When Can You Realistically Retire? Average Retirement Age by State Reveals Surprising Timelines

Question

Most Americans dream of retiring around age 66, according to recent surveys. However, the actual average retirement age by state tells a different story. In reality, people are retiring closer to age 61 on average—a significant shift from 1991 when the typical retirement age hovered around 57. While Americans born after 1960 qualify for full Social Security benefits at 67, or reduced benefits starting at 62, the question remains: when can you actually afford to stop working based on your location and savings rate?

The answer depends heavily on where you live. A comprehensive analysis of median income data across all 50 states reveals that your realistic retirement age varies dramatically—ranging from as early as age 52 to well into your 70s. The difference comes down to regional cost of living and earning potential, combined with disciplined savings habits.

How Much Do You Need to Save?

The first step to determining when you can retire involves calculating your state’s specific savings target. This figure depends on your local cost of living, healthcare expenses, and expected lifestyle after leaving the workforce. The calculation assumes you’ll withdraw 4% of your total savings annually to cover living expenses throughout retirement.

For context, states with lower costs of living have significantly lower savings targets. For example, some Midwestern states might require around $800,000-$900,000 in total savings, while high-cost states on the coasts can demand $1.6 million to $2.5 million or more. Hawaii stands as the extreme outlier, where retirees need over $2.4 million saved to maintain a comfortable lifestyle.

The Savings Strategy That Works

GOBankingRates analyzed what happens when workers apply a consistent approach to building retirement wealth. The study tracked individuals who:

Begin earning income at age 22
Follow the 50/30/20 budget rule: allocating 50% of income to necessities, 30% to discretionary wants, and 20% to savings
Deposit 14% of that savings into a regular savings account and 6% into a 401(k) retirement plan
Benefit from a typical employer match of 50% on contributions (up to 3% of salary)
Achieve an average annual investment return of 5% in their 401(k)

Under these realistic assumptions, the analysis calculated total accumulated savings at key life stages: ages 24, 34, 44, and from 58 to 74. Once an individual’s savings exceed their state’s retirement target, that becomes their realistic retirement age.

Retiring Early: States Where It’s Possible Before 60

Some Americans will discover they can leave the workforce earlier than they imagined. Kansas leads the nation with a realistic retirement age of 52, requiring approximately $808,000 in savings. Following closely are:

Illinois (age 53, $896,767 needed)
Iowa (age 53, $837,674 needed)
Nebraska (age 53, $884,601 needed)
Indiana (age 54, $849,840 needed)
Minnesota (age 54, $981,931 needed)
Utah (age 54, $1,074,046 needed)
South Dakota (age 55, $929,790 needed)
Wyoming (age 55, $895,029 needed)

These predominantly lower-cost states allow workers to achieve financial independence decades before traditional Social Security ages. Colorado, Georgia, Idaho, Oklahoma, Texas, and Virginia round out this category at age 56, each with savings targets between $778,000 and $1.1 million.

Mid-Range Retirement: Ages 60-65 Across America

The majority of states cluster in the 56-65 age range for realistic retirement. This group includes:

Ages 56-59: Michigan (57), Tennessee (57), New Jersey (57), Pennsylvania (57), Wisconsin (57), New Hampshire (58), Ohio (58), Washington (58), North Dakota (58), Alabama (58), Maryland (59), North Carolina (59), South Carolina (59)

Ages 60-65: Arizona (60), Louisiana (60), Connecticut (61), Delaware (61), Mississippi (61), Nevada (61), Rhode Island (61), Arkansas (62), Kentucky (62), New Mexico (62), Montana (62), Oregon (62), Vermont (62), Alaska (63), Florida (63), Maine (63), West Virginia (63), California (66)

These states represent the typical American experience, where following disciplined savings habits allows retirement between the ages of 56 and 66. Savings requirements in this range typically fall between $800,000 and $1.7 million, reflecting moderate cost-of-living indices.

Later Retirement Years: States Requiring Work Into Your Late 60s and Beyond

A smaller group of high-cost states requires workers to maintain employment longer to accumulate sufficient retirement savings. Massachusetts tops this category at age 68, needing $1.89 million in savings. New York follows at age 68, requiring $1.625 million.

Hawaii presents an extreme case, where even saving diligently from age 22 leaves most workers unable to reach their $2.485 million target by age 74—suggesting a realistic retirement age of 75-plus for those following standard savings patterns.

Your State’s Path to Retirement

The detailed breakdown by state shows considerable variation. Here’s how your location shapes your retirement timeline:

Alabama

Realistic retirement age: 58
Savings needed: $818,555
Total savings at 58: $839,485

Alaska

Realistic retirement age: 63
Savings needed: $1,487,698
Total savings at 63: $1,488,200

Arizona

Realistic retirement age: 60
Savings needed: $1,126,187
Total savings at 60: $1,140,377

Arkansas

Realistic retirement age: 62
Savings needed: $862,006
Total savings at 62: $891,863

California

Realistic retirement age: 66
Savings needed: $1,678,882
Total savings at 66: $1,687,854

Colorado

Realistic retirement age: 56
Savings needed: $1,105,331
Total savings at 56: $1,145,885

Connecticut

Realistic retirement age: 61
Savings needed: $1,317,371
Total savings at 61: $1,361,730

Delaware

Realistic retirement age: 61
Savings needed: $1,122,711
Total savings at 61: $1,155,329

Florida

Realistic retirement age: 63
Savings needed: $1,074,046
Total savings at 63: $1,095,684

Georgia

Realistic retirement age: 56
Savings needed: $827,246
Total savings at 56: $829,490

Hawaii

Realistic retirement age: 75-plus
Savings needed: $2,485,329
Total savings at 74: $2,333,542

Idaho

Realistic retirement age: 56
Savings needed: $1,018,429
Total savings at 56: $1,037,493

Illinois

Realistic retirement age: 53
Savings needed: $896,767
Total savings at 53: $927,403

Indiana

Realistic retirement age: 54
Savings needed: $849,840
Total savings at 54: $864,704

Iowa

Realistic retirement age: 53
Savings needed: $837,674
Total savings at 53: $847,550

Kansas

Realistic retirement age: 52
Savings needed: $808,127
Total savings at 52: $843,700

Kentucky

Realistic retirement age: 62
Savings needed: $936,742
Total savings at 62: $976,950

Louisiana

Realistic retirement age: 60
Savings needed: $914,147
Total savings at 60: $921,145

Maine

Realistic retirement age: 63
Savings needed: $1,291,300
Total savings at 63: $1,304,883

Maryland

Realistic retirement age: 59
Savings needed: $1,442,509
Total savings at 59: $1,500,015

Massachusetts

Realistic retirement age: 68
Savings needed: $1,889,184
Total savings at 68: $1,936,486

Michigan

Realistic retirement age: 57
Savings needed: $889,815
Total savings at 57: $909,639

Minnesota

Realistic retirement age: 54
Savings needed: $981,931
Total savings at 54: $990,991

Mississippi

Realistic retirement age: 61
Savings needed: $764,676
Total savings at 61: $784,444

Missouri

Realistic retirement age: 56
Savings needed: $835,936
Total savings at 56: $857,775

Montana

Realistic retirement age: 62
Savings needed: $1,108,807
Total savings at 62: $1,141,505

Nebraska

Realistic retirement age: 53
Savings needed: $884,601
Total savings at 53: $914,016

Nevada

Realistic retirement age: 61
Savings needed: $1,080,998
Total savings at 61: $1,082,212

New Hampshire

Realistic retirement age: 58
Savings needed: $1,305,205
Total savings at 58: $1,310,065

New Jersey

Realistic retirement age: 57
Savings needed: $1,240,897
Total savings at 57: $1,249,174

New Mexico

Realistic retirement age: 62
Savings needed: $921,099
Total savings at 62: $938,911

New York

Realistic retirement age: 68
Savings needed: $1,625,003
Total savings at 68: $1,631,225

North Carolina

Realistic retirement age: 59
Savings needed: $950,646
Total savings at 59: $969,234

North Dakota

Realistic retirement age: 58
Savings needed: $974,978
Total savings at 58: $1,015,746

Ohio

Realistic retirement age: 58
Savings needed: $884,601
Total savings at 58: $924,423

Oklahoma

Realistic retirement age: 56
Savings needed: $778,581
Total savings at 56: $810,593

Oregon

Realistic retirement age: 62
Savings needed: $1,393,844
Total savings at 62: $1,437,528

Pennsylvania

Realistic retirement age: 57
Savings needed: $994,097
Total savings at 57: $1,024,444

Rhode Island

Realistic retirement age: 61
Savings needed: $1,249,588
Total savings at 61: $1,261,212

South Carolina

Realistic retirement age: 59
Savings needed: $926,313
Total savings at 59: $963,855

South Dakota

Realistic retirement age: 55
Savings needed: $929,790
Total savings at 55: $952,724

Tennessee

Realistic retirement age: 57
Savings needed: $855,054
Total savings at 57: $877,886

Texas

Realistic retirement age: 56
Savings needed: $895,029
Total savings at 56: $909,165

Utah

Realistic retirement age: 54
Savings needed: $1,074,046
Total savings at 54: $1,079,790

Vermont

Realistic retirement age: 62
Savings needed: $1,301,729
Total savings at 62: $1,336,090

Virginia

Realistic retirement age: 56
Savings needed: $1,074,046
Total savings at 56: $1,082,679

Washington

Realistic retirement age: 58
Savings needed: $1,272,182
Total savings at 58: $1,292,473

West Virginia

Realistic retirement age: 63
Savings needed: $851,578
Total savings at 63: $859,100

Wisconsin

Realistic retirement age: 57
Savings needed: $947,170
Total savings at 57: $986,585

Wyoming

Realistic retirement age: 55
Savings needed: $895,029
Total savings at 55: $916,094

Understanding Your Numbers

The average retirement age by state reveals an important truth: your financial freedom timeline depends heavily on personal discipline combined with geographic circumstances. Someone in Kansas or Illinois can potentially retire in their early 50s by consistently saving 20% of income, while someone in Hawaii or Massachusetts faces a dramatically longer accumulation period.

This analysis assumes stable employment from age 22 onward and consistent adherence to the 50/30/20 savings rule. Real life introduces variables like job changes, emergencies, and unexpected expenses. However, the fundamental principle remains: starting early, saving consistently, and letting compound growth work in your 401(k) can significantly accelerate your path to retirement independence.

The data, based on 2023 Census Bureau income statistics and Bureau of Labor Statistics consumer expenditure surveys, provides a realistic benchmark for planning. Your actual results may vary based on salary growth, investment returns, and lifestyle choices, but the state-by-state analysis demonstrates that retirement earlier than Social Security eligibility is achievable for many Americans who plan strategically.