Tax-advantaged retirement accounts can give savers a leg up in building their nest egg. While many American workers qualify for Social Security benefits in retirement, these benefits are rarely enough to cover expenses — especially since retirement often brings added costs for health care and aging. On average, Americans have roughly one year’s worth of their current annual income saved in tax-advantaged accounts. For most households, that figure hovers around $80,000. However, the face value may not reflect true purchasing power, because different accounts and investments are taxed differently at the time of distribution.
With this in mind, SmartAsset ranked the 40 U.S. states with available data by average household retirement savings, including comparisons to household income and a breakdown of retirement account preferences.
Key Findings
Massachusetts residents have the most retirement savings. Households have an average of $150,000 in retirement savings in the Bay State. Massachusetts also holds the record for retirement account prevalence, with 74.8% of households taking advantage of tax-advantaged retirement accounts.
Mississippi residents are saving the least for retirement. The average household has just $35,000 in retirement savings in Mississippi, or 59.2% of the median $59,127 annual income. Only 41.8% of households are using retirement-specific accounts, the lowest adoption rate studywide.
65% of households in Maryland use 401(k)s. Maryland has the highest preference for 401(k)s as retirement vehicles studywide. The average retirement savings across the state is $120,000, ranking fifth overall. Massachusetts (60.9%), Utah (60.3%), Washington (60.2%), and Minnesota (59%) also have among the highest rates of 401(k) use.
IRAs are most popular in these states. Montana households have the highest preference for IRAs — including Roth and Keogh accounts — with a 46.4% use rate and a median retirement savings of $76,000. Households in Minnesota and Oregon also tend to use IRA accounts, with 45.2% and 45.1% of households funding these accounts, respectively.
SmartAsset
Retirement Savings by State
States are ranked based on the median household savings in tax-advantaged retirement accounts.
Massachusetts
Median retirement savings: $150,000
Median household income: $104,828
Retirement account prevalence: 74.8%
IRA or Keogh Account prevalence: 40.6%
401(k) & Thrift Savings Plan prevalence: 60.9%
Hawai‘i
Median retirement savings: $149,000
Median household income: $100,745
Retirement account prevalence: 65.0%
IRA or Keogh Account prevalence: 43.6%
401(k) & Thrift Savings Plan prevalence: 56.2%
Washington
Median retirement savings: $143,400
Median household income: $99,389
Retirement account prevalence: 70.3%
IRA or Keogh Account prevalence: 43.6%
401(k) & Thrift Savings Plan prevalence: 60.2%
New Jersey
Median retirement savings: $134,000
Median household income: $104,294
Retirement account prevalence: 66.7%
IRA or Keogh Account prevalence: 33.5%
401(k) & Thrift Savings Plan prevalence: 56.1%
Maryland
Median retirement savings: $120,000
Median household income: $102,905
Retirement account prevalence: 73.5%
IRA or Keogh Account prevalence: 39.3%
401(k) & Thrift Savings Plan prevalence: 65%
Connecticut
Median retirement savings: $118,400
Median household income: $96,049
Retirement account prevalence: 69.9%
IRA or Keogh Account prevalence: 38.1%
401(k) & Thrift Savings Plan prevalence: 58.8%
Minnesota
Median retirement savings: $111,000
Median household income: $87,117
Retirement account prevalence: 71.4%
IRA or Keogh Account prevalence: 45.2%
401(k) & Thrift Savings Plan prevalence: 59%
Illinois
Median retirement savings: $111,000
Median household income: $83,211
Retirement account prevalence: 66.7%
IRA or Keogh Account prevalence: 36.9%
401(k) & Thrift Savings Plan prevalence: 55.7%
Pennsylvania
Median retirement savings: $101,800
Median household income: $77,545
Retirement account prevalence: 62.6%
IRA or Keogh Account prevalence: 33.2%
401(k) & Thrift Savings Plan prevalence: 51.3%
Colorado
Median retirement savings: $100,000
Median household income: $97,113
Retirement account prevalence: 68.5%
IRA or Keogh Account prevalence: 38.3%
401(k) & Thrift Savings Plan prevalence: 55.4%
California
Median retirement savings: $100,000
Median household income: $100,149
Retirement account prevalence: 61.8%
IRA or Keogh Account prevalence: 34.2%
401(k) & Thrift Savings Plan prevalence: 51.7%
Ohio
Median retirement savings: $100,000
Median household income: $72,212
Retirement account prevalence: 61.1%
IRA or Keogh Account prevalence: 35.2%
401(k) & Thrift Savings Plan prevalence: 46.3%
Oregon
Median retirement savings: $92,400
Median household income: $85,220
Retirement account prevalence: 70.3%
IRA or Keogh Account prevalence: 45.1%
401(k) & Thrift Savings Plan prevalence: 56.7%
Idaho
Median retirement savings: $89,000
Median household income: $81,166
Retirement account prevalence: 70%
IRA or Keogh Account prevalence: 37%
401(k) & Thrift Savings Plan prevalence: 58.6%
Virginia
Median retirement savings: $85,200
Median household income: $92,090
Retirement account prevalence: 70.6%
IRA or Keogh Account prevalence: 42.0%
401(k) & Thrift Savings Plan prevalence: 57.9%
Michigan
Median retirement savings: $85,000
Median household income: $72,389
Retirement account prevalence: 63.2%
IRA or Keogh Account prevalence: 33.3%
401(k) & Thrift Savings Plan prevalence: 53.3%
New York
Median retirement savings: $80,000
Median household income: $85,820
Retirement account prevalence: 60.6%
IRA or Keogh Account prevalence: 32.2%
401(k) & Thrift Savings Plan prevalence: 49.1%
Florida
Median retirement savings: $78,000
Median household income: $77,735
Retirement account prevalence: 55.4%
IRA or Keogh Account prevalence: 30%
401(k) & Thrift Savings Plan prevalence: 43.4%
Montana
Median retirement savings: $76,000
Median household income: $75,340
Retirement account prevalence: 68.4%
IRA or Keogh Account prevalence: 46.4%
401(k) & Thrift Savings Plan prevalence: 49.7%
Tennessee
Median retirement savings: $74,500
Median household income: $71,997
Retirement account prevalence: 60%
IRA or Keogh Account prevalence: 29%
401(k) & Thrift Savings Plan prevalence: 49.1%
Georgia
Median retirement savings: $72,000
Median household income: $79,991
Retirement account prevalence: 50.4%
IRA or Keogh Account prevalence: 22.9%
401(k) & Thrift Savings Plan prevalence: 43.5%
Indiana
Median retirement savings: $71,700
Median household income: $71,959
Retirement account prevalence: 63.8%
IRA or Keogh Account prevalence: 29.6%
401(k) & Thrift Savings Plan prevalence: 56.4%
Iowa
Median retirement savings: $70,000
Median household income: $75,501
Retirement account prevalence: 72.4%
IRA or Keogh Account prevalence: 42.8%
401(k) & Thrift Savings Plan prevalence: 55%
Nevada
Median retirement savings: $70,000
Median household income: $81,134
Retirement account prevalence: 55.1%
IRA or Keogh Account prevalence: 27.5%
401(k) & Thrift Savings Plan prevalence: 43.1%
Arizona
Median retirement savings: $69,500
Median household income: $81,486
Retirement account prevalence: 64.9%
IRA or Keogh Account prevalence: 33.2%
401(k) & Thrift Savings Plan prevalence: 53%
Utah
Median retirement savings: $62,800
Median household income: $96,658
Retirement account prevalence: 73.7%
IRA or Keogh Account prevalence: 32.7%
401(k) & Thrift Savings Plan prevalence: 60.3%
Wisconsin
Median retirement savings: $58,000
Median household income: $77,488
Retirement account prevalence: 72.9%
IRA or Keogh Account prevalence: 40.2%
401(k) & Thrift Savings Plan prevalence: 55.6%
Missouri
Median retirement savings: $57,000
Median household income: $71,589
Retirement account prevalence: 57.0%
IRA or Keogh Account prevalence: 31.6%
401(k) & Thrift Savings Plan prevalence: 46%
North Carolina
Median retirement savings: $56,000
Median household income: $73,958
Retirement account prevalence: 63.5%
IRA or Keogh Account prevalence: 32.4%
401(k) & Thrift Savings Plan prevalence: 54.5%
Kansas
Median retirement savings: $56,000
Median household income: $75,514
Retirement account prevalence: 71.6%
IRA or Keogh Account prevalence: 37.3%
401(k) & Thrift Savings Plan prevalence: 53.3%
Texas
Median retirement savings: $55,000
Median household income: $79,721
Retirement account prevalence: 55.2%
IRA or Keogh Account prevalence: 27.6%
401(k) & Thrift Savings Plan prevalence: 47.3%
Arkansas
Median retirement savings: $54,490
Median household income: $62,106
Retirement account prevalence: 42.9%
IRA or Keogh Account prevalence: 16.9%
401(k) & Thrift Savings Plan prevalence: 36.4%
West Virginia
Median retirement savings: $54,400
Median household income: $60,798
Retirement account prevalence: 47.4%
IRA or Keogh Account prevalence: 14.7%
401(k) & Thrift Savings Plan prevalence: 41.2%
South Carolina
Median retirement savings: $50,300
Median household income: $72,350
Retirement account prevalence: 56.6%
IRA or Keogh Account prevalence: 23.7%
401(k) & Thrift Savings Plan prevalence: 48.8%
New Mexico
Median retirement savings: $50,000
Median household income: $67,816
Retirement account prevalence: 53.6%
IRA or Keogh Account prevalence: 18.8%
401(k) & Thrift Savings Plan prevalence: 47%
Kentucky
Median retirement savings: $50,000
Median household income: $64,526
Retirement account prevalence: 51.7%
IRA or Keogh Account prevalence: 22.7%
401(k) & Thrift Savings Plan prevalence: 41.7%
Louisiana
Median retirement savings: $50,000
Median household income: $60,986
Retirement account prevalence: 44.1%
IRA or Keogh Account prevalence: 13.3%
401(k) & Thrift Savings Plan prevalence: 38.3%
Alabama
Median retirement savings: $46,000
Median household income: $66,659
Retirement account prevalence: 43.1%
IRA or Keogh Account prevalence: 21.9%
401(k) & Thrift Savings Plan prevalence: 33.7%
Oklahoma
Median retirement savings: $39,450
Median household income: $66,148
Retirement account prevalence: 47.9%
IRA or Keogh Account prevalence: 19.7%
401(k) & Thrift Savings Plan prevalence: 39.9%
Mississippi
Median retirement savings: $35,000
Median household income: $59,127
Retirement account prevalence: 41.8%
IRA or Keogh Account prevalence: 10.4%
401(k) & Thrift Savings Plan prevalence: 35.8%
Data and Methodology
Household retirement data comes from the U.S. Census Bureau for 2023, published July 2025. Median household income data comes from the U.S. Census Bureau 1-Year American Community Survey for 2024. Full data was available for 40 states (data for Alaska, Delaware, Maine, Nebraska, New Hampshire, North Dakota, South Dakota, Rhode Island, Vermont and Wyoming was unavailable).
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