The 10 Best and Worst States for Retirement Readiness — The Differences Are Worth $180K and More

Vance Cariaga

Tue, Jun 3, 2025, 5:01 AM 3 min read

The rules of successful retirement planning are the same no matter where you live. You’ll want to start saving early and contribute to your retirement fund regularly, throughout your working life.

But your location can still make a difference when it comes to retirement readiness — to the tune of $180,000 or more in savings, according to a recent study from Western & Southern Financial Group.

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The study analyzed key financial, economic and lifestyle factors that influence your ability to maintain a secure and comfortable retirement. It then ranked all 50 states in terms of which ones offer the strongest financial security, economic opportunities, affordability and quality of life for retirees.

GOBankingRates listed the best and worst states for retirement readiness based on the study’s rankings. See if your state makes an appearance.

Among its findings: Connecticut ranked first in average 401(k) plan balances for seniors, at $546,000. Utah ranked last at $315,000 — a difference of $231,000. Seniors in Connecticut also amassed at least $180,000 more in savings than those in several other states, including North Dakota ($320,000 average), Mississippi ($348,000), Oklahoma ($361,000) and Arkansas ($364,000).

Of course, 401(k) plan balances only tell part of the story when it comes to retirement readiness. Seniors in Connecticut amass more retirement savings mainly because they enjoy higher incomes. But since they also face much higher living costs, they need more money to live (and retire) comfortably.

In ranking the states, Western & Southern also looked at factors such as cost of living, income, home ownership, life expectancy, senior employment rates and quality of life. Once it gathered that data, it assigned an overall score to each state.

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Seven of the 10 best states for retirement readiness are located in the Northeast — despite generally low rankings in affordability. That was offset by high scores in retirement savings, life expectancy and earnings/employment.

Conversely, some of the lower ranking states overall scored high in affordability but low in retirement savings, life expectancy and earnings/employment.

Based on those results, one conclusion you can draw is that it’s important to build a sufficient nest egg and have access to outside income sources to ensure the most comfortable retirement.