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15 States with Most, 5 States with Least Retirement Savings

Brian Anderson

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

Image credit: © Marian Vejcik | Dreamstime.com

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.

Massachusetts had the highest average retirement savings and retirement account usage. Image credit: © Ruletkka | Dreamstime.com

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.

2. Hawaii

3. Washington

4. New Jersey

Maryland had the highest 401(k) usage in the SmartAsset study. Image credit: © Ruletkka | Dreamstime.com

5. Maryland

6. Connecticut

7. (tie) Minnesota

7. (tie) Illinois

9. Pennsylvania

Colorado ties for 10th with California and Ohio. Image credit: © Ruletkka | Dreamstime.com

10. (tie) Colorado

10. (tie) California

10. (tie) Ohio

13. Oregon

14. Idaho

Virginia. Image credit: © Ruletkka | Dreamstime.com

15. Virginia

Which state has the highest average retirement savings?

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%).

Which state has the lowest average retirement savings?

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.

What is the average retirement savings for an American household?

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) >

The 5 States With the Least Retirement Savings (Page 2)

Mississippi had the least average retirement savings in the study. Image credit: © Ruletkka | Dreamstime.com

1. Mississippi

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.

2. Oklahoma

3. Alabama

4. Louisiana

Kentucky. Image credit: © Ruletkka | Dreamstime.com

5. Kentucky

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). Check out the complete study from SmartAsset here.

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