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The average retirement income varies widely across the U.S. In the state with the highest retirement income, Alaska, the average retired household brings in almost twice as much as retirees in Indiana, 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.
A financial advisor can help you 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 of data from the U.S. Census Bureau’s American Community Survey. However, depending on where retirees live, the local average may be much higher or lower.
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 Alaska, who earn $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 retirement income by states that also includes the District of Columbia:
| 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 to use these figures for your research:
- 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 2025 SmartAsset study , several cities stand out for their notably high average retirement incomes.
Carlsbad, California, tops the list with retirees receiving an average total income of $85,442. This figure includes Social Security benefits averaging $28,757 and retirement income from other sources averaging $56,685.
Bellevue, Washington, follows with a total average retirement income of $85,061, which includes $29,715 from Social Security and $55,346from other retirement savings. Naperville, Illinois, ranks third, where retirees have an average total income of $85,055, including $30,921 from Social Security and $54,134 from additional retirement funds.
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About This Calculator
To estimate how much you may need to save for retirement, we begin by calculating how much you're expected to spend over the course of your retirement. This includes estimating the income you'll need based on your lifestyle preferences, then factoring in how many years you may spend in retirement. We assume a lifespan of 95 by default, though you can adjust it after your calculation is complete.
Once we have a clearer view of your total retirement needs, we use our models to evaluate your existing and future resources. This includes estimating retirement income from Social Security and the impact of current retirement plans, pensions and other accounts. For additional inputs and a comprehensive retirement plan, please see our full Retirement Calculator.
Assumptions
Lifespan: We assume you will live to 95. We stop the analysis there, regardless of your spouse's age.
Retirement accounts: We automatically distribute your future savings optimally among different retirement accounts. We assume that the IRS contribution limits for your retirement accounts increase with inflation.
Social Security: We estimate your Social Security income using your stated annual income and assuming you have worked and paid Social Security taxes for 35 years prior to retirement. Our estimate is sensitive to penalties for early retirement and credits for delaying claiming Social Security benefits.
Return on savings: We assume the percentage return on your savings differs by whether you're pre- or post-retirement and by account type, with a distinction between investment accounts and savings accounts. This assumption does not account for market volatility or investment losses and assumes positive growth over time. All investing involves risk, including the possible loss of principal.
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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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