Every day, an estimated 10,000 Americans baby boomers retire — and unfortunately many of them will spend their golden years pinching pennies. According to a recent estimate released by the U.S. Government Accountability Office, nearly half of all Americans 55 and older have no retirement savings.
Still, despite having no retirement savings, many retirees are expected to be relatively financially secure over the course of their retirement. In addition to monthly Social Security payments, millions of older retired Americans — including former teachers, firefighters, police officers, and other state and local government employees — are also expected to receive pensions.
According to the U.S. Census Bureau’s 2017 Annual Survey of Public Pensions, state and local governments contributed $144.6 billion to employee pension programs in 2017. Not all states, however, spend equally on retirement programs.
24/7 Wall St. reviewed annual pension fund contributions at the state and local level to identify the states that are spending the most to fund their residents’ retirement. States are ranked based on total 2017 pension fund contributions per current state and local government employee.
The states spending the most per public sector worker do not necessarily have greater than average public sector employment. In fact, Alaska and Hawaii are the only two states in the top 10 on this list to also rank among the 10 states where the most people work for the government. Here is a full list of states where the most people work for the government.
While public pensions are a financial lifeline to millions of Americans heading into retirement, they are costly — and most state pension systems are woefully underfunded. In 20 states, less than two-thirds of pension obligations have adequate funding. Some of the states spending the most on retirement in 2017 also have the largest funding gaps to close. Here is every state’s pension crisis, ranked.
Click here to see the states spending the most to fund their residents retirement
Click here to read our methodology
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50. South Dakota
> 2017 state and local gov’t pension contributions: $2,107 per gov’t worker
> Pension obligations funded: 100.1% (2nd highest)
> Workers in state and local gov’t: 67,700 (15.6% of labor force)
> 65 and older population: 141,886 (16.3% of total)
See all stories featuring: South Dakota
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49. Wyoming
> 2017 state and local gov’t pension contributions: $2,822 per gov’t worker
> Pension obligations funded: 75.9% (23rd highest)
> Workers in state and local gov’t: 62,400 (22.0% of labor force)
> 65 and older population: 90,437 (15.6% of total)
See all stories featuring: Wyoming
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48. Wisconsin
> 2017 state and local gov’t pension contributions: $2,883 per gov’t worker
> Pension obligations funded: 102.6% (the highest)
> Workers in state and local gov’t: 378,400 (12.8% of labor force)
> 65 and older population: 956,184 (16.5% of total)
See all stories featuring: Wisconsin
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47. North Carolina
> 2017 state and local gov’t pension contributions: $2,992 per gov’t worker
> Pension obligations funded: 90.7% (6th highest)
> Workers in state and local gov’t: 657,600 (14.9% of labor force)
> 65 and older population: 1.6 million (15.9% of total)
See all stories featuring: North Carolina
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46. Nebraska
> 2017 state and local gov’t pension contributions: $3,009 per gov’t worker
> Pension obligations funded: 90.2% (8th highest)
> Workers in state and local gov’t: 156,300 (15.3% of labor force)
> 65 and older population: 294,905 (15.4% of total)
See all stories featuring: Nebraska
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45. North Dakota
> 2017 state and local gov’t pension contributions: $3,020 per gov’t worker
> Pension obligations funded: 63.8% (16th lowest)
> Workers in state and local gov’t: 73,300 (17.0% of labor force)
> 65 and older population: 112,669 (14.9% of total)
See all stories featuring: North Dakota
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44. Iowa
> 2017 state and local gov’t pension contributions: $3,325 per gov’t worker
> Pension obligations funded: 82.3% (12th highest)
> Workers in state and local gov’t: 242,400 (15.4% of labor force)
> 65 and older population: 524,624 (16.7% of total)
See all stories featuring: Iowa
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43. Idaho
> 2017 state and local gov’t pension contributions: $3,346 per gov’t worker
> Pension obligations funded: 91.3% (5th highest)
> Workers in state and local gov’t: 110,200 (15.4% of labor force)
> 65 and older population: 262,594 (15.3% of total)
See all stories featuring: Idaho
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42. Vermont
> 2017 state and local gov’t pension contributions: $3,482 per gov’t worker
> Pension obligations funded: 64.3% (17th lowest)
> Workers in state and local gov’t: 49,300 (15.7% of labor force)
> 65 and older population: 117,150 (18.8% of total)
See all stories featuring: Vermont
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41. Minnesota
> 2017 state and local gov’t pension contributions: $3,510 per gov’t worker
> Pension obligations funded: 63.3% (15th lowest)
> Workers in state and local gov’t: 391,400 (13.3% of labor force)
> 65 and older population: 858,904 (15.4% of total)
See all stories featuring: Minnesota
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40. Tennessee
> 2017 state and local gov’t pension contributions: $3,552 per gov’t worker
> Pension obligations funded: 96.5% (3rd highest)
> Workers in state and local gov’t: 381,300 (12.7% of labor force)
> 65 and older population: 1.1 million (15.9% of total)
See all stories featuring: Tennessee
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39. Montana
> 2017 state and local gov’t pension contributions: $3,561 per gov’t worker
> Pension obligations funded: 72.8% (25th highest)
> Workers in state and local gov’t: 77,800 (16.5% of labor force)
> 65 and older population: 190,216 (18.1% of total)
See all stories featuring: Montana
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38. Alabama
> 2017 state and local gov’t pension contributions: $3,997 per gov’t worker
> Pension obligations funded: 70.9% (25th lowest)
> Workers in state and local gov’t: 331,500 (16.4% of labor force)
> 65 and older population: 803,216 (16.5% of total)
See all stories featuring: Alabama
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37. Texas
> 2017 state and local gov’t pension contributions: $4,014 per gov’t worker
> Pension obligations funded: 76.1% (22nd highest)
> Workers in state and local gov’t: 1.7 million (14.2% of labor force)
> 65 and older population: 3.5 million (12.2% of total)
See all stories featuring: Texas
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36. South Carolina
> 2017 state and local gov’t pension contributions: $4,170 per gov’t worker
> Pension obligations funded: 54.3% (7th lowest)
> Workers in state and local gov’t: 332,400 (15.9% of labor force)
> 65 and older population: 865,817 (17.2% of total)
See all stories featuring: South Carolina
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35. Oklahoma
> 2017 state and local gov’t pension contributions: $4,322 per gov’t worker
> Pension obligations funded: 77.9% (18th highest)
> Workers in state and local gov’t: 300,700 (18.1% of labor force)
> 65 and older population: 601,132 (15.3% of total)
See all stories featuring: Oklahoma
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34. Florida
> 2017 state and local gov’t pension contributions: $4,330 per gov’t worker
> Pension obligations funded: 79.3% (15th highest)
> Workers in state and local gov’t: 966,700 (11.3% of labor force)
> 65 and older population: 4.2 million (20.1% of total)
See all stories featuring: Florida
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33. Oregon
> 2017 state and local gov’t pension contributions: $4,344 per gov’t worker
> Pension obligations funded: 83.1% (10th highest)
> Workers in state and local gov’t: 281,700 (15.0% of labor force)
> 65 and older population: 708,868 (17.1% of total)
See all stories featuring: Oregon
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32. Colorado
> 2017 state and local gov’t pension contributions: $4,429 per gov’t worker
> Pension obligations funded: 47.1% (5th lowest)
> Workers in state and local gov’t: 383,100 (14.4% of labor force)
> 65 and older population: 773,699 (13.8% of total)
See all stories featuring: Colorado
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31. Maine
> 2017 state and local gov’t pension contributions: $4,477 per gov’t worker
> Pension obligations funded: 81.9% (13th highest)
> Workers in state and local gov’t: 84,900 (13.6% of labor force)
> 65 and older population: 266,741 (20.0% of total)
See all stories featuring: Maine
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30. Arkansas
> 2017 state and local gov’t pension contributions: $4,552 per gov’t worker
> Pension obligations funded: 76.9% (21st highest)
> Workers in state and local gov’t: 191,200 (15.3% of labor force)
> 65 and older population: 497,024 (16.5% of total)
See all stories featuring: Arkansas
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29. New Mexico
> 2017 state and local gov’t pension contributions: $4,654 per gov’t worker
> Pension obligations funded: 62.5% (13th lowest)
> Workers in state and local gov’t: 158,100 (19.0% of labor force)
> 65 and older population: 349,929 (16.8% of total)
See all stories featuring: New Mexico
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28. Washington
> 2017 state and local gov’t pension contributions: $4,820 per gov’t worker
> Pension obligations funded: 89.6% (9th highest)
> Workers in state and local gov’t: 511,100 (15.4% of labor force)
> 65 and older population: 1.1 million (15.1% of total)
See all stories featuring: Washington
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27. Mississippi
> 2017 state and local gov’t pension contributions: $4,842 per gov’t worker
> Pension obligations funded: 61.6% (11th lowest)
> Workers in state and local gov’t: 217,300 (18.9% of labor force)
> 65 and older population: 465,719 (15.6% of total)
See all stories featuring: Mississippi
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26. Delaware
> 2017 state and local gov’t pension contributions: $4,952 per gov’t worker
> Pension obligations funded: 82.8% (11th highest)
> Workers in state and local gov’t: 60,300 (13.2% of labor force)
> 65 and older population: 173,217 (18.0% of total)
See all stories featuring: Delaware
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25. Indiana
> 2017 state and local gov’t pension contributions: $5,011 per gov’t worker
> Pension obligations funded: 65.0% (18th lowest)
> Workers in state and local gov’t: 390,200 (12.5% of labor force)
> 65 and older population: 1.0 million (15.4% of total)
See all stories featuring: Indiana
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24. Georgia
> 2017 state and local gov’t pension contributions: $5,140 per gov’t worker
> Pension obligations funded: 79.2% (16th highest)
> Workers in state and local gov’t: 586,400 (13.2% of labor force)
> 65 and older population: 1.4 million (13.4% of total)
See all stories featuring: Georgia
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23. Utah
> 2017 state and local gov’t pension contributions: $5,304 per gov’t worker
> Pension obligations funded: 90.3% (7th highest)
> Workers in state and local gov’t: 208,300 (14.2% of labor force)
> 65 and older population: 335,195 (10.8% of total)
See all stories featuring: Utah
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22. New Hampshire
> 2017 state and local gov’t pension contributions: $5,341 per gov’t worker
> Pension obligations funded: 62.7% (14th lowest)
> Workers in state and local gov’t: 82,600 (12.2% of labor force)
> 65 and older population: 236,321 (17.6% of total)
See all stories featuring: New Hampshire
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21. Virginia
> 2017 state and local gov’t pension contributions: $5,475 per gov’t worker
> Pension obligations funded: 77.2% (20th highest)
> Workers in state and local gov’t: 538,700 (13.6% of labor force)
> 65 and older population: 1.3 million (15.0% of total)
See all stories featuring: Virginia
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20. West Virginia
> 2017 state and local gov’t pension contributions: $5,486 per gov’t worker
> Pension obligations funded: 78.9% (17th highest)
> Workers in state and local gov’t: 129,900 (18.2% of labor force)
> 65 and older population: 350,572 (19.3% of total)
See all stories featuring: West Virginia
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19. Missouri
> 2017 state and local gov’t pension contributions: $5,632 per gov’t worker
> Pension obligations funded: 77.9% (18th highest)
> Workers in state and local gov’t: 379,800 (13.2% of labor force)
> 65 and older population: 1.0 million (16.5% of total)
See all stories featuring: Missouri
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18. Kansas
> 2017 state and local gov’t pension contributions: $5,671 per gov’t worker
> Pension obligations funded: 67.1% (22nd lowest)
> Workers in state and local gov’t: 231,100 (16.5% of labor force)
> 65 and older population: 447,451 (15.4% of total)
See all stories featuring: Kansas
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17. Arizona
> 2017 state and local gov’t pension contributions: $6,027 per gov’t worker
> Pension obligations funded: 62.2% (12th lowest)
> Workers in state and local gov’t: 357,700 (12.9% of labor force)
> 65 and older population: 1.2 million (17.1% of total)
See all stories featuring: Arizona
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16. Nevada
> 2017 state and local gov’t pension contributions: $6,410 per gov’t worker
> Pension obligations funded: 74.4% (24th highest)
> Workers in state and local gov’t: 141,600 (10.6% of labor force)
> 65 and older population: 458,679 (15.3% of total)
See all stories featuring: Nevada
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15. Ohio
> 2017 state and local gov’t pension contributions: $6,719 per gov’t worker
> Pension obligations funded: 80.1% (14th highest)
> Workers in state and local gov’t: 701,900 (12.7% of labor force)
> 65 and older population: 1.9 million (16.6% of total)
See all stories featuring: Ohio
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14. New Jersey
> 2017 state and local gov’t pension contributions: $6,740 per gov’t worker
> Pension obligations funded: 35.8% (2nd lowest)
> Workers in state and local gov’t: 552,300 (13.4% of labor force)
> 65 and older population: 1.4 million (15.7% of total)
See all stories featuring: New Jersey
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13. Michigan
> 2017 state and local gov’t pension contributions: $7,976 per gov’t worker
> Pension obligations funded: 65.1% (20th lowest)
> Workers in state and local gov’t: 551,100 (12.6% of labor force)
> 65 and older population: 1.7 million (16.7% of total)
See all stories featuring: Michigan
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12. Massachusetts
> 2017 state and local gov’t pension contributions: $7,977 per gov’t worker
> Pension obligations funded: 59.9% (10th lowest)
> Workers in state and local gov’t: 406,600 (11.3% of labor force)
> 65 and older population: 1.1 million (16.1% of total)
See all stories featuring: Massachusetts
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11. Maryland
> 2017 state and local gov’t pension contributions: $8,043 per gov’t worker
> Pension obligations funded: 68.6% (23rd lowest)
> Workers in state and local gov’t: 357,300 (13.1% of labor force)
> 65 and older population: 902,586 (14.9% of total)
See all stories featuring: Maryland
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10. Alaska
> 2017 state and local gov’t pension contributions: $8,115 per gov’t worker
> Pension obligations funded: 66.6% (21st lowest)
> Workers in state and local gov’t: 66,000 (20.0% of labor force)
> 65 and older population: 83,041 (11.2% of total)
See all stories featuring: Alaska
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9. Kentucky
> 2017 state and local gov’t pension contributions: $8,421 per gov’t worker
> Pension obligations funded: 33.9% (the lowest)
> Workers in state and local gov’t: 279,200 (14.5% of labor force)
> 65 and older population: 709,048 (15.9% of total)
See all stories featuring: Kentucky
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8. Hawaii
> 2017 state and local gov’t pension contributions: $8,507 per gov’t worker
> Pension obligations funded: 54.8% (8th lowest)
> Workers in state and local gov’t: 92,200 (14.1% of labor force)
> 65 and older population: 253,750 (17.8% of total)
See all stories featuring: Hawaii
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7. Louisiana
> 2017 state and local gov’t pension contributions: $8,937 per gov’t worker
> Pension obligations funded: 65.1% (20th lowest)
> Workers in state and local gov’t: 297,200 (15.1% of labor force)
> 65 and older population: 696,111 (14.9% of total)
See all stories featuring: Louisiana
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6. Pennsylvania
> 2017 state and local gov’t pension contributions: $12,068 per gov’t worker
> Pension obligations funded: 55.3% (9th lowest)
> Workers in state and local gov’t: 606,100 (10.2% of labor force)
> 65 and older population: 2.3 million (17.8% of total)
See all stories featuring: Pennsylvania
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5. California
> 2017 state and local gov’t pension contributions: $12,792 per gov’t worker
> Pension obligations funded: 68.9% (24th lowest)
> Workers in state and local gov’t: 2.3 million (13.8% of labor force)
> 65 and older population: 5.5 million (13.9% of total)
See all stories featuring: California
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4. New York
> 2017 state and local gov’t pension contributions: $12,880 per gov’t worker
> Pension obligations funded: 94.5% (4th highest)
> Workers in state and local gov’t: 1.7 million (14.3% of labor force)
> 65 and older population: 3.2 million (15.9% of total)
See all stories featuring: New York
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3. Rhode Island
> 2017 state and local gov’t pension contributions: $13,777 per gov’t worker
> Pension obligations funded: 53.7% (6th lowest)
> Workers in state and local gov’t: 49,900 (10.1% of labor force)
> 65 and older population: 176,572 (16.7% of total)
See all stories featuring: Rhode Island
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2. Connecticut
> 2017 state and local gov’t pension contributions: $14,103 per gov’t worker
> Pension obligations funded: 45.7% (4th lowest)
> Workers in state and local gov’t: 220,500 (13.1% of labor force)
> 65 and older population: 601,094 (16.8% of total)
See all stories featuring: Connecticut
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1. Illinois
> 2017 state and local gov’t pension contributions: $15,562 per gov’t worker
> Pension obligations funded: 38.4% (3rd lowest)
> Workers in state and local gov’t: 747,700 (12.3% of labor force)
> 65 and older population: 1.9 million (15.2% of total)
See all stories featuring: Illinois
Methodology
To identify the states spending the most to fund their residents’s retirement, 24/7 Wall St. reviewed total state and local government pension contributions in 2017. We adjusted that figure per state and local government worker using 2017 data. State and local government pension spending came from the U.S. Census Bureau’s 2017 Annual Survey of Public Pensions and public sector employment came from the Bureau of Labor Statistics. We also considered each state’s pension funding ratio, which is the share of pension obligations that have funding from Pew Charitable Trusts, a public policy advocacy group. The share of the population 65 and older came from the U.S. Census Bureau’s 2017 American Community Survey.
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