Understanding Average Retirement Age Across America: A State-by-State Analysis

When do Americans actually retire? While the target retirement age hovers around 66 according to recent surveys, the reality tells a different story. Studies show that the average retirement age in the U.S. sits at 61, a significant shift from 57 just three decades ago. Yet this national figure masks tremendous variation depending on where you live. Your state’s cost of living, median income, and local economic conditions can dramatically change when you can realistically stop working.

This comprehensive breakdown reveals the realistic retirement age in every state, showing how your location directly impacts your retirement timeline. Understanding these differences can help you set more accurate financial goals and retirement expectations.

Why Average Retirement Age Varies So Dramatically

The average retirement age differs significantly across states because of one fundamental factor: cost of living. A million-dollar savings target in Hawaii looks vastly different from the same amount in Kansas, where living expenses are considerably lower.

GOBankingRates analyzed median income by age across all states using Census Bureau data, then calculated how long workers would need to save before reaching their state’s target retirement nest egg. The methodology assumes workers save 20% of income starting at age 22, following a disciplined 50/30/20 budget allocation (50% necessities, 30% discretionary, 20% savings). Of that savings, 14% goes into a regular savings account while 6% goes into a 401(k) with employer match.

This approach reveals something striking: your retirement timeline isn’t just about how much you earn, but how much you need to spend.

States Where You Can Retire Early: 50s and Early 60s

The most favorable retirement ages cluster in lower-cost states across the Midwest and South. Workers in Kansas, Illinois, and Iowa can realistically retire in their early 50s—around ages 52-53. Colorado, Georgia, Idaho, Oklahoma, Texas, and Wyoming offer retirement opportunities by the mid-50s (ages 55-56).

In this group, required savings range from $778,581 in Oklahoma to $1,145,885 in Colorado. These states combine reasonable incomes with substantially lower living costs than coastal alternatives.

States like Alabama and North Dakota, while requiring slightly higher savings targets ($818,555 and $974,978 respectively), still offer retirement potential by age 58. South Carolina and North Carolina allow retirement at 59, with savings targets around $926,313 and $950,646.

Mid-Range Retirement Ages: Late 50s to Mid-60s

A larger group of states fall into the 60-65 retirement age bracket. These include Arizona (60), Louisiana (60), Maryland (59), and Connecticut (61). These states require savings targets between $1 million and $1.5 million.

The late 50s and early 60s retirement window opens in states like Michigan (57), Pennsylvania (57), Tennessee (57), and Wisconsin (57), where working just a few extra years from typical career start allows workers to accumulate sufficient retirement funds.

Delayed Retirement Scenarios: Late 60s and Beyond

Higher-cost states require workers to continue longer. Massachusetts and New York demand retirement ages of 68, with savings targets exceeding $1.6 million. Massachusetts workers need $1,889,184 saved, while New Yorkers face a $1,625,003 target.

California pushes retirement to age 66 with a $1.678 million savings requirement. Alaska and West Virginia extend to age 63, while states like Maine and Florida require age 63 targets as well.

Hawaii represents an extreme case, where the average retirement age extends beyond 75 due to its exceptionally high cost of living. Residents need over $2.4 million saved to support retirement expenses, compared to states where $800,000-$900,000 suffices.

How to Calculate Your Personal Retirement Age

The critical variable is your savings rate. The analysis assumes you begin working at 22 and consistently allocate 20% of income to retirement savings. Anyone following this disciplined approach can benchmark their situation against their state’s figure.

Your actual retirement age depends on:

Income Level: Workers earning above median income in their state accumulate savings faster. Similarly, below-median earners will need to work longer than their state’s average.

Lifestyle and Spending: The 50/30/20 rule provides a framework, but individual spending patterns matter enormously. Keeping discretionary spending below 30% accelerates retirement timelines.

Investment Returns: The calculation assumes 5% average annual returns on 401(k) investments. Market conditions and your personal investment strategy will influence actual outcomes.

State Changes: Relocating to a lower-cost state can dramatically accelerate retirement timing. A worker approaching retirement might achieve their goal years sooner by moving.

The 4% Withdrawal Strategy

Underlying all these calculations is the established 4% withdrawal rule. This guideline suggests you can safely withdraw 4% of your retirement portfolio annually without depleting savings over a 30-year retirement. This means your required savings target equals 25 times your annual retirement expenses.

State-specific savings targets reflect each state’s actual cost of living. Adjust the numbers if you expect different spending patterns during retirement.

What Social Security Changes This Picture

The analysis incorporates Social Security benefits expected at age 62 or full retirement age (67 for those born after 1960). Having Social Security income reduces the amount you need saved before claiming it. However, delaying Social Security increases monthly benefits significantly—by roughly 8% per year between ages 62 and 70.

This creates flexibility: you might retire at your state’s calculated age before Social Security kicks in, then supplement with benefits later, or work longer to maximize your Social Security amount.

Planning Your Actual Retirement

Understanding the average retirement age in your state provides a realistic benchmark, but individual circumstances vary. High-income earners can typically retire earlier than their state’s average. Those with lower incomes will likely need to work longer.

Consider these factors as you plan:

• Track your actual savings rate against the 20% benchmark
• Monitor whether your state’s cost of living will remain your permanent residence
• Evaluate your investment performance versus the assumed 5% returns
• Plan for healthcare costs, which spike in the early retirement years before Medicare eligibility
• Build in buffer for unexpected emergencies that may impact savings

The data shows clearly that strategic geographic choices, consistent saving discipline, and realistic income expectations can position you for retirement timing that aligns with your goals. While the average retirement age nationally sits at 61, your actual retirement date depends heavily on where you live and how systematically you’ve saved.

Data Note: This analysis is based on 2023 Census Bureau income data, 2021 Consumer Expenditure Survey figures, and cost of living indices current as of that period. Individual retirement timing will vary based on personal income, spending habits, investment performance, and Social Security claiming strategies.