10 Worst States for Seniors Who Need To Work in Retirement

According to the Social Security Administration, the average Social Security benefit in the U.S. is currently $1,907. In many states, this isn’t enough to cover your cost of living as a retiree, especially if you’re still paying your mortgage. This means seniors will often need to either rely on savings to supplement their income or continue working past retirement age.

In this study, GOBankingRates analyzed data across all U.S. states to find the toughest places for seniors who want to keep working during retirement. The research included important factors like workplace participation for people over 65, household incomes, living costs and senior unemployment rates. Here are the 10 worst states for working seniors.

• Household median income: $81,386
• Average monthly mortgage cost: $2,590
• Average monthly expenditure cost (after mortgage): $1,976
• Total cost of living monthly: $4,566
• Total cost of living annually: $54,786
• Unemployment rate for ages 65 and older: 9.3%

In New York, seniors who need to work may face a tough situation. While the state offers a higher median household income, the cost of living is also very high, and the unemployment rate for older people is around 9.3%. This means it can be hard for seniors who are looking for work to find jobs. 

Living expenses in places like New York City can quickly eat up a lot of a senior’s social security and other income. In New York, 18.1% of the population is aged 65 and over, with 35.9% of these seniors participating in the labor force.

• Household median income: $67,917
• Average monthly mortgage cost: $2,374
• Average monthly expenditure cost (after mortgage): $1,918
• Total cost of living monthly: $4,292
• Total cost of living annually: $51,510
• Unemployment rate for ages 65 and older: 8.2%

Florida has a significant senior population, constituting 21.6% of its residents, though only 30.5% of these seniors are active in the labor force. Florida is a popular place for retirees, in part because of its warm climate and amenities. According to the AARP, despite rising prices, Florida is currently the number one state that retirees move to. However, working seniors might find it difficult. 

The income for households isn’t very high, which can make managing housing and food costs more difficult. Also, the unemployment rate for seniors is a relatively high 8.2%, which means that finding a job may be challenging.

• Household median income: $94,814
• Average monthly mortgage cost: $5,632
• Average monthly expenditure cost (after mortgage): $2,562
• Total cost of living monthly: $8,194
• Total cost of living annually: $98,332
• Unemployment rate for ages 65 and older: 7.3%

Hawaii is one of the most expensive states in the U.S., which can be very hard on seniors with limited incomes. Finding work here is also tough because the unemployment rate for seniors is high. The beautiful scenery is a draw, but living costs are a major challenge.

Hawaii’s population includes 20.5% seniors, with an impressive 41% labor force participation rate among them, one of the highest in the nation.

• Household median income: $68,251
• Average monthly mortgage cost: $2,314
• Average monthly expenditure cost (after mortgage): $2,057
• Total cost of living monthly: $4,371
• Total cost of living annually: $52,451
• Unemployment rate for ages 65 and older: 8.6%

Maine has the highest percentage of senior citizens in its population, at 22.6%. Of those, 35% remain in the labor force. 

Despite this, it’s not an easy place for seniors needing to work. With a high unemployment rate for older people and relatively high living costs, seniors in Maine might struggle to find jobs that help them keep up financially.

• Household median income: $72,581
• Average monthly mortgage cost: $2,524
• Average monthly expenditure cost (after mortgage): $1,868
• Total cost of living monthly: $4,392
• Total cost of living annually: $52,707
• Unemployment rate for ages 65 and older: 9.3%

Arizona attracts many retirees with its warm weather. However, seniors looking to work might face hurdles due to a high unemployment rate for their age group. The state has a big community of seniors, but the job market does not always support their needs.

With 18.8% of its population being seniors, Arizona sees about 29.1% of these older residents still engaging in the workforce.

• Household median income: $97,126
• Average monthly mortgage cost: $3,149
• Average monthly expenditure cost (after mortgage): $1,951
• Total cost of living monthly: $5,100
• Total cost of living annually: $61,205
• Unemployment rate for ages 65 and older: 12.0%

For seniors in New Jersey, the high living costs combined with a senior unemployment rate of 12% create a challenging environment. Being close to big cities like New York adds to the expense, making it harder for seniors to live comfortably without additional income.

Seniors make up 17.4% of New Jersey’s population and a robust 41.2% of these seniors are still actively working, one of the higher rates of senior labor force participation in the U.S.

• Household median income: $79,325
• Average monthly mortgage cost: $2,225
• Average monthly expenditure cost (after mortgage): $1,899
• Total cost of living monthly: $4,124
• Total cost of living annually: $49,486
• Unemployment rate for ages 65 and older: 11.2%

While Delaware is somewhat cheaper than other northeastern states, it still presents difficulties for seniors wanting to work. With an 11.2% unemployment rate for seniors, it can be tough for older residents to find suitable work.

Delaware hosts a senior population that makes up 20.8% of its total, with 33.6% of these individuals still participating in the workforce.

• Household median income: $76,632
• Average monthly mortgage cost: $2,909
• Average monthly expenditure cost (after mortgage): $2,035
• Total cost of living monthly: $4,945
• Total cost of living annually: $59,335
• Unemployment rate for ages 65 and older: 10.6%

In Oregon, seniors face higher-than-average housing costs and a 10.6% unemployment rate for their age group. Some 19.3% of the state’s population consists of seniors, with 30.3% of them active in the workforce. Oregon’s relatively higher housing costs and expenses can be tough on seniors trying to make ends meet on a fixed income.

• Household median income: $91,905
• Average monthly mortgage cost: $4,605
• Average monthly expenditure cost (after mortgage): $2,264
• Total cost of living monthly: $6,869
• Total cost of living annually: $82,428
• Unemployment rate for ages 65 and older: 10.8%

Seniors working in California deal with extremely high costs, especially for housing. The senior unemployment rate here is 10.8%, and the highly competitive job market in its biggest cities does not make things easier.

The high cost of living can quickly drain savings, making it hard for seniors to afford everyday expenses. California has a senior population of 15.8%, with a considerable 34.9% of them still part of the labor force.

• Household median income: $71,646
• Average monthly mortgage cost: $2,613
• Average monthly expenditure cost (after mortgage): $1,922
• Total cost of living monthly: $4,535
• Total cost of living annually: $54,415
• Unemployment rate for ages 65 and older: 16.6%

Nevada might have a lower overall cost of living compared to some states, but it has the highest unemployment rate for seniors at 16.6%. This makes it very hard for seniors to find work. The increasing house prices, especially around Las Vegas, add to the challenge, making Nevada a tough place for seniors needing to earn an income

Nevada has 16.9% of its population aged 65 and over, with 31.6% of these seniors active in the workforce.

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Methodology: For this study, GOBankingRates analyzed each U.S. state to find the worst states for seniors to work in retirement. First, GOBankingRates found some details about each state, including total population, population ages 65 and over, total households and household median income, all sourced from the U.S. Census American Community Survey and the cost-of-living indexes as sourced from the Missouri Economic and Research Information Center. For each state, the cost-of-living indexes are used in conjuncture with the national average expenditure costs for residents ages 65 and over as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for residents ages 65 and over. The average single family home value from June 2024 was sourced from Zillow Home Value Index and by assuming a 10% down payment and using the national average 30-year fixed mortgage rate as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated for each state. Using the mortgage and expenditure costs, the average total cost of living can be calculated. The unemployment rate for residents ages 65 and over was sourced from the U.S. Census for each state to determine the population that is attempting to find work. The unemployment rate was scored and weighted at 2.00, the household median income was scored and weighted at 1.00, and the total cost of living was scored and weighted at 1.00. All the scores were summed and sorted to show the worst places for seniors to work in retirement ages. All data was collected on and is up to date as of August 19, 2024.