10 States With the Lowest Average Retirement Savings (Is Yours One?)

Most Americans hope their later years will feel comfortable and predictable, but the numbers tell a different story. Retirement savings vary wildly across the country, and in some places, the typical nest egg may not stretch far, especially with rising healthcare costs and longer life expectancies. Understanding where your state stands can highlight how well you've prepared for retirement compared to your neighbors.

Here's what the data shows, and what you can do about it.

How much Americans typically have saved for retirement

Across the U.S., retirement balances vary widely, but surveys consistently show that many households aren't saving enough. Fidelity's latest report found the average 401(k) balance is $144,400, while the average IRA holds around $137,902. But those are averages, skewed upward by high earners. The median savings, according to the Federal Reserve's most recent Survey of Consumer Finances, is much lower at $87,000 for households with retirement accounts.

For most workers, that won't cover decades of living expenses, which makes state-by-state comparisons even more important.

Here's how each state compares once you look at the actual dollar amounts behind the trend.

Utah

Utah takes the bottom spot with an average balance of $315,160. While the state is known for strong job growth and high household mobility, those same factors may delay long-term saving. Younger households often prioritize homebuying and family expenses before building retirement accounts, which can lead to late starts, even among steady earners.

North Dakota

North Dakota's average balance of $319,609 reflects an economy that leans heavily on agriculture and energy: two industries where income can swing widely from year to year. During boom years, contributions rise. During lean years, saving becomes difficult, and the inconsistency slows growth over time.

Mississippi

With an average of $347,884, Mississippi lands near the bottom as well. Advisors in the state often point to a combination of lower wages and fewer employer-sponsored plans. Many households rely on Social Security as their primary retirement income, leaving savings gaps that are hard to close later in life.

District of Columbia

Despite D.C.'s famously high cost of living, its average retirement balance ($347,582) falls surprisingly low. The number reflects the District's unique workforce: young professionals who often change jobs quickly and may take time to fully utilize employer plans. High rental costs also crowd out long-term savings for many residents.

Oklahoma

Oklahoma reports an average retirement balance of $361,366. The state's energy-driven economy creates earnings that rise and fall with market cycles. During downturns, retirement contributions naturally take a hit. Many residents tend to pause contributions when times get tight, an understandable choice that comes with long-term consequences.

Arkansas

Arkansas' average savings of $364,395 mirrors what's frequently described as a "rural retirement gap." Many workers don't have access to employer plans, and those who do sometimes contribute at lower rates. Without automatic enrollment or easy on-ramps, people often delay starting, sometimes until their 40s or 50s.

West Virginia

With an average balance of $370,532, West Virginia faces unique challenges. Many residents work in physically demanding jobs, and early retirement due to health issues is common. When someone retires 5-10 years sooner than planned, their savings window closes abruptly, and the numbers reflect that pressure.

Tennessee

Tennessee households average $376,476 in retirement savings. Strong tourism and service-sector employment can lead to inconsistent schedules and variable income. That unpredictability often translates to irregular contributions, a pattern that makes it harder to build long-term stability.

Nevada

Nevada's average of $379,728 fits a familiar pattern in regions dependent on hospitality and tourism. Workers' hours can swing dramatically season to season, and tips or service-based income aren't always reflected in retirement contributions. Many residents also face higher rent costs, which can crowd out long-term savings.

Louisiana

Louisiana rounds out the list with an average retirement balance of $386,908. Hurricanes and economic disruptions frequently interrupt residents' financial plans. Planners often describe families who save diligently but are forced to redirect money toward repairs, moves, or higher insurance costs, all of which make consistent retirement saving difficult.

How you can strengthen your own retirement savings

Regardless of where you live, there are concrete steps you can take to build greater security for the future.

• Increase contributions gradually: Small bumps can meaningfully improve long-term balances without overwhelming your monthly budget.
• Capture every dollar of employer match: Failing to collect the full employer match is one of the most avoidable missed opportunities in personal finance.
• Use catch-up contributions if you're 50+: The IRS allows older workers to contribute extra to 401(k)s and IRAs, giving late savers room to close gaps.
• Explore savings options beyond workplace plans: IRAs, SEP IRAs, and solo 401(k)s can help people without employer plans build long-term savings on their own terms.
• Reduce high-interest debt before retirement: Every dollar spent on interest is a dollar that can't go toward your future. Tackling high-interest debt early lightens the load later on.
• Prepare for health care costs: Medical expenses often become one of the largest parts of a retirement budget. Planning ahead and using HSAs if available can soften the impact.

Bottom line

When you put all the numbers together, one thing becomes clear: retirement savings don't look the same from state to state, and plenty of people are carrying far smaller balances than they hoped. Seeing how wide the gaps are can be a useful reality check, especially if you've been meaning to take a closer look at your own long-term plans.

The Survey of Consumer Finances data shows that roughly half of households have no retirement savings at all. It's a reminder that the goal isn't perfection. It's progress. Even a few intentional tweaks today can help you check up on your retirement readiness and head into the future feeling more prepared.

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