10 US States with the Highest Average Retirement Savings

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Saving for retirement is one of the biggest financial goals for many Americans. But some people are saving more than others. The average amount saved varies widely from state to state. 

The personal finance experts at MarketWatch Guides have put together an in-depth analysis of which Americans are saving and how much. 

In a recent press release, they shared the results of a separate study. This one gives insight into personal finance on a state-by-state basis. They analyzed things like average salary, retirement savings, disposable income, and consumer debt to give each state an overall score. Depending on where you live, you could be more likely to be earning more money, have less debt, and have more in your retirement accounts.

Three of the states with the highest average retirement savings also made it onto the list of states with the best financial health: Connecticut, Massachusetts, and Washington.

Here’s a closer look at the top 10 states with the highest average retirement savings and the additional financial factors that make them stand out.

1. Connecticut: $545,754

Connecticut leads the nation with an impressive average retirement savings of more than $200,000 higher than the national average. The state also ranked high for overall financial health, thanks to high disposable income, which averages $73,888 per capita. That means Connecticut residents have more money available to save. They also rank high for average debt, though — at $110,034 per consumer.

Connecticut is helped by a relatively low inflation rate of 17% since January 2021, compared to the cumulative national rate of 16.43%. This helps preserve the value of retirement savings over time. 

2. New Jersey: $514,245

New Jersey’s average retirement savings ranks second on the list. 

Residents of the Garden State can benefit from their proximity to economic hubs like New York City and Philadelphia. That could potentially mean higher salaries for them, and, in turn, more savings. 

3. New Hampshire: $512,781

New Hampshire residents have saved an average of $512,781 for retirement, putting the state in third place. Like other New England states, New Hampshire has maintained a low cumulative inflation rate of 17% since January 2021, which helps residents make the most of their savings.

New Hampshire has no state income tax, helping to keep it affordable. The low inflation rate could also make it an appealing place to retire.

4. Alaska: $503,822

Alaska’s average retirement savings puts them fourth on the list. 

Alaska’s cost of living can be high, but residents there can benefit from the Permanent Fund Dividend, which provides extra income each year. Alaska also has no state income tax. If you can handle the remote location and the long hard winters, Alaska is a great place to live, speaking strictly financially.

5. Vermont: $494,569

Vermont ranks fifth for average retirement savings, as well as seventh for overall financial health, where they earned a 6.04 out of 10.

Vermont also benefits from low inflation rates, matching Connecticut, New Hampshire and Massachusetts at 17%.

At $30,933, disposable income in Vermont is lower than in other top-ranking states. And their debt is $90,960 per consumer.

6. Virginia: $492,965

Residents of The Old Dominion State are doing a great job planning for their retirement, landing it in sixth place. 

7. Maryland: $485,501

Maryland residents have saved an average of $485,501 for retirement, placing the state seventh on the list. Maryland is close to Washington, D.C., meaning government jobs are plentiful. 

8. Massachusetts: $478,947

Massachusetts ranks eighth for its average retirement savings. The state also earned a top spot for strong financial health, ranking ninth in the country. Like other New England states, Massachusetts has kept inflation rates low. Residents here have an average disposable income of $74,342, which is high, but they also have an average debt of $127,777.

9. Minnesota: $470,549

Minnesota’s retirement savings ranks ninth on the list, claiming the ninth spot with an average of $470,549. The Land of 10,000 Lakes gives its residents a solid foundation for their retirement planning. 

10. Washington: $469,987

Washington rounds out the top 10 with an average retirement savings of $469,987. 

The state’s financial health is high, too, ranking third in the nation with a score of 6.65 out of 10. Washington also has a high disposable income per capita at $79,705 — the highest in the country. Consumers here also have a lot of debt, though. The average is $150,462 per consumer. Washington is also the second state on this list with no state income tax. 

Altogether, high salaries and high savings make Washington one of the best states for overall financial health.

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