When it comes to
retirement savings
, residents of one state are at the forefront: Massachusetts.
According to data, the typical household retirement savings balance in Massachusetts stands at $448,500.
October study by DepositAccounts
That represents the highest figure among all the states analyzed in the study.
A personal finance website examined information from the U.S. Census Bureau’s 2022 Survey of Income and Program Participation, which is currently the most recent source, to calculate how much money families across different states had set aside for their retirement years. This figure encompasses funds held within various accounts such as 401(k) plans, Individual Retirement Accounts (IRAs), Keogh schemes, and Thrift Savings Plans.
Several factors could account for why Massachusetts residents boast the highest average balances. With an annual average salary of $80,330, workers in Massachusetts lead the nation in terms of earnings, as reported.
recent analysis by Empower
.
In addition, Massachusetts initiated the first statewide plan aimed at assisting non-corporate employees in increasing their retirement savings. The program was rolled out by the state in 2017.
CORE program
This initiative assists smaller nonprofit groups in providing 401(k) benefits to their staff members. By early May, more than 200 entities had joined the program according to data from the state’s official site.
In contrast, residents of Louisiana and Mississippi have the smallest average household retirement savings at $128,900 and $131,500, respectively. Additionally, in Florida, the situation is similar.
popular retirement destination
, ranks 19
th
with an average savings of $287,200.
However, keep in mind that although averages offer an intriguing glimpse into retirement statistics, they do not necessarily reveal the complete picture. A handful of unusually high or low account balances can distort these figures.
The following figures represent the typical savings for retirement per household across various states as reported by DepositAccounts. In 2022, information was not provided for Alaska, Delaware, the District of Columbia, New Hampshire, North Dakota, Rhode Island, South Dakota, Vermont, and Wyoming.
-
Alabama:
$165,500 -
Arizona :
$365,300 -
Arkansas:
$143,600 -
California:
$301,500 -
Colorado:
$321,200 -
Connecticut:
$351,800 -
Florida:
$287,200 -
Georgia :
$214,500 -
Hawaii:
$433,700 -
Idaho:
$190,600 -
Illinois:
$298,000 -
Indiana:
$190,700 -
Iowa:
$228,900 -
Kansas
$316,600 -
Kentucky:
$278,800 -
Louisiana:
$128,900 -
Maryland:
$368,700 -
Massachusetts:
$448,500 -
Michigan:
$297,900 -
Minnesota:
$368,400 -
Mississippi:
$131,500 -
Missouri:
$203,800 -
Montana:
$270,900 -
Nebraska:
$251,100 -
Nevada:
$286,600 -
New Jersey:
$376,700 -
New Mexico:
$169,200 -
New York:
$275,700 -
North Carolina:
$294,400 -
Ohio:
$315,900 -
Oklahoma:
$222,900 -
Oregon:
$299,300 -
Pennsylvania:
$255,500 -
South Carolina:
$274,500 -
Tennessee:
$201,200 -
Texas:
$278,600 -
Utah:
$270,800 -
Virginia:
$307,600 -
Washington:
$330,900 -
West Virginia:
$174,200 -
Wisconsin:
$310,700
Concentrate on your savings rate to achieve your retirement objectives.
Remember, reaching your
retirement savings goal
is more of a marathon than a sprint. While it can be tempting to focus solely on growing your retirement account balance, there’s another number you should keep in mind: your retirement savings rate.
Your
retirement savings rate
Is the portion of your yearly earnings that you set aside for later.
Fidelity Investments recommends
a saving ratio of 15%, including any employer contribution.
Even though 15% might appear steep, you don’t have to achieve this percentage instantly. A method to attain it is by setting up automatic increments of your retirement savings by 1% annually until you meet your desired saving ratio.
“Savings goals for retirement might appear akin to scaling a tall mountain; however, this ascent does not necessarily need to be as arduous as it initially seems,” says Ann Dowd, who serves as the vice president at Fidelity.
mentioned in a July report
Taking small steps today may lead to significant progress tomorrow.
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