10 States Where People Are Saving for Retirement the Fastest

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Retirement — a period of enjoyment, rest and relaxation after decades of hard work. Your golden years shouldn’t be a time to worry about your finances, and proactive saving as quickly and early on as possible can make all the difference.

Today, more Americans are entering retirement than ever before. The Alliance for Lifetime Income explained that last year marked the beginning of the “Peak 65 Zone,” the largest surge of Americans turning 65 in U.S. history. More than 4.1 million Americans will turn 65 each year through 2027. That’s more than 11,200 each day.

While reaching retirement age is a milestone, entering retirement at age 65 should be a financially sound decision, and some households are preparing for this stage in their lives faster than others.

There are 10 states in particular where people are saving for retirement the fastest, according to SmartAsset. The top 10 states listed below are ranked based on the size of median retirement savings compared with median household income and retirement savings per dollar.

Also see how long $1 million in retirement will last in every state.

Kansas

• Retirement savings per dollar of median annual income: $2.78
• Retirement savings: $195,302
• Median household income: $70,333

Hawaii

• Retirement savings per dollar of median annual income: $2.40
• Retirement savings: $228,870
• Median household income: $95,322

Massachusetts

• Retirement savings per dollar of median annual income: $2.18
• Retirement savings: $218,189
• Median household income: $99,858

Maine

• Retirement savings per dollar of median annual income: $2.07
• Retirement savings: $152,580
• Median household income: $73,733

New Jersey

• Retirement savings per dollar of median annual income: $1.97
• Retirement savings: $196,828
• Median household income: $99,781

Illinois

• Retirement savings per dollar of median annual income: $1.92
• Retirement savings: $154,106
• Median household income: $80,306

Arizona

• Retirement savings per dollar of median annual income: $1.87
• Retirement savings: $144,951
• Median household income: $77,315

Wisconsin

• Retirement savings per dollar of median annual income: $1.84
• Retirement savings: $137,322
• Median household income: $74,631

Montana

• Retirement savings per dollar of median annual income: $1.82
• Retirement savings: $129,083
• Median household income: $70,804

Ohio

• Retirement savings per dollar of median annual income: $1.80
• Retirement savings: $122,095
• Median household income: $67,769

Saving the Fastest Doesn’t Mean More Savings

It’s worth noting that just because households in the top 10 states above are saving for retirement at the fastest rate doesn’t mean that these states have the most retirement savings per household.

For example, while Kansas and Hawaii were ranked as the top two states saving for retirement at the fastest rate, with average retirement savings per household of $195,302 and $228,870, respectively, they aren’t both the two states with the most retirement savings.

Hawaii and Massachusetts take the top two spots for the states with the most retirement savings per household, at $228,870 and $218,189, respectively. They are also two of the states with some of the highest median household incomes, nearing almost $100,000 ($95,322 and $99,858, respectively).

There is clearly some overlap between the states saving for retirement at the fastest rate and the states that currently have the most retirement savings per household, but the lists in each category vary.

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