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Thanks to the company Personal Capital, we now know in which states workers do not save as much money for retirement and some of the reasons.
In any part of the world, but especially in the United States, the region where you live has a significant impact on your purchasing power, your personal finances and your savings. When it comes to retirement, this can define whether or not it is a worthy or larger retirement. A study solved the question and now we know which are the states with the highest and worst retirement savings.
Personal Capital, the financial advice, budgeting and investment app company, analyzed the average retirement savings of its 2.8 million users, to discover the savings trend in certain regions of the US, for example, the coastal states. This one seems to save more for their retirement years than those on the West Coast. 4 of the 5 states that top the list for retirement savings are in the Eastern part of the country.
It should be noted that the ability to save for retirement depends not only on the intentions of the worker to achieve their retirement goals, but also on the various economic factors that are affected by the area in which they live, as is their capacity. of income, the median wage in the state you live in, the tax burdens you must be responsible for, and the local cost and style of living.
These are the main results:
The 5 states with the highest retirement balances
According to data from Personal Capital for 2021, the best positioned states in terms of retirement savings are:
- Connecticut – Median retirement savings of $523,568.
- New Hampshire : $494,562.
- New Jersey : $489,664.
- Alaska : $489,070.
- Virginia : $468,579.
According to a 2020 Statista report, these five states with the highest retirement balances also share one of the highest proportions of millionaire households per capita in the country, which no doubt helps boost the overall average of your savings for retirement. retirement. New Jersey ranks highest with 9.76% of households having more than $1 million in assets.
Alaska is the only western state in the top five list. Along with New Hampshire, it is one of the most tax-friendly states in the US.
The 5 states with the lowest retirement balances
According to data from Personal Capital for 2021, the worst positioned states in terms of retirement savings are:
- Utah : Median retirement savings of $300,392.
- North Dakota : $310,766.
- Washington DC : $325,671.
- Oklahoma : $340,389.
- Mississippi : $340,894.
Oklahoma and Mississippi share not only this position on the list of the worst states for retirement savings, but also the lowest median wages in the country, making establishing a decent retirement difficult for many families in those places.
Personal Capital is an option to track your investments and budget for your retirement. The app has a free retirement planning tool, where you can enter your retirement goals like what age you plan to retire and when you want to start taking Social Security. This tool will analyze your current savings to see if you are on track to achieve your goals.