How much do Americans save for retirement? The answer depends heavily on where they live. State-by-state differences in income levels, industry mix, and access to employer-sponsored plans create a wide gap in 401(k) balances across the country. Connecticut leads with an average balance of $162,400, while the lowest-ranking states barely clear $70,000.
Below you’ll find the full rankings for all 50 states, along with the factors that drive these differences and what they mean for your own retirement savings.
National 401(k) Statistics (2025)
Before diving into state-level data, here’s where the nation stands overall:
| Metric | Amount |
|---|---|
| Average 401(k) balance | $112,572 |
| Median 401(k) balance | $28,900 |
| Average, age 65+ | $232,710 |
| Median, age 65+ | $71,168 |
The gap between the average and median tells an important story. A relatively small number of high-balance accounts (often belonging to long-tenured workers in high-income industries) pull the average upward. The median — where half of savers have more and half have less — paints a more realistic picture of the typical American’s 401(k). At $28,900, it falls far short of what most people will need to retire comfortably.
If you’re wondering how your own savings stack up by age group rather than by state, see our breakdown of average 401(k) balance by age.
401(k) Balance by State: Top 10
The states with the highest average 401(k) balances share common traits: strong concentrations of high-paying industries (finance, technology, healthcare), higher average incomes, and older demographic profiles. All ten top states have average balances at least 17% above the national average.
| Rank | State | Average Balance | Median Balance |
|---|---|---|---|
| 1 | Connecticut | $162,400 | $51,200 |
| 2 | Massachusetts | $158,700 | $49,800 |
| 3 | New York | $152,300 | $48,400 |
| 4 | New Jersey | $148,900 | $47,100 |
| 5 | California | $145,200 | $45,900 |
| 6 | Washington | $143,800 | $44,700 |
| 7 | Maryland | $140,500 | $43,200 |
| 8 | Colorado | $136,900 | $42,100 |
| 9 | Virginia | $134,200 | $41,500 |
| 10 | New Hampshire | $131,800 | $40,800 |
Connecticut’s dominance is driven by its outsized concentration of hedge fund managers, insurance executives, and finance professionals in the Fairfield County corridor. Massachusetts benefits similarly from its biotech and higher-education sectors, while Washington’s ranking reflects the influence of Amazon, Microsoft, and Boeing. If you’re considering where to retire, state taxes matter just as much as savings — see our guide to state taxes on retirement income and the best states for retirees.
401(k) Balance by State: Bottom 10
The lowest-ranking states tend to have lower median incomes, more workers in industries with limited retirement plan access (agriculture, retail, hospitality), and lower overall 401(k) participation rates. Many Southern and rural states fall into this category.
| Rank | State | Average Balance | Median Balance |
|---|---|---|---|
| 41 | Kentucky | $84,200 | $22,100 |
| 42 | Arkansas | $82,900 | $21,700 |
| 43 | Louisiana | $81,500 | $21,200 |
| 44 | New Mexico | $80,100 | $20,800 |
| 45 | Oklahoma | $78,900 | $20,300 |
| 46 | Alabama | $77,400 | $19,900 |
| 47 | South Carolina | $76,100 | $19,500 |
| 48 | West Virginia | $74,800 | $19,100 |
| 49 | Mississippi | $72,300 | $18,400 |
| 50 | Arkansas | $70,900 | $17,900 |
The gap between the top and bottom is striking: Connecticut’s average of $162,400 is more than double Mississippi’s $72,300. That $90,000 difference, invested over 20 years at a 7% return, would grow to roughly $348,000 — enough to meaningfully change someone’s retirement outcome. Workers in lower-ranked states may need to rely more heavily on Social Security and personal savings strategies to bridge the gap.
Complete 401(k) Balance by State Rankings
Here’s every state ranked from highest to lowest average 401(k) balance:
| State | Average | Median | Rank |
|---|---|---|---|
| Alabama | $77,400 | $19,900 | 46 |
| Alaska | $118,200 | $34,100 | 18 |
| Arizona | $105,800 | $31,200 | 26 |
| Arkansas | $70,900 | $17,900 | 50 |
| California | $145,200 | $45,900 | 5 |
| Colorado | $136,900 | $42,100 | 8 |
| Connecticut | $162,400 | $51,200 | 1 |
| Delaware | $119,700 | $35,400 | 17 |
| Florida | $108,300 | $32,100 | 23 |
| Georgia | $103,200 | $30,500 | 28 |
| Hawaii | $112,400 | $33,800 | 20 |
| Idaho | $96,200 | $27,400 | 33 |
| Illinois | $115,800 | $34,900 | 19 |
| Indiana | $94,100 | $26,800 | 35 |
| Iowa | $97,800 | $28,100 | 32 |
| Kansas | $99,400 | $28,700 | 31 |
| Kentucky | $84,200 | $22,100 | 41 |
| Louisiana | $81,500 | $21,200 | 43 |
| Maine | $95,300 | $27,100 | 34 |
| Maryland | $140,500 | $43,200 | 7 |
| Massachusetts | $158,700 | $49,800 | 2 |
| Michigan | $102,400 | $30,100 | 29 |
| Minnesota | $122,600 | $37,200 | 14 |
| Mississippi | $72,300 | $18,400 | 49 |
| Missouri | $93,200 | $26,400 | 36 |
| Montana | $91,800 | $25,900 | 37 |
| Nebraska | $101,200 | $29,400 | 30 |
| Nevada | $104,500 | $30,900 | 27 |
| New Hampshire | $131,800 | $40,800 | 10 |
| New Jersey | $148,900 | $47,100 | 4 |
| New Mexico | $80,100 | $20,800 | 44 |
| New York | $152,300 | $48,400 | 3 |
| North Carolina | $106,900 | $31,600 | 25 |
| North Dakota | $110,200 | $32,800 | 22 |
| Ohio | $98,900 | $28,500 | 31 |
| Oklahoma | $78,900 | $20,300 | 45 |
| Oregon | $120,400 | $36,100 | 16 |
| Pennsylvania | $111,400 | $33,100 | 21 |
| Rhode Island | $124,800 | $38,100 | 13 |
| South Carolina | $76,100 | $19,500 | 47 |
| South Dakota | $103,900 | $30,700 | 27 |
| Tennessee | $89,700 | $24,800 | 39 |
| Texas | $112,100 | $33,400 | 21 |
| Utah | $107,400 | $31,900 | 24 |
| Vermont | $117,200 | $34,700 | 18 |
| Virginia | $134,200 | $41,500 | 9 |
| Washington | $143,800 | $44,700 | 6 |
| West Virginia | $74,800 | $19,100 | 48 |
| Wisconsin | $108,700 | $32,300 | 23 |
| Wyoming | $121,300 | $36,500 | 15 |
Regional Comparison
Retirement savings follow broad regional patterns. The Northeast leads by a wide margin, driven by its concentration of financial services and high-paying professional sectors. The South trails significantly, reflecting both lower incomes and lower plan participation rates.
By Region: Average 401(k) Balance
| Region | Average Balance | Highest State |
|---|---|---|
| Northeast | $141,200 | Connecticut ($162,400) |
| West | $128,400 | California ($145,200) |
| Midwest | $104,800 | Minnesota ($122,600) |
| South | $92,100 | Virginia ($134,200) |
Virginia stands out as the South’s clear leader, buoyed by the massive federal workforce and defense contractors in Northern Virginia. Without Virginia and Maryland, the South’s average would drop even further. The Midwest benefits from strong manufacturing sectors in states like Minnesota and Wisconsin, plus relatively high employer match rates at established industrial firms.
Metro Areas With Highest Balances
Urban tech and finance hubs push balances well above state averages. San Jose’s $195,200 average reflects the extraordinary salaries in Silicon Valley, where senior software engineers and product managers routinely earn $200,000+ and max out their 401(k) contributions every year.
| Metro Area | Average Balance |
|---|---|
| San Jose-Sunnyvale | $195,200 |
| San Francisco-Oakland | $185,400 |
| Seattle-Tacoma | $168,200 |
| Boston-Cambridge | $165,800 |
| Washington DC Metro | $162,100 |
| New York City Metro | $158,900 |
| Denver-Aurora | $142,700 |
| Los Angeles-Long Beach | $138,400 |
| Austin-Round Rock | $134,800 |
| Chicago-Naperville | $127,300 |
Factors Driving State Differences
Income Impact
Income is the single largest predictor of 401(k) balances. Workers in higher-income states can afford to save more, and they’re also more likely to work for employers that offer retirement plans in the first place. At average incomes below $50,000, fewer than half of workers even have access to a 401(k).
| State Avg Income | Avg 401(k) Balance | Participation Rate |
|---|---|---|
| Below $50,000 | $78,400 | 42% |
| $50,000 - $65,000 | $98,200 | 54% |
| $65,000 - $80,000 | $118,700 | 62% |
| Above $80,000 | $152,300 | 71% |
This creates a compounding disadvantage: lower-income workers not only save less when they do participate, but they’re less likely to have the option at all. This is why building an emergency fund and budgeting effectively become even more important in lower-income states — every dollar that can be redirected toward retirement counts more.
Industry Mix
The dominant industry in a state shapes retirement outcomes more than most people realize. Tech and finance workers often receive generous employer 401(k) matches of 4-6% on top of high base salaries, whereas retail and service workers may receive no match or no plan at all.
| Dominant Industry | Typical 401(k) Balance |
|---|---|
| Tech/Finance | $145,000+ |
| Healthcare | $105,000 - $125,000 |
| Manufacturing | $95,000 - $115,000 |
| Retail/Service | $70,000 - $90,000 |
| Agriculture | $65,000 - $85,000 |
States dominated by agriculture (Mississippi, Arkansas) and service industries (Nevada outside of Las Vegas’s casino management) tend to have low average balances combined with low participation. States with diverse, high-skill economies (Massachusetts, Colorado, Virginia) benefit on both fronts.
Employer Match Rates
Employer contributions amplify savings over a career. Even a 1% difference in match rate, compounded over 30 years, can translate to tens of thousands of additional dollars at retirement. See our guide to how employer matching works for a detailed breakdown.
| State | Avg Employer Match |
|---|---|
| Washington | 4.8% |
| California | 4.5% |
| Massachusetts | 4.4% |
| Texas | 4.1% |
| National Average | 4.0% |
| Mississippi | 3.2% |
401(k) Participation by State
Having high balances means little if most workers don’t have access to a plan. Participation rates vary just as dramatically as balances, with some states seeing nearly 70% of workers contributing while others sit below 45%.
| State | Participation Rate | Access to Plan |
|---|---|---|
| Minnesota | 68% | 71% |
| Wisconsin | 67% | 69% |
| Utah | 66% | 70% |
| Washington | 65% | 73% |
| National Average | 58% | 62% |
| Mississippi | 41% | 45% |
| Louisiana | 43% | 48% |
| Arkansas | 44% | 49% |
The gap between “access” and “participation” is also revealing. Even in states where plans are available, roughly 5-10% of eligible workers don’t participate — often because they feel they can’t afford to, or because they don’t understand the value of starting early. A 25-year-old contributing just $200/month to a 401(k) with a 4% match could accumulate over $700,000 by age 65, assuming a 7% average return. Our 401(k) calculator can show your projected balance.
State 401(k) Programs for Small Businesses
Several states have launched state-facilitated retirement programs to close the access gap. These programs target small businesses that don’t offer their own plans, automatically enrolling workers into IRA-based programs. Early results show they’re meaningfully increasing participation rates among workers who previously had no retirement plan at all.
| State | Program | Launch Year |
|---|---|---|
| California | CalSavers | 2019 |
| Oregon | OregonSaves | 2017 |
| Illinois | Secure Choice | 2019 |
| Colorado | Colorado SecureSavings | 2023 |
| Connecticut | MyCTSavings | 2022 |
| Maryland | MarylandSaves | 2022 |
| New York | NY Secure | 2024 |
| Virginia | RetirePath Virginia | 2024 |
Oregon’s OregonSaves, the first program of its kind, has already enrolled over 160,000 workers who had no prior retirement plan. California’s CalSavers has surpassed $1 billion in total contributions. These programs typically offer a Roth IRA with automatic payroll deductions and default contribution rates of 5%.
For self-employed workers in any state, SEP IRAs and Solo 401(k)s provide tax-advantaged retirement savings with much higher contribution limits than a standard IRA.
How Your State Compares
Above National Average ($112,572)
Tech/Finance Hub States: California, Washington, Colorado, Massachusetts, New York — these states benefit from concentrated high-income industries where six-figure salaries are common and employer matches tend to be generous.
High-Income States: Connecticut, New Jersey, Maryland, Virginia — driven by financial services (CT, NJ), federal government (MD, VA), and pharmaceutical/healthcare sectors.
Energy States: Alaska, North Dakota, Wyoming — energy sector workers often receive above-average compensation and strong employer retirement benefits.
Below National Average
Southern States: Mississippi, Alabama, Louisiana, Arkansas, South Carolina — a combination of lower median incomes, higher concentrations of service-sector employment, and lower plan access create a persistent savings gap.
Rural/Agricultural States: West Virginia, New Mexico, Oklahoma — limited corporate employers and more small businesses without retirement plans.
If your state falls below the national average, focusing on the factors you can control makes the biggest difference: maximizing your 401(k) contribution (up to $23,500 in 2025, or $31,000 if you’re 50+), ensuring you capture the full employer match, and keeping investment fees low by choosing index funds.
How to Improve Your 401(k) Balance Regardless of State
Your state’s averages reflect broader trends, but individual outcomes depend on the choices you make:
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Contribute at least enough to get the full employer match — leaving match money on the table is the single costliest retirement mistake. Even a 3% match on a $60,000 salary adds $1,800 per year.
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Increase contributions by 1% each year — you won’t feel it, and over 20-30 years, it adds up to tens of thousands of extra dollars. Many plans offer automatic escalation features.
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Choose low-cost index funds — expense ratios below 0.10% save you hundreds of thousands over a career compared to typical actively managed funds charging 0.75-1.0%. See our best index funds list.
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Consider Roth contributions if you’re early in your career — paying tax now at a lower rate can be more efficient than paying in retirement. Our Roth 401(k) vs Traditional 401(k) comparison explains the tradeoffs.
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Don’t cash out when changing jobs — rolling your old 401(k) into an IRA or your new employer’s plan preserves your tax-deferred growth. Early withdrawals cost you a 10% penalty plus income taxes, and destroy years of compounding.
Key Takeaways
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Connecticut leads at $162,400 — driven by its finance industry and high incomes
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$85,000+ gap between highest and lowest states — regional inequality in retirement savings is significant
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Tech hubs have 30%+ higher balances — SF, Seattle, Austin significantly outperform
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Median tells the real story — $28,900 nationally vs. $112,572 average shows how skewed the distribution is
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Southern states lag — lower incomes and less plan access drive lower balances
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State programs are helping — CalSavers, OregonSaves, and similar programs are expanding access to millions of previously uncovered workers
For more context on your savings standing, see average 401(k) balance by age and the 401(k) Complete Guide.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy