Average Retirement Income By State

The intricacies of retirement income across the United States are as diverse as the fifty states themselves. Influenced variably by factors such as local wages and salaries, cost of living, tax rules, and the presence of pension plans, each state offers a unique financial landscape for its retired populace. Understanding these nuances is a critical step in both retirement preparation and selecting the optimal state to spend your golden years. It is crucial to dispel the broad strokes with which retirement income is often painted and delve into the detail of state-specific averages. 

Based on the data, we can glean several key insights:

• Washington leads the nation for retirement income with an average of $68,220 per year. This trend hints at possibly higher local wages, numerous pension plans, or an elevated cost of living.
• In contrast, Louisiana's retirees have the lowest average income at $43,352 per year, less than two-thirds of what retirees earn in Washington, suggesting variations in factors like cost of living and tax rules.
• Coastal states such as New York, Maryland, Virginia, California, and Massachusetts make it to the top 15 ranking for retirement income while traditionally popular retirement destinations like Arizona and Florida find themselves towards the middle and bottom end of the spectrum.
• A significant disparity exists in retirement income even among neighboring states. For example, retirees in Maryland enjoy an average income of $64,313 per year, while their peers in Pennsylvania have an annual income averaging $51,913.
• Inter-regional variances are also evident, indicating potential geographical trends. For instance, six of the top ten states with the highest retirement income are in the East and the South, while the Midwest and Central regions dominate the lower end of the spectrum.