When Can You Actually Stop Working? State-by-State Guide to Realistic Retirement Age

Think 66 is when you’ll retire? Most Americans hope so, but reality tells a different story. While the target retirement age hovers around 66 for average workers, actual retirement typically happens around 61—a significant jump from 57 in 1991. For those born after 1960, full Social Security benefits don’t kick in until 67, though reduced benefits are available at 62.

The real question isn’t what age you want to retire at, but what age you can retire at based on your location and savings discipline. Location matters far more than most people realize. Where you live determines everything from your cost of living to how much you need saved before you can actually stop working.

How This Analysis Works

To find the achievable retirement age by state, researchers analyzed median income data across all 50 states, then modeled a realistic savings scenario. Here’s what the model assumes:

• Workers start their careers at 22 and commit to disciplined saving
• They follow the 50/30/20 budget framework: 50% of income goes to essentials, 30% to discretionary spending, and 20% to savings
• Of that 20% savings rate, 14% lands in a regular savings account while 6% flows into a 401(k) with typical employer matching
• The 401(k) generates an average 5% annual return
• Retirees withdraw 4% annually from their nest egg to cover living expenses

Using Census Bureau income data and Bureau of Labor Statistics expenditure surveys, researchers calculated when workers in each state would accumulate enough savings to cover their living expenses indefinitely.

The Winners: Retire in Your 50s

Several states let disciplined savers hang up their work boots surprisingly early. The most aggressive retirement timelines cluster in the Midwest and South:

Illinois leads the pack at just 53 years old, requiring $896,767 in total savings. Iowa, Nebraska, and Kansas follow close behind in the 52-53 range. Moving just slightly higher, Indiana, Minnesota, and Utah target 54, while South Dakota, Wyoming, and Oklahoma sit at 55-56.

Colorado, Georgia, and Idaho also hit the 56-year milestone, making the Great Plains and Rocky Mountain regions particularly favorable for early retirement scenarios.

The Middle Ground: Late 50s to Early 60s

The majority of states cluster between 56 and 62 years old. Ohio, New Hampshire, and North Dakota target 58, while Maryland and North Carolina require working into 59.

Moving into the 60-62 range, you’ll find Arizona, Louisiana, Alabama, Arkansas, Kentucky, Montana, Oregon, New Mexico, Vermont, and Mississippi. Each state in this band requires between $800,000 and $1.4 million in accumulated savings.

Connecticut, Delaware, Nevada, and Rhode Island push into 61, while Maine and West Virginia extend to 63.

The Longer Haul: Working Into Your 60s

Coastal and high-cost-of-living states demand longer work careers. Massachusetts and New York—two of America’s most expensive states—require workers to save until 68. California sits at 66, reflecting its significantly higher living costs.

Alaska and Florida target 63, while several states including Maryland, Virginia, and Washington require substantial savings targets exceeding $1.2 million.

The Outlier: Hawaii’s Reality Check

Hawaii stands alone at 75-plus years, a sobering reminder that cost of living can dramatically extend working years. The state requires $2.48 million in savings—nearly three times the national average for some states. Even at age 74, workers in Hawaii would have accumulated only $2.33 million, falling short of the target.

What This Means for Your Retirement Age by State

The spread is dramatic. Retiring at 52 versus 68 represents 16 years of difference—not because of work ethic, but geography. A worker earning median income in Kansas faces an entirely different retirement timeline than one in Massachusetts, even following identical savings discipline.

Several factors drive this variation:

Cost of living is the primary determinant. States with lower housing, healthcare, and general expenses require less savings to sustain retirement.

Income levels vary significantly. Higher-income states sometimes enable faster wealth accumulation, but only if that income outpaces the increased cost of living.

Tax burden matters too. While this analysis focuses on gross income, state and local tax variations affect real purchasing power.

The Real Strategy

The data suggests three paths forward:

First, maximize your savings rate early. The 50/30/20 framework works, but those who push toward 30-35% savings rates could retire 3-5 years earlier.

Second, consider geographic arbitrage. If your career allows remote work, earning a high-income state’s salary while living in a low-cost state could cut years off your work life.

Third, don’t ignore the 401(k). The model assumes a 50% employer match up to 3%. Many employers match more, and the tax-advantaged growth compounds dramatically over decades.

The Bottom Line

Your realistic retirement age by state depends on discipline, income, and location. While Americans average retirement at 61, the range spans from 52 to 75-plus depending on where you choose to live and how aggressively you save. Start at 22, stick to your savings plan, and you might surprise yourself with how early retirement becomes achievable—even if it’s not the 66-year-old dream most people envision.