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How retirement savings vary by state, shaped by cost of living
The U.S. Census Bureau data cited uses median retirement balances, which can differ from averages due to a small number of high-account households pulling results upward.
Yahoo Finance highlights that Americans’ retirement account balances vary widely by where they live, citing the latest U.S. Census Bureau data presented through a state-by-state map.
The article notes that the figures are based on median savings to avoid distortion from a limited number of households with multimillion-dollar accounts, explaining that the median better reflects a typical household by showing the midpoint in savings within each state.
It also links differences in savings to cost of living and taxes, saying higher expenses in states such as California, Hawaii, and New York can require a larger retirement nest egg, even as wages in more expensive areas tend to be higher.
Using cost-of-living comparisons, Yahoo Finance points to California’s cost of living being 10.7% above the national average, and adds that tax treatment can affect how much workers save during working years and how withdrawals are handled in retirement.