Retirement readiness in the U.S. is far from uniform, with households in some states significantly better prepared than others.
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A new analysis from SmartAsset ranks 40 states by average household retirement savings and shows how residents use tax-advantaged accounts such as 401(k)s and IRAs.
Among Americans who have at least one retirement account, the typical household has roughly one year of its current annual income saved in these accounts, or about $82,000 per household, according to Census data.
While most workers will receive Social Security benefits in retirement, those payments often fall short of covering expenses, especially as healthcare and other age-related costs increase.
The report highlights wide differences across states. Massachusetts leads with an average of $150,000 in household retirement savings and the highest participation rate, with nearly three-quarters of households using tax-advantaged accounts. Mississippi ranks lowest, with $35,000 saved on average and only 41.8% of households using retirement-specific accounts.
The study also shows how preferences for retirement accounts vary geographically. Maryland has the highest share of households using 401(k)s, while Montana leads in IRA usage, including Roth and Keogh accounts.
For financial advisors, these findings reveal where clients may be well-prepared or may need more guidance, helping to shape tailored planning strategies. Here’s how your state stacks up:
In SmartAsset’s study, household retirement savings data are sourced from the U.S. Census Bureau for 2023, published in July 2025. Median household income figures come from the 2024 U.S. Census Bureau 1-Year American Community Survey. Complete data were available for 40 states. Data for Alaska, Delaware, Maine, Nebraska, New Hampshire, North Dakota, South Dakota, Rhode Island, Vermont and Wyoming were not available.
