{"id":428518,"date":"2026-01-25T06:48:30","date_gmt":"2026-01-25T06:48:30","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/428518\/"},"modified":"2026-01-25T06:48:30","modified_gmt":"2026-01-25T06:48:30","slug":"12-states-with-the-lowest-average-retirement-savings-is-yours-one-of-them","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/428518\/","title":{"rendered":"12 states with the lowest average retirement savings \u2014 is yours one of them?"},"content":{"rendered":"

Retirement accounts like 401(k)s, IRAs and 403(b)s can jump-start your long-term savings by offering tax breaks, and workplace plans may also include employer matching.<\/p>\n

Fidelity Investments reports that the average 401(k) balance was $144,400 in the third quarter of 2025<\/a>. That\u2019s not the full picture of retirement savings across all account types, but it offers a useful benchmark. Where you live makes a big difference in how much you\u2019ve managed to save \u2014 particularly if you live in one of a dozen states that a recent GoBankingRates study<\/a> highlights.<\/p>\n

Here are the 12 states with the lowest average retirement savings, the economic challenges U.S. Census Bureau data reveals are holding savers back and proven strategies to strengthen your own nest egg, no matter where you call home.<\/p>\n

\u2b50\ufe0f Must read: Big tax changes are coming: 13 rules that may boost your refund \u2014 or shrink it<\/a><\/p>\n

1. Utah\"\"<\/p>\n

(aheflin via Getty Images)<\/p>\n

Average retirement savings: $315,160<\/p>\n

Utah takes the top spot with the lowest average retirement balance in the U.S. at $315,160, a surprising ranking given the state’s high incomes and low poverty.<\/p>\n

Residents in the Beehive State enjoy high median household incomes of $96,658, about 18% higher than the national median of $81,604, according to U.S. Census data<\/a>. Its poverty rate is also well below the national average: 8.3% in Utah<\/a> versus 10.6% for the U.S. overall.<\/p>\n

So what explains the low retirement savings? Utah has the nation’s youngest population with a median age of 31.7, meaning residents may be early in their careers or busy raising families \u2014 stages of life that can affect how much one can sock away, even with good paychecks.<\/p>\n

\ud83d\udd0d Read more: How all 50 states tax retirees and their income \u2014 updated for 2026 <\/a><\/p>\n

2. North Dakota\"An<\/p>\n

An expansive aerial perspective captures the charming town of Devils Lake, North Dakota<\/p>\n

(GummyBone via Getty Images)Average retirement savings: $319,609<\/p>\n

North Dakota edges past Utah with an average retirement balance of $319,609, despite lower household income and a higher poverty rate. The median household income in this Great Plains state is $77,871, about $18,800 less than in Utah, though the state’s poverty rate is 11.1%.<\/p>\n

So why the higher savings? It’s likely demographics play the biggest role. North Dakota has a significantly older population than Utah, with more than a quarter of its residents older than 55. Those extra decades of working and saving add up.<\/p>\n

\ud83d\udd0d Read more: These 9 states still tax retirees’ Social Security \u2014 but one’s quitting in 2026<\/a><\/p>\n

3. Mississippi\"\"<\/p>\n

(Jeremy Woodhouse via Getty Images)<\/p>\n

Average retirement savings: $347,884<\/p>\n

Mississippi ranks third for lowest average retirement balance in the U.S. at $347,884 \u2014 a spot that aligns with the state’s economic factors. The Magnolia State has the nation’s lowest median income at $59,127 and the second-highest poverty rate at 17.8%, according to U.S. Census data.<\/p>\n

With nearly 1 in 5 residents living below the poverty line, far above the 10.6% national average, many Mississippians struggle to meet basic needs, leaving less room to save for retirement.<\/p>\n

\ud83d\udd0d Read more: 25% of all retirement savings sit in forgotten 401(k)s. Is any of it yours?<\/a><\/p>\n

4. Oklahoma\"\"<\/p>\n

(DenisTangneyJr via Getty Images)<\/p>\n

Average retirement savings: $361,366<\/p>\n

Oklahoma\u2019s average retirement savings of $361,366 narrowly beats Mississippi’s by about $13,500, though economic conditions are similar for its residents. The median household income sits at $66,148, while the poverty rate of 14.9% ranks eighth-highest among states, according to U.S. Census data.<\/p>\n

\ud83d\udd0d Read more: Private jets, pools and pups: 7 wild tax deductions the IRS actually allows<\/a><\/p>\n

5. Arkansas\"\"<\/p>\n

(Brandon Olafsson via Getty Images)<\/p>\n

Average retirement savings: $364,395<\/p>\n

Arkansas holds the fifth spot with an average retirement savings balance of $364,395. Interestingly, the state’s median income of $62,106 ranks among the lowest on our list, according to U.S. Census data, while the poverty rate of 15.5% \u2014 though higher than the 10.6% national average \u2014 reflects economic struggles across the state.<\/p>\n

Like Oklahoma, residents of Arkansas face the challenge of building retirement security in an economy where wages barely stretch beyond basic needs.<\/p>\n

\ud83d\udd0d Read more: What happens if you can\u2019t pay your taxes by the April 15 deadline?<\/a><\/p>\n

6. Hawaii\"Hanalei<\/p>\n

Hanalei Bay, Kauai Hawaii<\/p>\n

(DOUGBERRY via Getty Images)Average retirement savings: $366,776<\/p>\n

Hawaiians have the highest median income of all 12 states on this list at $100,745 \u2014 a huge $41,618 gap with Mississippi \u2014 and a poverty rate of 10.0% that’s only slightly higher than Utah’s, according to U.S. Census data.<\/p>\n

The culprit? A high cost of living. While a household earning $100,000 might live comfortably and save aggressively in Mississippi or Arkansas, that same income barely covers the essentials in Hawaii, where housing alone can consume 40% or more of your take-home pay.<\/p>\n

\ud83d\udd0d Read more:

\u2018Will Social Security run out of money?\u2019 5 common fears vs. facts<\/a><\/p>\n

8. Tennessee\"\"<\/p>\n

(Malcolm MacGregor via Getty Images)<\/p>\n

Average retirement savings: $376,476<\/p>\n

Tennessee’s average retirement savings of $376,476 outpace West Virginia’s, anchored by somewhat better living conditions.<\/p>\n

The Volunteer State’s median household income sits at $71,997, while the poverty rate of 13.5% is still more than 2 percentage points above the 10.6% national average but lower than neighboring states, according to U.S. Census data. No state income tax<\/a> may help residents sock away more in retirement accounts, though many still struggle with economic insecurity.<\/p>\n

\ud83d\udd0d Read more: The IRS owes you one: 9 tax breaks after 50 you might be missing out on<\/a><\/p>\n

9. Nevada\"Aerial<\/p>\n

Aerial view of Las Vegas strip in Nevada as seen at night USA<\/p>\n

(f11photo via Getty Images)Average retirement savings: $379,728<\/p>\n

Nevada’s average retirement savings of $379,728 puts the state at the higher end on our list. The Silver State’s median household income of $81,134 is close to the national average, while 11.6% of the state’s population lives below the poverty line, according to U.S. Census data. The combination of higher incomes and lower poverty compared to Tennessee may explain why Nevadans can save a bit more for retirement, despite the state’s reliance on inconsistent tourism and gambling industries.<\/p>\n

\ud83d\udd0d Read more: 6 surprising tax breaks every pet owner should know about<\/a><\/p>\n

10. Wyoming\"Cheyenne,<\/p>\n

Cheyenne, United States – August 12, 2022: The iconic <\/p>\n

(Art Wager via Getty Images)Average retirement savings: $381,133<\/p>\n

The Equality State’s median household income of $75,532 is below the $81,604 national median, and just 10.1% of residents live below the poverty line \u2014 better than the 10.6% national rate, according to Census data. A lack of income tax<\/a> might help explain retirement savings that, while low nationally, outperform many other states on this list.<\/p>\n

\ud83d\udd0d Read more: 6 insurance policies that matter most after retirement \u2014 and 3 you can ditch<\/a><\/p>\n

11. New York\"Woman<\/p>\n

Woman tourist watching Brooklyn Bridge, New York City, USA<\/p>\n

(Francesco Riccardo Iacomino via Getty Images)Average retirement savings: $382,027<\/p>\n

Didn’t expect to see the Empire State land on this list? New York ranks 11th with average retirement savings of $382,027 \u2014 low for a state with a median household income of $85,820, above the $81,604 national average. About 14.0% of New Yorkers live below the poverty line, according to U.S. Census data.<\/p>\n

High state and local taxes<\/a> combined with some of the nation’s steepest housing costs mean that above-average incomes don’t stretch as far for New Yorkers as the numbers suggest.<\/p>\n

\ud83d\udd0d Read more: These 7 taxes catch most people off guard (even if you file on time)<\/a><\/p>\n

12. Louisiana\"Nice,<\/p>\n

Nice, historic houses in the streets of New Orleans, Louisiana<\/p>\n

(picturist via Getty Images)Average retirement savings: $386,908<\/p>\n

Rounding out our list is Louisiana, where average retirement savings of $386,908 edge out Utah by about $70,000.<\/p>\n

Yet the state faces some of the most difficult economic conditions in America. Median household income sits at just $60,986, barely $1,850 higher than Mississippi’s, according to the U.S. Census. And a poverty rate of 18.7% \u2014 the highest of any state, according to U.S. Census data \u2014 means nearly 1 in 5 Louisianans struggles with day-to-day expenses, making retirement readiness a struggle.<\/p>\n

\ud83d\udd0d Read more: 7 big changes coming to Social Security in 2026 (one that could shrink your check)<\/a><\/p>\n

How much can you save for retirement?<\/p>\n

Employer-sponsored retirement plans like 401(k)s and 403(b)s are appealing savings options, offering tax benefits and the ability to put away more for the future. With traditional 401(k)s and 403(b)s, you fund accounts with pre-tax dollars, reducing your taxable income and potentially resulting in a lower tax bill. Roth versions of these plans are funded with after-tax dollars but offer tax-free withdrawals in retirement.<\/p>\n

In 2026, you can contribute up to $24,500 to workplace retirement plans, which is more than three times the amount you can put into a traditional IRA or Roth IRA<\/a>. Your workplace retirement limits increase by an extra $8,000 if you’re 50 or older or $11,250 if you’re 60 to 63.<\/p>\n

\ud83d\udd0d Read more: New 401(k) and IRA limits for 2026: See how much more you can save<\/a><\/p>\n

How to save more for your golden years<\/p>\n

If you have access to a 401(k), max out your employer match first. While people often say this is \u201cfree money,\u201d it\u2019s actually part of your total compensation package, just like your salary, and so you should take advantage of it. No 401(k)? Grow your retirement savings through tax-advantaged accounts like traditional or Roth IRAs<\/a>.<\/p>\n

Figure out how much you can afford to put aside for retirement, regardless of the account type you use.<\/p>\n

\u201cMy advice for those looking to boost their retirement savings is to first create a monthly budget. Determining how you can remove excess monthly costs can help free up some income. Reviewing home and auto insurance, unused monthly subscriptions and more can help trim how much money is being spent each month,\u201d says Fannon. Here\u2019s how to approach this:<\/p>\n

Reduce your expenses. Lowering your overall expenses can provide more funds to put toward your retirement. Look to popular budgeting strategies<\/a> to find the best fit with your lifestyle, spending and income.<\/p>\n

Take advantage of pay increases. If you get a raise, put more of it toward your 401(k) or IRA.<\/p>\n

Gradually increase contributions. The goal is to save more for retirement, ideally to the maximum contribution limit<\/a> per year. If you can’t do that, start slowly and gradually increase contributions, re-evaluating your budget every quarter.<\/p>\n

Max out your employer contributions. We can’t say it enough: It’s valuable money you don’t want to leave on the table.<\/p>\n

\ud83d\udd0d Read more: How to recession-proof your retirement: 7 smart strategies to fortify your nest egg<\/a><\/p>\n

Other stories you’ll likeAbout the writer<\/p>\n

Kelly Suzan Waggoner<\/a> is personal finance editor at AOL, where she empowers those planning for, newly entering or fully enjoying retirement to get the most out of their finances \u2014 whether that\u2019s saving money, managing debt, maximizing rewards or growing their wealth. Before AOL, Kelly was managing editor at Bankrate and editor-in-chief at Finder, where she led teams focused on helping people navigate unfamiliar financial decisions around banking, lending, credit cards, investments and more. Her work has appeared in Nasdaq, Lifehacker and other publications, as well as through various publishers, magazines and nonprofits throughout New York City. She’s also the ghostwriter behind a how-to on copyediting for the Dummies series. Outside of finance, she toys with words, flips through style guides and fantasizes about the serial comma\u2019s world domination.<\/p>\n

Melanie Lockert<\/a> contributed to a previous version of this article<\/p>\n

\ud83d\udce9 Have thoughts or comments about this story \u2014 or ideas on topics you\u2019d like us to cover? Reach out to our team at finance.editors@aol.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Retirement accounts like 401(k)s, IRAs and 403(b)s can jump-start your long-term savings by offering tax breaks, and workplace…\n","protected":false},"author":2,"featured_media":400672,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,86111,2934,90345,203627,147,530,90346,1666,1048],"class_list":["post-428518","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-census-data","tag-getty-images","tag-median-household-income","tag-median-household-incomes","tag-personal-finance","tag-personalfinance","tag-poverty-rate","tag-retirement","tag-retirement-savings"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/428518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=428518"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/428518\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/400672"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=428518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=428518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=428518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}