

38. Louisiana

Louisiana
jaimie tuchman / Shutterstock.com

Common retirement steadiness: $371,465

39. Montana

Bowman Lake
By Galyna Andrushko / Shutterstock.com

Common retirement steadiness: $370,917

40. Wyoming

People kayaking on a lake with a mountain in the background.
B Brown / Shutterstock.com

Common retirement steadiness: $364,173

41. New York

Syracuse New York
Paul Brady Images / Shutterstock.com

Common retirement steadiness: $362,468

42. Tennessee

Chattanooga, Tennessee
Kevin Ruck / Shutterstock.com

Common retirement steadiness: $358,963

43. Nevada

Mesquite Nevada
Steve Lagreca / Shutterstock.com

Common retirement steadiness: $356,973

44. West Virginia

West Virginia
Sean Pavone / Shutterstock.com

Common retirement steadiness: $354,018

45. Hawaii

Kailua Beach Park in Hawaii
Dmitrii Sakharov / Shutterstock.com

Common retirement steadiness: $345,401

46. Arkansas

Hot Springs, Arkansas
Niwat panket / Shutterstock.com

Common retirement steadiness: $345,267

47. Mississippi

Gulf Coast at Biloxi, Mississippi.
Joseph Sohm / Shutterstock.com

Common retirement steadiness: $340,894

48. Oklahoma

Oklahoma City, Oklahoma traffic highways
Gerson Repreza / Shutterstock.com

Common retirement steadiness: $340,389

49. Washington, D.C.

Washington D.C.
f11photo / Shutterstock.com

Common retirement steadiness: $325,671

50. North Dakota

A hiker in Theodore Roosevelt National Park in North Dakota
ZakZeinert / Shutterstock.com

Common retirement steadiness: $310,766

51. Utah

Utah
Sean Xu / Shutterstock.com

Common retirement steadiness: $300,392

Why Some States Rank Increased

Man analyzing data on a laptop
fizkes / Shutterstock.com

There are a number of elements at play when taking a look at retirement financial savings averages.

It ought to be famous that solely trying on the state-by-state breakdown could also be unfair while you consider completely different tax burdens and price of residing metrics that adjust between states.

In our evaluation, we didn’t look particularly into these different elements as a number one trigger. In our assumption, it seemingly is sensible why states equivalent to Alaska are included within the high 5 — particularly since Alaska is a state identified for favorable tax legal guidelines in contrast with states equivalent to California.

Excessive value of residing is also an element for sure states not making the highest 5. That’s seemingly the rationale for Hawaii, District of Columbia, and New York, to call just a few, as cities in these states high the very best value of residing, in response to The U.S. Bureau of Labor Statistics.

In line with this 2021 rating, here are the top five states with the very best value of residing: Hawaii, California, New York, Oregon, and Massachusetts.

How A lot Do You Have to Retire Comfortably in Every State?

Happy retired couple
Spotmatik Ltd / Shutterstock.com

Sadly, there’s nobody reply to how a lot you’ll need to retire comfortably, it doesn’t matter what state you reside in. However there are just a few elements to contemplate, and there are just a few frequent strategies that can assist you decide what you may have to help your required retirement life-style.

One factor to contemplate when figuring out how a lot you’ll have to retire is your state’s tax burden. There are a number of sorts of taxation that adjust by state and that would actually affect your potential to maintain your required life-style.

A few of these embody property tax, revenue tax, and inheritance tax. For instance, if an anticipated inheritance is a part of your retirement plan, then you need to know in case your state has property or inheritance taxes.

There are numerous strategies of calculating how a lot you may have to spend or withdraw out of your portfolio. A standard one is the “4% rule.”

In the event you comply with this rule, you withdraw 4% of your portfolio within the first 12 months of retirement and then you definitely yearly withdraw that very same greenback quantity, adjusted for inflation, for the subsequent 30 years. The thought is that should you comply with this rule, you decrease your probabilities of operating out of cash in retirement.

Whereas this rule is an effective place to begin, it has been hotly debated because it was established. Some argue that it’s too conservative. Others argue that at present’s low-interest surroundings and longer life expectations make it too dangerous.

In the meantime, your monetary future hangs within the steadiness. If the rule is just too conservative, then you definitely’ve unnecessarily constrained your retirement life-style. If the rule is just too dangerous, you can run out of cash simply while you want it most.

So a great way to get a personalised plan is to make use of a instrument like Private Capital’s free Retirement Planner.

The Retirement Planner will assist you to enter particular data that’s private to you (like deliberate main spending occasions, while you need to take Social Safety, what age you plan to retire, and so on.) and can run hundreds of simulations to present you a p.c likelihood of retirement success primarily based in your present portfolio.

Get entry to the Retirement Planner by signing up for Personal Capital’s free financial tools.

Disclosure: The data you learn right here is all the time goal. Nonetheless, we typically obtain compensation while you click on hyperlinks inside our tales.