Understanding the importance of saving money for retirement is crucial for ensuring financial security in later years. However, this necessity can vary significantly from state to state across the United States due to differences in the cost of living, tax rates, income levels, and other factors. To delve into this complex landscape of retirement savings, Scholaroo’s data team embarked on a comprehensive analysis.
By exploring the average retirement balance per account holder across all 50 states, our team sought to uncover valuable insights into retirement financial behaviors nationwide. This exploration not only sheds light on the current state of retirement preparedness but also highlights the disparities and challenges that individuals face in different regions. Whether it’s navigating higher living costs in urban areas or optimizing retirement plans in states with favorable tax environments, understanding these variations is essential for developing personalized saving strategies.
To capture the nationwide panorama of retirement balances, our data team collected information on the average savings balance of individuals with retirement accounts. Through interactive tools like our map feature, users can hover over different states to explore the findings and gain a deeper understanding of how retirement savings differ across the country. This analysis serves as a valuable resource for individuals, financial advisors, and policymakers alike, empowering them to make informed decisions to secure a comfortable retirement.
What is the average retirement balance per retirement account in each state?
- The national average retirement account balance is $429,525;
- Connecticut boasts the highest average retirement balance among individuals with retirement accounts, standing 27% above the national average;
- Conversely, individuals in Utah possess 26.6% less than the national average.
This is how the retirement balance stacks up against the average balance within each generation
Millennials lag behind Generation X by up to 70.48% in retirement savings, highlighting a pressing need for financial planning. The difference is even higher, at 83%, when comparing Millennials with baby boomers, emphasizing the widening gap in retirement preparedness across generations.
Methodology
Scholaroo's data team collected and analyzed publicly available data on retirement accounts across the country.