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Jaclyn DeJohn, CFP for SmartAsset

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Tax-advantaged retirement accounts can give savers a leg up in building their nest egg.

While many American workers qualify for Social Security benefits in retirement, these benefits are rarely enough to cover expenses—especially since retirement often brings added costs for health care and aging.

On average, Americans have roughly one year’s worth of their current annual income saved in tax-advantaged accounts. For most households, that figure hovers around $80,000.

Read More on Personal Finance

However, the face value may not reflect true purchasing power, because different accounts and investments are taxed differently at the time of distribution.

With this in mind, 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.

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Key Findings

• Massachusetts residents have the most retirement savings. Households have an average of $150,000 in retirement savings in the Bay State. Massachusetts also holds the record for retirement account prevalence, with 74.8% of households taking advantage of tax-advantaged retirement accounts.
• Mississippi residents are saving the least for retirement. 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.
• 65% of households in Maryland use 401(k)s. Maryland has the highest preference for 401(k)s as retirement vehicles studywide. The average retirement savings across the state is $120,000, ranking fifth overall. Massachusetts (60.9%), Utah (60.3%), Washington (60.2%), and Minnesota (59%) also have among the highest rates of 401(k) use.
• IRAs are most popular in these states. Montana households have the highest preference for IRAs — including Roth and Keogh accounts — with a 46.4% use rate and a median retirement savings of $76,000. Households in Minnesota and Oregon also tend to use IRA accounts, with 45.2% and 45.1% of households funding these accounts, respectively.

Retirement Savings by State

States are ranked based on the median household savings in tax-advantaged retirement accounts.

1. Massachusetts

• Median retirement savings: $150,000
• Median household income: $104,828
• Retirement account prevalence: 74.8%
• IRA or Keogh Account prevalence: 40.6%
• 401(k) & Thrift Savings Plan prevalence: 60.9%

1. Hawai‘i

• Median retirement savings: $149,000
• Median household income: $100,745
• Retirement account prevalence: 65.0%
• IRA or Keogh Account prevalence: 43.6%
• 401(k) & Thrift Savings Plan prevalence: 56.2%

1. Washington

• Median retirement savings: $143,400
• Median household income: $99,389
• Retirement account prevalence: 70.3%
• IRA or Keogh Account prevalence: 43.6%
• 401(k) & Thrift Savings Plan prevalence: 60.2%

1. New Jersey

• Median retirement savings: $134,000
• Median household income: $104,294
• Retirement account prevalence: 66.7%
• IRA or Keogh Account prevalence: 33.5%
• 401(k) & Thrift Savings Plan prevalence: 56.1%

1. Maryland

• Median retirement savings: $120,000
• Median household income: $102,905
• Retirement account prevalence: 73.5%
• IRA or Keogh Account prevalence: 39.3%
• 401(k) & Thrift Savings Plan prevalence: 65%

1. Connecticut

• Median retirement savings: $118,400
• Median household income: $96,049
• Retirement account prevalence: 69.9%
• IRA or Keogh Account prevalence: 38.1%
• 401(k) & Thrift Savings Plan prevalence: 58.8%

1. Minnesota

• Median retirement savings: $111,000
• Median household income: $87,117
• Retirement account prevalence: 71.4%
• IRA or Keogh Account prevalence: 45.2%
• 401(k) & Thrift Savings Plan prevalence: 59%

1. Illinois

• Median retirement savings: $111,000
• Median household income: $83,211
• Retirement account prevalence: 66.7%
• IRA or Keogh Account prevalence: 36.9%
• 401(k) & Thrift Savings Plan prevalence: 55.7%

1. Pennsylvania

• Median retirement savings: $101,800
• Median household income: $77,545
• Retirement account prevalence: 62.6%
• IRA or Keogh Account prevalence: 33.2%
• 401(k) & Thrift Savings Plan prevalence: 51.3%

1. Colorado

• Median retirement savings: $100,000
• Median household income: $97,113
• Retirement account prevalence: 68.5%
• IRA or Keogh Account prevalence: 38.3%
• 401(k) & Thrift Savings Plan prevalence: 55.4%

1. California

• Median retirement savings: $100,000
• Median household income: $100,149
• Retirement account prevalence: 61.8%
• IRA or Keogh Account prevalence: 34.2%
• 401(k) & Thrift Savings Plan prevalence: 51.7%

1. Ohio

• Median retirement savings: $100,000
• Median household income: $72,212
• Retirement account prevalence: 61.1%
• IRA or Keogh Account prevalence: 35.2%
• 401(k) & Thrift Savings Plan prevalence: 46.3%

1. Oregon

• Median retirement savings: $92,400
• Median household income: $85,220
• Retirement account prevalence: 70.3%
• IRA or Keogh Account prevalence: 45.1%
• 401(k) & Thrift Savings Plan prevalence: 56.7%

1. Idaho

• Median retirement savings: $89,000
• Median household income: $81,166
• Retirement account prevalence: 70%
• IRA or Keogh Account prevalence: 37%
• 401(k) & Thrift Savings Plan prevalence: 58.6%

1. Virginia

• Median retirement savings: $85,200
• Median household income: $92,090
• Retirement account prevalence: 70.6%
• IRA or Keogh Account prevalence: 42.0%
• 401(k) & Thrift Savings Plan prevalence: 57.9%

1. Michigan

• Median retirement savings: $85,000
• Median household income: $72,389
• Retirement account prevalence: 63.2%
• IRA or Keogh Account prevalence: 33.3%
• 401(k) & Thrift Savings Plan prevalence: 53.3%

1. New York

• Median retirement savings: $80,000
• Median household income: $85,820
• Retirement account prevalence: 60.6%
• IRA or Keogh Account prevalence: 32.2%
• 401(k) & Thrift Savings Plan prevalence: 49.1%

1. Florida

• Median retirement savings: $78,000
• Median household income: $77,735
• Retirement account prevalence: 55.4%
• IRA or Keogh Account prevalence: 30%
• 401(k) & Thrift Savings Plan prevalence: 43.4%

1. Montana

• Median retirement savings: $76,000
• Median household income: $75,340
• Retirement account prevalence: 68.4%
• IRA or Keogh Account prevalence: 46.4%
• 401(k) & Thrift Savings Plan prevalence: 49.7%

1. Tennessee

• Median retirement savings: $74,500
• Median household income: $71,997
• Retirement account prevalence: 60%
• IRA or Keogh Account prevalence: 29%
• 401(k) & Thrift Savings Plan prevalence: 49.1%

1. Georgia

• Median retirement savings: $72,000
• Median household income: $79,991
• Retirement account prevalence: 50.4%
• IRA or Keogh Account prevalence: 22.9%
• 401(k) & Thrift Savings Plan prevalence: 43.5%

1. Indiana

• Median retirement savings: $71,700
• Median household income: $71,959
• Retirement account prevalence: 63.8%
• IRA or Keogh Account prevalence: 29.6%
• 401(k) & Thrift Savings Plan prevalence: 56.4%

1. Iowa

• Median retirement savings: $70,000
• Median household income: $75,501
• Retirement account prevalence: 72.4%
• IRA or Keogh Account prevalence: 42.8%
• 401(k) & Thrift Savings Plan prevalence: 55%

1. Nevada

• Median retirement savings: $70,000
• Median household income: $81,134
• Retirement account prevalence: 55.1%
• IRA or Keogh Account prevalence: 27.5%
• 401(k) & Thrift Savings Plan prevalence: 43.1%

1. Arizona

• Median retirement savings: $69,500
• Median household income: $81,486
• Retirement account prevalence: 64.9%
• IRA or Keogh Account prevalence: 33.2%
• 401(k) & Thrift Savings Plan prevalence: 53%

1. Utah

• Median retirement savings: $62,800
• Median household income: $96,658
• Retirement account prevalence: 73.7%
• IRA or Keogh Account prevalence: 32.7%
• 401(k) & Thrift Savings Plan prevalence: 60.3%

1. Wisconsin

• Median retirement savings: $58,000
• Median household income: $77,488
• Retirement account prevalence: 72.9%
• IRA or Keogh Account prevalence: 40.2%
• 401(k) & Thrift Savings Plan prevalence: 55.6%

1. Missouri

• Median retirement savings: $57,000
• Median household income: $71,589
• Retirement account prevalence: 57.0%
• IRA or Keogh Account prevalence: 31.6%
• 401(k) & Thrift Savings Plan prevalence: 46%

1. North Carolina

• Median retirement savings: $56,000
• Median household income: $73,958
• Retirement account prevalence: 63.5%
• IRA or Keogh Account prevalence: 32.4%
• 401(k) & Thrift Savings Plan prevalence: 54.5%

1. Kansas

• Median retirement savings: $56,000
• Median household income: $75,514
• Retirement account prevalence: 71.6%
• IRA or Keogh Account prevalence: 37.3%
• 401(k) & Thrift Savings Plan prevalence: 53.3%

1. Texas

• Median retirement savings: $55,000
• Median household income: $79,721
• Retirement account prevalence: 55.2%
• IRA or Keogh Account prevalence: 27.6%
• 401(k) & Thrift Savings Plan prevalence: 47.3%

1. Arkansas

• Median retirement savings: $54,490
• Median household income: $62,106
• Retirement account prevalence: 42.9%
• IRA or Keogh Account prevalence: 16.9%
• 401(k) & Thrift Savings Plan prevalence: 36.4%

1. West Virginia

• Median retirement savings: $54,400
• Median household income: $60,798
• Retirement account prevalence: 47.4%
• IRA or Keogh Account prevalence: 14.7%
• 401(k) & Thrift Savings Plan prevalence: 41.2%

1. South Carolina

• Median retirement savings: $50,300
• Median household income: $72,350
• Retirement account prevalence: 56.6%
• IRA or Keogh Account prevalence: 23.7%
• 401(k) & Thrift Savings Plan prevalence: 48.8%

1. New Mexico

• Median retirement savings: $50,000
• Median household income: $67,816
• Retirement account prevalence: 53.6%
• IRA or Keogh Account prevalence: 18.8%
• 401(k) & Thrift Savings Plan prevalence: 47%

1. Kentucky

• Median retirement savings: $50,000
• Median household income: $64,526
• Retirement account prevalence: 51.7%
• IRA or Keogh Account prevalence: 22.7%
• 401(k) & Thrift Savings Plan prevalence: 41.7%

1. Louisiana

• Median retirement savings: $50,000
• Median household income: $60,986
• Retirement account prevalence: 44.1%
• IRA or Keogh Account prevalence: 13.3%
• 401(k) & Thrift Savings Plan prevalence: 38.3%

1. Alabama

• Median retirement savings: $46,000
• Median household income: $66,659
• Retirement account prevalence: 43.1%
• IRA or Keogh Account prevalence: 21.9%
• 401(k) & Thrift Savings Plan prevalence: 33.7%

1. Oklahoma

• Median retirement savings: $39,450
• Median household income: $66,148
• Retirement account prevalence: 47.9%
• IRA or Keogh Account prevalence: 19.7%
• 401(k) & Thrift Savings Plan prevalence: 39.9%

1. Mississippi

• Median retirement savings: $35,000
• Median household income: $59,127
• Retirement account prevalence: 41.8%
• IRA or Keogh Account prevalence: 10.4%
• 401(k) & Thrift Savings Plan prevalence: 35.8%

Data and 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).

This story was produced by SmartAsset and reviewed and distributed by Stacker.

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