When Can Americans Realistically Retire? The Average Retirement Age Varies Dramatically by State

The target retirement age most Americans dream about is 66, according to recent polling data. However, reality tells a different story. The average retirement age in the United States stands at 61, a notable increase from 57 back in 1991, research from Gallup shows. For those born after 1960, full Social Security benefits begin at 67, though reduced benefits are available at 62. But here’s the encouraging part: if you’ve been consistent with saving and your retirement fund is healthy—especially if you live in a state with a lower cost of living—early retirement before government benefits kick in is entirely within reach.

Understanding the National Average Retirement Age

When researchers at GOBankingRates analyzed what workers across America could realistically achieve, they uncovered something surprising: your average retirement age depends heavily on where you live. Using data from the U.S. Census Bureau on median incomes by age and state, combined with regional cost-of-living indices, they determined when typical workers following disciplined savings habits could actually retire.

The calculation reveals that the average US retirement age varies from a low of 52 (Kansas) to a high of 75-plus (Hawaii). This massive 23-year spread underscores how geography shapes retirement feasibility in America. A worker in Colorado or Georgia might reasonably expect to retire by 56, while someone in Massachusetts or New York faces a realistic retirement age pushing toward 68.

The Savings Target That Determines Your Retirement Age

To calculate when you can realistically stop working, GOBankingRates established an “ideal savings target” for each state. This target assumes you’ll draw down 4% of your savings annually to cover living expenses, supplemented by Social Security income. The methodology factored in the actual cost of living for retirees over 65 in each state, using Bureau of Labor Statistics data.

The numbers are stark: Alabama residents need approximately $818,555 saved to retire at 58, while Hawaii residents require $2,485,329—nearly three times more—to retire at age 75 or later. These differences reflect genuine disparities in living costs. Why does Hawaii demand such extraordinary savings? Housing, food, utilities, and services cost dramatically more on the islands, requiring substantially larger retirement nest eggs.

How the Savings Path Works: The 50/30/20 Framework

The analysis assumed workers follow a specific savings structure starting at age 22:

• 50% of income goes to necessities
• 30% to discretionary spending
• 20% to savings

Of that 20% savings portion, workers deposit 14% into a standard savings account and contribute 6% to a 401(k) plan with typical employer matching (50% match up to 3%). Assuming average annual returns of 5% on 401(k) investments, GOBankingRates calculated accumulated savings at ages 24, 34, 44, and 58-77.

The moment accumulated savings met or exceeded the state’s target, that year became the realistic retirement age for that state.

Why Your State Matters: Geographic Cost of Living Impact on Average US Retirement Age

The geographic lottery of retirement is real. Your average retirement age depends primarily on two factors: your state’s median income and your state’s cost of living. Workers in high-earning, moderate-cost states like Maryland (realistic retirement age: 59 with $1,442,509 needed) can retire earlier than high-earning, high-cost states like Massachusetts (realistic retirement age: 68 with $1,889,184 needed).

Southern and Midwestern states consistently offer earlier retirement ages. Illinois workers can realistically retire at 53, Iowa at 53, Kansas at 52, and Nebraska at 53. These states combine reasonable median incomes with lower costs of living—particularly for housing and healthcare. Even maintaining the same savings discipline gets you to your retirement goal five to eight years earlier than coastal alternatives.

Early Retirement States: Where You Can Stop Working Before 56

The most achievable retirement ages cluster in the Midwest and South:

• Kansas: 52 - $808,127 needed
• Illinois: 53 - $896,767 needed
• Iowa: 53 - $837,674 needed
• Nebraska: 53 - $884,601 needed
• Indiana: 54 - $849,840 needed
• Minnesota: 54 - $981,931 needed
• Utah: 54 - $1,074,046 needed
• South Dakota: 55 - $929,790 needed
• Colorado: 56 - $1,105,331 needed
• Georgia: 56 - $827,246 needed
• Idaho: 56 - $1,018,429 needed
• Oklahoma: 56 - $778,581 needed
• Texas: 56 - $895,029 needed
• Virginia: 56 - $1,074,046 needed

In these states, a worker following the 50/30/20 rule since age 22 could reasonably expect to exit the workforce in their mid-50s. Oklahoma offers the lowest target savings amount at $778,581, while Colorado requires $1,105,331—reflecting differing costs of living despite similar retirement ages.

Late Retirement States: Where You Need To Work Into Your 60s and Beyond

By contrast, high-cost states require extended working years:

• California: 66 - $1,678,882 needed
• Massachusetts: 68 - $1,889,184 needed
• New York: 68 - $1,625,003 needed
• Hawaii: 75+ - $2,485,329 needed

Hawaii stands alone as genuinely challenging territory. Even with consistent saving from 22 onward following the 50/30/20 framework, the average retirement age in Hawaii extends beyond 74—requiring workers to accumulate over $2.4 million. That’s the difference between island living and mainland alternatives: a worker reaching age 74 with $2.3 million saved would still fall roughly $150,000 short of Hawaii’s target.

New York and Massachusetts similarly demand continued work into the late 60s, with California requiring workers to stretch into their mid-60s. These high-cost coastal states make the national average retirement age of 61 look generous by comparison.

The Middle Ground: Realistic Retirement Ages Between 57-64

Many states cluster in the 57-64 range—above the national average but more achievable than coastal extremes:

• Alaska: 63 - $1,487,698 needed
• Arizona: 60 - $1,126,187 needed
• Arkansas: 62 - $862,006 needed
• Connecticut: 61 - $1,317,371 needed
• Delaware: 61 - $1,122,711 needed
• Florida: 63 - $1,074,046 needed
• Kentucky: 62 - $936,742 needed
• Louisiana: 60 - $914,147 needed
• Maine: 63 - $1,291,300 needed
• Maryland: 59 - $1,442,509 needed
• Michigan: 57 - $889,815 needed
• Mississippi: 61 - $764,676 needed
• Missouri: 56 - $835,936 needed
• Montana: 62 - $1,108,807 needed
• Nevada: 61 - $1,080,998 needed
• New Hampshire: 58 - $1,305,205 needed
• New Jersey: 57 - $1,240,897 needed
• New Mexico: 62 - $921,099 needed
• North Carolina: 59 - $950,646 needed
• North Dakota: 58 - $974,978 needed
• Ohio: 58 - $884,601 needed
• Oregon: 62 - $1,393,844 needed
• Pennsylvania: 57 - $994,097 needed
• Rhode Island: 61 - $1,249,588 needed
• South Carolina: 59 - $926,313 needed
• Tennessee: 57 - $855,054 needed
• Vermont: 62 - $1,301,729 needed
• Washington: 58 - $1,272,182 needed
• West Virginia: 63 - $851,578 needed
• Wisconsin: 57 - $947,170 needed
• Wyoming: 55 - $895,029 needed

These states represent the “realistic retirement age” sweet spot for many Americans—achievable within a typical career span while accounting for regional economic realities.

What This Means for Your Retirement Planning

The average US retirement age tells only part of the story. Your personal retirement age depends on three critical variables:

1. Your Savings Discipline - Workers starting at 22 and consistently saving 20% of income follow a completely different trajectory than those who start later or save inconsistently. Every decade of delayed savings extends your realistic retirement age by approximately 8-10 years.

2. Your Income - The analysis uses median income by age for each state. Workers earning above median income can retire earlier with the same discipline; those below median must work longer or save higher percentages.

3. Your Location’s Cost of Living - Housing costs alone create massive regional variations. A $2,000 monthly retirement budget in rural Kansas supports a comfortable lifestyle; the same amount barely covers housing in San Francisco or Honolulu.

The Social Security Consideration

Social Security remains relevant but shouldn’t anchor your retirement timeline. Full benefits don’t arrive until 67 for those born after 1960—yet this analysis shows 52 states or territories where workers can realistically retire before 67. The research assumes you’re drawing from accumulated savings, not living on Social Security alone. This distinction is crucial: if you retire at 56 as Georgia’s average suggests, Social Security becomes a supplement to your savings drawdown, not your primary income source.

Delayed claiming—waiting until 70 for maximum benefits—could enhance your financial security, but it’s not required for the early average retirement ages shown in lower-cost states.

Building Your Personal Retirement Timeline

The methodology reveals something empowering: if you begin earning at 22, follow the 50/30/20 allocation discipline, and maintain steady contributions to both savings accounts and 401(k) plans, you’ll reach your state’s realistic retirement age automatically. The research wasn’t prescriptive or theoretical; it analyzed what actually accumulates when workers follow disciplined saving patterns across 50 different economic environments.

Your average retirement age might be earlier than you expect—particularly if you live in Kansas, Illinois, Colorado, or Oklahoma. Or you might face a longer working timeline if you’re in Massachusetts, New York, or Hawaii. But the path is mathematically transparent: know your target, follow the framework, and your realistic retirement age becomes inevitable rather than uncertain.