15 States with Most, 5 States with Least Retirement Savings
New SmartAsset analysis finds wide state-by-state gap in average savings and utilization of tax-advantaged retirement accounts
A new study by 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 Takeaways: 2026 Retirement Savings by State
- The National Average: For most U.S. households, retirement savings hover around $80,000, representing roughly one year’s worth of annual income.
- The #1 State: Massachusetts leads the country with a median retirement savings of $150,000 and the highest overall retirement account utilization rate (74.8%).
- The Lowest Balances: Mississippi ranks at the bottom of the study, with median savings of just $35,000 and the lowest account adoption rate (41.8%).
- 401(k) vs. IRA Adoption: Maryland boasts the highest rate of 401(k) usage (65%), while Montana leads the nation in IRA adoption (46.4%).
On average, the study found Americans have roughly one year’s worth of their current annual income saved in tax-advantaged retirement accounts such as 401(k)s and IRAs. For most households, that figure hovers around $80,000.
But as you might expect, there is a significant retirement savings disparity between states—to the tune of over $100,000, and states on opposite ends of the spectrum also have the biggest disparity in their use of retirement accounts.
The study reveals 65% of households in Maryland use 401(k)s—highest of any state by more than 4%. Massachusetts (60.9%), Utah (60.3%), Washington (60.2%), and Minnesota (59.0%) round out the top five for the highest rates of 401(k) use.
IRAs—including Roths and Keogh accounts—are most popular in Montana, with a 46.4% use rate. Households in Minnesota and Oregon also tend to use IRA accounts, with 45.2% and 45.1% of households funding these accounts, respectively.
What follows are the top 15 states, ranked by SmartAsset based on the median household savings placed in tax-advantaged retirement accounts (including a breakdown of account preferences), as well as the 5 states with the lowest savings. Keep in mind that 10 states were not ranked due to a lack of comparable data.
States with Most Retirement Savings
States are ranked based on the median household savings in tax-advantaged retirement accounts.
1. Massachusetts
Households in The Bay State have an average of $150,000 in retirement savings, and Massachusetts also has the highest prevalence for tax-advantaged retirement accounts, with 74.8% of households taking advantage of them.
- Median retirement savings: $150,000
- Median household income: $104,828
- Retirement account prevalence: 74.8%
- 401(k) & Thrift Savings Plan prevalence: 60.9%
- IRA or Keogh Account prevalence: 40.6%
2. Hawaii
- Median retirement savings: $149,000
- Median household income: $100,745
- Retirement account prevalence: 65.0%
- 401(k) & Thrift Savings Plan prevalence: 56.2%
- IRA or Keogh Account prevalence: 43.6%
3. Washington
- Median retirement savings: $143,400
- Median household income: $99,389
- Retirement account prevalence: 70.3%
- 401(k) & Thrift Savings Plan prevalence: 60.2%
- IRA or Keogh Account prevalence: 43.6%
4. New Jersey
- Median retirement savings: $134,000
- Median household income: $104,294
- Retirement account prevalence: 66.7%
- 401(k) & Thrift Savings Plan prevalence: 56.1%
- IRA or Keogh Account prevalence: 33.5%
5. Maryland
- Median retirement savings: $120,000
- Median household income: $102,905
- Retirement account prevalence: 73.5%
- 401(k) & Thrift Savings Plan prevalence: 65.0%
- IRA or Keogh Account prevalence: 39.3%
6. Connecticut
- Median retirement savings: $118,400
- Median household income: $96,049
- Retirement account prevalence: 69.9%
- 401(k) & Thrift Savings Plan prevalence: 58.8%
- IRA or Keogh Account prevalence: 38.1%
7. (tie) Minnesota
- Median retirement savings: $111,000
- Median household income: $87,117
- Retirement account prevalence: 71.4%
- 401(k) & Thrift Savings Plan prevalence: 59.0%
- IRA or Keogh Account prevalence: 45.2%
7. (tie) Illinois
- Median retirement savings: $111,000
- Median household income: $83,211
- Retirement account prevalence: 66.7%
- 401(k) & Thrift Savings Plan prevalence: 55.7%
- IRA or Keogh Account prevalence: 36.9%
9. Pennsylvania
- Median retirement savings: $101,800
- Median household income: $77,545
- Retirement account prevalence: 62.6%
- 401(k) & Thrift Savings Plan prevalence: 51.3%
- IRA or Keogh Account prevalence: 33.2%
10. (tie) Colorado
- Median retirement savings: $100,000
- Median household income: $97,113
- Retirement account prevalence: 68.5%
- 401(k) & Thrift Savings Plan prevalence: 55.4%
- IRA or Keogh Account prevalence: 38.3%
10. (tie) California
- Median retirement savings: $100,000
- Median household income: $100,149
- Retirement account prevalence: 61.8%
- 401(k) & Thrift Savings Plan prevalence: 51.7%
- IRA or Keogh Account prevalence: 34.2%
10. (tie) Ohio
- Median retirement savings: $100,000
- Median household income: $72,212
- Retirement account prevalence: 61.1%
- 401(k) & Thrift Savings Plan prevalence: 46.3%
- IRA or Keogh Account prevalence: 35.2%
13. Oregon
- Median retirement savings: $92,400
- Median household income: $85,220
- Retirement account prevalence: 70.3%
- 401(k) & Thrift Savings Plan prevalence: 56.7%
- IRA or Keogh Account prevalence: 45.1%
14. Idaho
- Median retirement savings: $89,000
- Median household income: $81,166
- Retirement account prevalence: 70.0%
- 401(k) & Thrift Savings Plan prevalence: 58.6%
- IRA or Keogh Account prevalence: 37.0%
15. Virginia
- Median retirement savings: $85,200
- Median household income: $92,090
- Retirement account prevalence: 70.6%
- 401(k) & Thrift Savings Plan prevalence: 57.9%
- IRA or Keogh Account prevalence: 42.0%
According to 2026 SmartAsset data, Massachusetts has the highest median retirement savings at $150,000, as well as the highest prevalence of tax-advantaged retirement accounts (74.8%).
Mississippi has the lowest median retirement savings in the U.S. at just $35,000. It also has the lowest adoption rate for retirement-specific accounts, with only 41.8% of households utilizing them.
For most U.S. households, the average tax-advantaged retirement savings hovers around $80,000, which represents roughly one year’s worth of current annual income.
Next page: The 5 States With the Least Retirement Savings (Page 2) >