After taking a hit during the financial crisis, 401(k) balances have come roaring back. Nationwide, the median 401(k) balance rose by 25% between 2008 and 2011, according to a study conducted by FutureAdvisor, a financial advisory start-up that allows people to personalize portfolio recommendations.

Read: The States Most Prepared for Retirement

Read: The States Least Prepared for Retirement

Of course, 401(k) balances and growth were not even across all states. FutureAdvisor provided 24/7 Wall St. with the median 401(k) balance for each state in 2011. But because median incomes in each state would alter the results of the balances, 24/7 Wall St. looked at the balances of each state relative to its median household income. These are the 10 states with the highest and lowest balances relative to income.

The states with high 401(k) balances relative to income fall into several different categories, with some overlap. Some of the states had higher median incomes than the rest of the country, which gave people more disposable income to invest in 401(k) plans. For instance, Delaware had a median income of $58,814, the ninth highest of all states, and ranked fifth highest in 401(k) balance as a portion of income. On the other end, New Mexico had a median income of $41,963, the eighth lowest among all states, and ranked seventh lowest in 401(k) balance as a proportion of income.

But not every state with high median 401(k) balances had high incomes and vice versa — seven of the 10 states that had the best 401(k) balance relative to income had median incomes below the national rate. For instance, Mississippi had the 10th-highest 401(k) balance as a proportion of income, despite having the lowest median income in 2011. Meanwhile, five of the 10 states that had the worst 401(k) savings had higher median incomes than the United States as a whole. For example, Alaska, which had a median income of $67,825, the second highest in the country, had the lowest 401(k) balance as a proportion of income.

States with low debt generally had better relative median 401(k) balances, since more money could go to funding for retirement. Seven of the 10 states with the highest median balances were in the bottom half in terms of average debt divided by income per capita. Debt played an even bigger role among the states with the lowest relative 401(k) balances. Eight of those 10 states were in the top half in terms of average debt divided by income per capita, including five in the top 10.

A large factor in 401(k) balances was growth between 2008 and 2011. Five of the 10 states with the highest balance relative to income were among the top 10 in terms of 401(k) growth in that specific time frame. Four of the states were in the top five. For instance, Mississippi’s median 401(k) balance grew by 84% during that time frame, more than any other state. On the flip side, growth was generally more sluggish among the states at the bottom of our list. For instance, Alaska’s median 401(k) only grew by less than 1% between 2008 and 2011, the lowest of all states.

FutureAdvisor provided data on median 401(k) balances for each year from 2008 to 2011, and provided plans’ growth during that time frame. We also looked at data from CreditKarma on the state’s average debt. CreditKarma broke this debt further to credit card debt, mortgage debt and automobile debt. Finally, we relied on data from the U.S. Department of Labor for unemployment figures and the U.S. Census Bureau for median household income.

These are the 10 states most (and least) prepared for retirement.

The 10 States Most Prepared for Retirement

10. Mississippi
> 401(k) balance to income: 58.2%
> Median balance: $21,497 (15th lowest)
> 401(k) growth 2008-2011: 83.6% (the highest)
> Debt to income: 632% (23rd lowest)
> Average total debt: $123,845 (the lowest)

Between 2008 and 2011, the median balance of a 401(k) plan in Mississippi grew by 84%, a higher rate of growth than any other state in the country. Between just 2010 and 2011, the median 401(k) balance jumped from $11,587, which was the second-lowest amount in the country, to $21,497, the 15th-lowest rate. This remarkable growth was despite the fact that households in the state earned a median income of $36,919 in 2011, the lowest among all states. Mississippi residents held just an average of $123,854 in debt, the second-lowest debt amount in the country. This includes just $4,088 in credit card debt, the lowest in the country, and $103,085 in mortgage debt, the second lowest in the country.

9. Missouri
> 401(k) balance to annual income: 59.0%
> Median balance: $26,705 (18th highest)
> 401(k) growth 2008-2011: 30.7% (13th highest)
> Debt to income: 575% (10th lowest)
> Average total debt: $141,594 (13th lowest)

The median balance of a 401(k) plan Missouri in 2011 was $26,705, the 18th highest in the country — the only year between 2008 and 2011 that it was among the top 20 states. Although far from the highest amount, this is impressive given that Missouri’s median household income of $45,247 was in the bottom-third of all states and well below the national median income of $50,502. The state’s average total debt divided by income was the 10th lowest among all states. The state’s average total debt of $141,594 was the 13th lowest of all states.

Also Read: States with the Widest Gap Between the Rich and Poor

8. Illinois
> 401(k) balance to annual income: 60.0%
> Median balance: $31,962 (8th highest)
> 401(k) growth 2008-2011: 28.2% (20th highest)
> Debt to income: 662% (25th highest)
> Average total debt: $184,547 (20th highest)

The median 401(k) balance of $31,962 in 2011 of Illinois residents was up approximately 65% since the stock market woes brought the median down to $19,336 in 2009, but growth was not as strong as in other states. While the median balance in 2011 was the eighth highest, it was the seventh highest in 2010 and the fifth highest in 2009. The state’s unemployment situation has been worse than the country as a whole during the economic downturn. The September 2012 unemployment rate was a full percentage point higher than the national rate. As for debt, while Illinois average debt compared to income placed the state in the middle of the pack, the state ranked 10th in credit card loan debt, generally considered the worst kind of debt.

7. West Virginia
> 401(k) balance to annual income: 60.8%
> Median balance: $23,390 (21st lowest)
> 401(k) growth 2008-2011: 43.0% (3rd highest)
> Debt to income: 570% (9th lowest)
> Average total debt: $125,641 (2nd lowest)

The median balance of a West Virginia 401(k) plan of $23,390 was the 21st lowest of all states. However, this ranking was up from 20th lowest in 2010 and 19th lowest in 2009. In fact, between 2008 and 2011, the median 401(k) balance grew by 43%, the third most of all states. Given that the state’s median income of $38,482 was the second lowest in the country, West Virginians clearly did a better job saving than residents of most states. It helped that West Virginians were not nearly as indebted as most states — average total debt of $125,641 was the second lowest in the United States. The average mortgage debt of $102,717 was the lowest in the country, while the average credit card debt of $4,707 was the fourth lowest.

6. Vermont
> 401(k) balance to annual income: 61.6%
> Median balance: $32,500 (6th highest)
> 401(k) growth 2008-2011: 16.2% (13th lowest)
> Debt to income: 595% (14th lowest)
>Average total debt: $167,231 (24th lowest)

While Vermonters are not exceptionally high earners — median household income in the state was $52,776 in 2011, slightly above the national median of $50,502 — they save much of what they earn. Last year, the median 401(k) balance of state residents was $32,500, one of the highest figures in the U.S. Among the factors that made Vermont a strong-saving state is the high employment, meaning many resident were more likely to receive 401(k) contributions from an employer. As of September of this year, the state’s unemployment rate was just 5.4%, one of the lowest in the nation. Residents may be more enticed to save money than in other states because of the high college tuition in the state. A four-year public college in Vermont costs more than $13,000 annually, the highest of any state but New Hampshire.
5. Delaware
> 401(k) balance to annual income: 63.3% (tied for 4th highest)
> Median balance: $37,208 (the highest)
> 401(k) growth 2008-2011: 50.7% (2nd highest)
> Debt to income: 717% (17th highest)
> Average total debt: $208,941 (13th highest)

Delaware is one of the best-saving states in the nation, boasting the nation’s highest median 401(k) balance of $37,208. Since 2008, when the 401(k) median balance was $24,686, it grew by almost 51% — the second-largest increase nationwide. The state managed to be a leading saver despite a relatively high cost of living, as well as an average of $208,941 of consumer debt — one of the higher amounts in the country. In particular, residents carried a large amount of credit card and mortgage debt, ranking in the top-third of states for both. One recent development likely to affect savings are the 1,500 planned job cuts by chemical-maker DuPont, the largest company by revenue in the state. A DuPont representative told Bloomberg these cuts “are impacting Delaware.”

4. Maine
> 401(k) balance to annual income: 63.3% (tied for 4th highest)
> Median balance: $29,131 (12th highest)
> 401(k) growth 2008-2011: 19.7% (19th lowest)
> Debt to income: 594% (13th lowest)
> Average total debt: $153,250 (19th lowest)

Jobs have not returned to Maine at the same pace as in the rest of the United States. In Maine, the unemployment rate fell by just 0.6 percentage points from 8.2% in 2010 to 7.6% this September. This was considerably higher than the 7.0% unemployment rate Maine had in January of 2012. Nationwide, the unemployment rate fell by 0.5 percentage points in the first nine months of 2012. Despite many residents not returning to work, the median balance of 401(k) plans in Maine rose by nearly $8,000 between 2010 and 2011. Still, not all Mainers have been efficient savers. Lori Parham, director of the AARP within Maine, told Bangor Daily News that one-third of the state’s senior citizens are entirely dependent on Social Security for income.

Also Read: States with the Highest (and Lowest) Taxes

3. Oregon
> 401(k) balance to annual income: 64.3%
> Median balance: $30,120 (10th highest)
> 401(k) growth 2008-2011: 39.4% (5th highest)
> Debt to income: 833% (5th highest)
> Average total debt: $210,101 (12th highest)

According to CreditKarma, Oregon’s residents had an average of $210,101 in debt, one of the higher totals in the nation and more than any other top-saving state. Despite being a high debt state, Oregon’s residents were able to build their savings in 2011, when the median 401(k) balance rose to $30,120 from $19,590 the year before. Residents were also strong savers despite many of them not being employed — the unemployment rate in Oregon as of September was 8.7%, or nearly one percentage point above the national rate.

2. Wisconsin
> 401(k) balance to annual income: 64.5%
> Median balance: $32,517 (5th highest)
> 401(k) growth 2008-2011: 19.5% (18th lowest)
> Debt to income: 636% (24th lowest)
> Average total debt: $166,822 (23rd lowest)

In 2011, the median balance for a 401(k) plan in Wisconsin was $32,517, better than all but one other state. Since 2008, when the financial crisis occurred, median plan balance has risen just 19.5%, less than the majority of states. Although median balance grew in 2010, 2011 was the first year pension balances exceeded their prerecession levels. Residents remained committed to saving despite job losses during the recession. In September, Wisconsin’s unemployment rate was 7.3%, down from 8.5% in 2010 and better than the national rate of 7.8%, but still well above the 4.8% recorded in 2008.

1. Iowa
> 401(k) balance to annual income: 70.7%
> Median balance: $34,954 (3rd highest)
> 401(k) growth 2008-2011: 33.2% (9th highest)
> Debt to income: 535% (4th lowest)
> Average total debt: $137,380 (9th lowest)

Iowans are among the best savers in the United States. Despite a median household income of $49,427 in 2011 — slightly below the national figure — the median balance of a 401(k) plan in Iowa was $34,954. This was the highest figure among all states by more than $2,000. The state benefited from a year of especially strong savings in 2011, when median plan balance rose by more than $10,000 from 2010. Several factors allowed Iowans to save. With an unemployment rate of just 5.2% in September, more residents were able to pay into 401(k) plans. Also helping Iowans save was the state’s cost of living — one of the lowest in the nation — while the average consumer debt of just $137,380 was also one of the lowest amounts in the country.

Also Read: The States Least Prepared for Retirement

The 10 States Least Prepared for Retirement

10. Colorado
> 401(k) balance to annual income: 42.6%
> Median balance: $23,583 (23rd lowest)
> 401(k) growth 2008-2011: 29.4% (18th highest)
> Debt to income: 744% (13th highest)
> Average total debt: $221,648 (10th highest)

Despite a median household income of $55,387, almost $5,000 above the national median income, residents of Colorado were especially poor savers. In 2011, the median balance of a resident’s 401(k) plans was just $23,583, worse than half the states in the country. One reason was Colorado residents’ high debt load of $221,648 on average in consumer debt, the 10th highest in the nation. Worse, the average resident of Colorado owed $6,176 in credit card debt — more than almost all states in the nation. Such debt usually carries especially high interest rates. The low 401(k) balance also may have been the result of many residents opting for the state’s 529 plan, which in Colorado matches lower- and middle-income residents’ college savings dollar-for-dollar up to $500.

9. California
> 401(k) balance to annual income: 42.3%
> Median balance: $24,254 (23rd highest)
> 401(k) growth 2008-2011: 30.5% (15th highest)
> Debt to income: 1,164% (2nd highest)
> Average total debt: $324,346 (2nd highest)

California residents had a relatively low 401(k) balance despite the fact that they had a median household income of $57,287 — 10th highest among all states — and the fact that their 401(k) balances grew by 30.5% between 2008 and 2011, among the top-third growth rates. Going against Californians, however, was their high level of debt — the second highest of all states in terms of both average household and as a proportion to income. The average mortgage debt in California was $302,850, the second highest of all states. California’s unemployment rate of 10.2% as of September 2012 was also the third-highest rate in the country and 2.4 percentage points above the national rate.

Also Read: America’s Richest Cities

8. Texas
> 401(k) balance to annual income: 41.9%
> Median balance: $20,715 (12th lowest)
> 401(k) growth 2008-2011: 20.8% (21st lowest)
> Debt to income: 632% (22nd lowest)
> Average total debt: $156,030 (20th lowest)

Texas residents had a median 401(k) balance of just $20,715 in 2011, although this was an improvement from a recent low of $12,563 in 2009. Despite this growth, in addition to one of the lowest costs of living in the nation and an unemployment rate one percentage point below the national rate, Texans remained poor savers. The problem did not have much to do with debt, as the average resident carried just over $156,000 in debt as of September — among the nation’s lower amounts. Income is also not likely a factor, although median household income was $49,392 in 2011 — just slightly more than $1,000 below the U.S. median. And there is no individual income tax in Texas.

7. New Mexico
> 401(k) balance to annual income: 41.8%
> Median balance: $17,557 (5th lowest)
> 401(k) growth 2008-2011: 10.0% (4th lowest)
> Debt to income: 780% (9th highest)
> Average total debt: $178,031 (24th highest)

Between 2008 and 2011, median 401(k) balances in New Mexico grew by just 10%, the fourth lowest in the country. While the median balance of $17,556 in 2011 was up from $14,888 in 2010 and $12,244 in 2009, the balance in 2011 was ranked fifth worst among all states, down from eighth worst in 2010 and 12th worst in 2009. New Mexicans had 780% more debt compared to their per capita income in 2011, the ninth-highest rate in the country. Although the median income in New Mexico was more than $8,500 less than the national median in 2011, the average credit card debt was $5,757, the 13th highest in the country.

6. Kansas
> 401(k) balance to annual income: 40.4%
> Median balance: $19,779 (9th lowest)
> 401(k) growth 2008-2011: 17.8% (16th lowest)
> Debt to income: 533% (3rd lowest)
> Average total debt: $135,704 (8th lowest)

Residents of Kansas were less likely to be burdened by debt than the residents of most other states. In 2011, the average resident had just $135,704 of consumer debt, one of the lowest totals in the nation, with the average mortgage debt of $114,093 also among the country’s lowest. Still, Kansas was just one of nine states with a median 401(k) balance of less than $20,000. One problem was that the median balance grew by just 17.8% since 2008, among the bottom third of growth rates in the country. Now may be a good time for residents to start placing savings in a 401(k). According to the Wichita Eagle, the state’s 529 college savings plan was just one of four such plans, out of 64, to receive a negative rating from Morningstar, which considered return on investment, fees and expenses, as well as the fund’s holdings.

5. Wyoming
> 401(k) balance to annual income: 37.8%
> Median balance: $21,297 (14th lowest)
> 401(k) growth 2008-2011: 30.4% (16th highest)
> Debt to income: 682% (23rd highest)
> Average total debt: $190,722 (19th highest)

Compared to most states, Wyoming’s economy is doing quite well. The September 2012 unemployment rate of 5.4% was tied with Utah for the sixth lowest in the country and significantly better than the national rate of 7.8%. The median household income in Wyoming was $56,322 in 2011, 13th highest of all states. However, as in many states, higher employment and income does not necessarily mean a higher median 401(k) balance. The median balance of Wyoming residents in 2011 was $21,297, which ranked the 14th lowest of all states. Nevertheless, that was better than in 2008, 2009 and 2010, when the state ranked 11th lowest, fourth lowest and fifth lowest, respectively.

4. Arizona
> 401(k) balance to annual income: 37.3%
> Median balance: $17,400 (4th lowest)
> 401(k) growth 2008-2011: 32.2% (11th highest)
> Debt to income: 827% (7th highest)
> Average total debt: $196,762 (17th highest)

In 2009, the median 401(k) balance of Arizona and three other states fell under $10,000. Although residents’ plans grew in the aftermath of the financial crisis — median balance rose 92% between 2009 and 2011 — Arizona’s savings remained among the lowest in the nation. Part of the problem may have been debt related. Although the average amount of debt Arizona residents owe was just $196,762 in September, far from the highest rate in the country, $174,138 of that amount was mortgage debt. This was especially troubling for residents of those counties in Arizona where, according to Zillow, more than 50% of homes were underwater in the second quarter of 2012. Home loans are underwater when the value of the debt exceeds the value of the home itself.

Also Read: 10 Cities With The Hottest Housing Markets

3. Utah
> 401(k) balance to annual income: 34.7%
> Median balance: $19,375 (8th lowest)
> 401(k) growth 2008-2011: 17.0% (14th lowest)
> Debt to income: 895% (3rd highest)
> Average total debt: $201,422 (15th highest)

Utah had a median household income of $55,869 in 2011, more than $5,000 above the national figure. The state also had an unemployment rate of 5.4% as of September, much lower than the national rate of 7.8%. It may therefore come as a surprise that Utah’s residents do not save much of their income. The median 401(k) balance in Utah was among the bottom third in the United States each year between 2008 and 2011. A high cost of living may have played a role, as Utah was one of the most expensive states to live in the second quarter of 2012. Another possible explanation is that households in Utah gave 10.6% of their median income in charitable contributions in 2008, according to an August report by the Council on Philanthropy. This was far more than any other state in the nation, partially due to Mormon tithing.

2. Nevada
> 401(k) balance to annual income: 31.7%
> Median balance: $15,493 (the lowest)
> 401(k) growth 2008-2011: 38.3% (6th highest)
> Debt to income: 832% (6th highest)
> Average total debt: $207,707 (14th highest)

In 2011, Nevada’s median 401(k) balance was just $15,493, less than any other state in the nation. However, this is not new for Nevada, which had the lowest median 401(k) balance in every year since 2008, and in 2009 was the only state with a median balance below $9,000. Debt is a concern for many savers, and the average consumer debt for Nevada’s residents exceeded $207,000 in September. However, perhaps the worst problem facing Nevada residents is the state’s unemployment rate, since fewer jobs lead to less income and, by relation, less savings. As of September, Nevada’s unemployment rate was 11.8%, by far the worst in the nation. The state also had the nation’s worst unemployment rate in September 2011, at 13.6%.

1. Alaska
> 401(k) balance to annual income: 24.5%
> Median balance: $16,643 (2nd lowest)
> 401(k) growth 2008-2011: 0.5% (the lowest)
> Debt to income: 713% (19th highest)
> Average total debt: $223,901 (9th highest)

As with every other state in the nation, Alaskans’ savings plans took a hit during the financial crisis — with the median balance of 401(k) plans in the state falling by more than 25% between 2008 and 2009. However, unlike almost all other states, the median balance of Alaska’s 401(k) plans grew by less than $300 in 2011, as the state fell from having the 16th lowest median 401(k) balance to having nation’s second-lowest balance. Such accounts were poorly funded despite Alaska having the second-highest median household income in the country, at $67,825 in 2011, behind only Maryland. Among the factors that could be preventing residents from saving is the state’s cost of living — one of the highest in the nation in the second quarter of 2012. Residents also had an average of nearly $224,000 in consumer debt as of September — also among the nation’s highest. Residents also had, on average, more credit card debt than any state in the nation, at $6,684.

Samuel Weigley and Alexander E.M. Hess

Also Read: The States Most Prepared for Retirement

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