Comparison of Retirement Savings: Red States vs. Blue States

The landscape of retirement savings across the United States reveals a complex picture, influenced not just by individual financial habits but also by broader economic factors that vary from state to state. A recent analysis by Personal Capital sheds light on the average retirement account balances across the nation, offering a unique lens through which to view the financial readiness of Americans for retirement. This comparison between red and blue states, based on their voting patterns in the 2020 presidential election, provides insights into how geography and political climate might correlate with retirement savings.

• Average retirement balance: $395,563

• Average retirement balance: $503,822

• Average retirement balance: $364,395

• Average retirement balance: $437,396

• Average retirement balance: $405,732

• Average retirement balance: $465,127

• Average retirement balance: $452,703

• Average retirement balance: $441,757

• Average retirement balance: $386,908

• Average retirement balance: $347,884

• Average retirement balance: $410,656

• Average retirement balance: $390,768

• Average retirement balance: $404,650

• Average retirement balance: $319,609 – the lowest in the country.

• Average retirement balance: $361,366

• Average retirement balance: $449,486

• Average retirement balance: $449,628

• Average retirement balance: $376,476

• Average retirement balance: $434,328

• Average retirement balance: $315,160

• Average retirement balance: $370,532

• Average retirement balance: $381,133

• Average retirement balance: $427,418

• Average retirement balance: $452,135

• Average retirement balance: $449,719

• Average retirement balance: $545,754 – the highest in the country.

• Average retirement balance: $454,679

• Average retirement balance: $435,254

• Average retirement balance: $366,776

• Average retirement balance: $449,983

• Average retirement balance: $403,751

• Average retirement balance: $485,501

• Average retirement balance: $478,947

• Average retirement balance: $439,568

• Average retirement balance: $470,549

• Average retirement balance: $379,728

• Average retirement balance: $512,781

• Average retirement balance: $514,245

• Average retirement balance: $428,041

• Average retirement balance: $382,027

• Average retirement balance: $452,558

• Average retirement balance: $462,075

• Average retirement balance: $392,622

• Average retirement balance: $494,569

• Average retirement balance: $492,965

• Average retirement balance: $469,987

• Average retirement balance: $448,975

• Average retirement balance: $347,582

This state-by-state breakdown reveals that while no state averages retirement savings close to the often-recommended $1 million mark, there are notable differences between red and blue states. Connecticut, a blue state, boasts the highest average retirement savings, closely followed by other blue states like New Jersey and New Hampshire, indicating a trend where blue states might have slightly higher retirement account balances on average. However, red states like Alaska and South Dakota also show strong average balances, challenging the notion that political affiliation directly correlates with retirement savings levels.

The disparities in retirement savings across states underscore the importance of individual financial planning and the need for increased participation in retirement savings plans. With the average Social Security payout falling short of covering living expenses, Americans, regardless of their state’s political leaning, must prioritize and strategize their retirement savings to ensure financial security in their later years.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.