The average retirement income varies widely across the U.S. In the state with the highest retirement income, the average retired household brings in more than twice as much as retirees in the state with the lowest retirement income. Differences stem from local variations in wages and salaries, cost of living, tax rules, the incidence of pension plans and other factors. Knowing what the average retirement income is in your state can provide helpful context when evaluating your own retirement readiness. And knowing how other states stack up can help you decide where to retire.
Consider working with a financial advisor to develop a retirement income plan based on your needs and assets.
Retirement Income Varies Widely By State
The average household retirement income in the United States is $27,617, according to an analysis by Wisevoter of data from the U.S. Census Bureau’s American Community Survey. However, depending on where you live, your local average may be much higher or lower.
When broken down by individual states, the averages range from a low of $20,542 in Indiana to a high of $43,080 in the District of Columbia. Retirees in the District of Columbia bring in significantly more than those in the second-ranked state, Alaska, with $36,023.
The District of Columbia likely stands out in this ranking partly because it’s a high-cost urban area. It also has many well-educated high-income earners, including retired government employees with generous government pensions.
In general, Northeast and West Coast states have higher incomes. The Southern and Midwestern states tend to lag behind when it comes to the average retirement income.
Here’s a breakdown of average retirement income by state:
| State | Average Retirement Income |
| Alabama | $24,896 |
| Alaska | $36,023 |
| Arizona | $28,725 |
| Arkansas | $21,967 |
| California | $34,737 |
| Colorado | $32,379 |
| Connecticut | $32,052 |
| Delaware | $31,283 |
| District of Columbia | $43,080 |
| Florida | $30,158 |
| Georgia | $27,961 |
| Hawaii | $32,294 |
| Idaho | $24,752 |
| Illinois | $31,223 |
| Indiana | $20,542 |
| Iowa | $22,308 |
| Kansas | $23,294 |
| Kentucky | $24,419 |
| Louisiana | $26,512 |
| Maine | $25,545 |
| Maryland | $35,732 |
| Massachusetts | $31,198 |
| Michigan | $24,389 |
| Minnesota | $26,385 |
| Mississippi | $23,347 |
| Missouri | $24,125 |
| Montana | $25,463 |
| Nebraska | $23,821 |
| Nevada | $31,171 |
| New Hampshire | $26,395 |
| New Jersey | $30,660 |
| New Mexico | $29,707 |
| New York | $30,326 |
| North Carolina | $25,324 |
| North Dakota | $23,347 |
| Ohio | $26,316 |
| Oklahoma | $23,963 |
| Oregon | $28,565 |
| Pennsylvania | $24,392 |
| Rhode Island | $27,118 |
| South Carolina | $26,227 |
| South Dakota | $24,020 |
| Tennessee | $23,715 |
| Texas | $27,471 |
| Utah | $28,632 |
| Vermont | $24,870 |
| Virginia | $35,306 |
| Washington | $29,351 |
| West Virginia | $21,118 |
| Wisconsin | $25,378 |
| Wyoming | $26,465 |
Using Average Retirement Income Figures in Your Plan
State-level retirement income averages can guide retirement planning. Here are three common ways you could use these figures if you’re planning for retirement:
- As a benchmark to evaluate if your savings are on track. Comparing your expected retirement income to the average in your state gives you a sense of how you measure up. This could prompt you to increase retirement contributions if you fall short.
- To understand how retirement expenses may differ by location. The wide variation in average incomes shows living costs and taxes vary greatly in retirement depending on where you live. This could influence decisions about where to retire.
- To estimate ranges for budgeting purposes. The state averages provide a ballpark estimate of retirement income ranges to consider when planning monthly budgets in retirement. This can help you set savings goals tailored to your state.
Limitations of Planning Based on Averages
Averages offer helpful context, but your personal situation likely matters more. Some retirees in each state earn far above or below the average, and you might be one of them.
Your expected costs, taxes, and lifestyle in retirement may differ from your state’s average. In that case, you would need more than the average income to retire comfortably. The averages give useful perspective. However, your specific retirement readiness depends on your own income, assets, expenses and retirement timeline.
Cities Where Retirement Income Is Highest
Retirement income can vary significantly across different cities in the United States, influenced by factors such as local economies, cost of living, and the prevalence of employer-sponsored retirement plans. According to a 2024 SmartAsset study, several cities stand out for their notably high average retirement incomes.
Arlington, Virginia, tops the list with retirees receiving an average total income of $90,140. This figure includes Social Security benefits averaging $26,460 and retirement income from other sources averaging $63,680.
Cambridge, Massachusetts, follows with a total average retirement income of $82,979, which includes $25,665 from Social Security and $57,314 from other retirement savings. Sunnyvale, California, ranks third, where retirees have an average total income of $79,442, including $25,327 from Social Security and $54,115 from additional retirement funds.
Bottom Line
When it comes to what is the average retirement income, state averages vary widely, likely due to differences in costs, wages, taxes, pensions and other factors. Information about averages can guide savings plans and suggest locations to retire. Every retirement is unique, however. Timing, income, expenses and sources of retirement income all determine total retirement income. Even with the same savings, different retirement ages or pension benefits can result in very different incomes.
Financial Planning Tips
- Have a financial advisor run projections to estimate your potential retirement income and shortfalls. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Use SmartAsset’s cost of living calculator to see how much you would need to earn to have the same standard of living in another city.
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