The COVID-19 pandemic ushered in a surge of retirements across the U.S. labor force. Experts estimate that in the first 18 months of the pandemic, there were 2.4 million more retirements than there would have otherwise been. Due in part to the historic increase, an estimated 19.3% of the U.S. population were retired as of mid-2021, the largest share in at least the last 25 years.

The two primary reasons older Americans left the workforce for good in recent months were the health risks posed by the pandemic and rising asset values – particularly in housing and the stock market – that made retirement financially feasible. Indeed, health and financial stability are two of many factors that affect overall quality of life throughout old age. Here is a look at what it costs to retire comfortably in every state.

With retirements at historic levels, 24/7 Wall St. created an index of over a dozen key socioeconomic measures to identify the best and worst states to grow old in. The measures were chosen to gauge the health, financial well-being, safety, and social engagement of 65 and older populations in each state.

Maine has the largest retirement age population in the country. Some 21.3% of the population are 65 and older, compared to 16.5% of the U.S. population. Maine also ranks better than most other states as a place for older Americans to live.

Maine residents – including retirees on a fixed income – benefit from a low cost of living. Goods and services are about 3% less expensive in the state than they are on average nationwide. Maine’s retirement age residents are also more likely to be financially secure than most older Americans. Only 8.5% of the retirement age population live below the poverty line, compared to the national 65 and older poverty rate of 9.4%.

 

Rank	State	Population 65 and older (%)	Avg. annual earnings, 65 and older households ($)	Life expectancy at age 65 (years)
1	Delaware	19.5	63,962	19.2
2	Hawaii	19.0	81,027	21.1
3	Connecticut	17.6	79,202	20.3
4	Utah	11.4	61,313	19.5
5	Maryland	15.9	80,477	19.4
6	Massachusetts	17.0	76,131	19.9
7	New York	16.9	79,339	20.2
8	Washington	15.9	66,581	19.8
9	Colorado	14.7	64,403	20.0
10	Vermont	20.1	54,525	19.8
11	New Hampshire	18.6	62,642	19.5
12	Wisconsin	17.5	46,908	19.5
13	New Jersey	16.6	79,112	19.9
14	Oregon	18.2	54,612	19.7
15	Virginia	15.9	68,435	19.3
16	Minnesota	16.3	53,272	20.0
17	Maine	21.3	48,025	19.1
18	Nebraska	16.1	54,249	19.3
19	Pennsylvania	18.7	59,513	19.1
20	Florida	20.9	60,598	19.9
21	Rhode Island	17.7	69,256	19.5
22	Idaho	16.2	52,216	19.3
23	South Dakota	17.4	48,100	19.7
24	California	14.8	80,459	20.3
25	Iowa	17.5	49,521	19.3
26	Michigan	17.7	52,137	18.9
27	Montana	19.5	48,370	19.5
28	Illinois	16.1	62,797	19.4
29	Wyoming	17.1	52,054	19.0
30	Arizona	18.0	57,469	19.6
31	Ohio	17.5	50,402	18.4
32	North Carolina	16.7	52,481	18.7
33	South Carolina	18.2	51,372	18.6
34	Kansas	16.4	53,081	18.8
35	Alaska	12.4	69,443	19.2
36	Indiana	16.1	51,950	18.3
37	North Dakota	15.8	62,662	19.7
38	Georgia	14.3	59,751	18.4
39	Missouri	17.2	51,940	18.4
40	West Virginia	20.5	45,532	17.6
41	Tennessee	16.7	55,990	17.9
42	New Mexico	18.0	58,485	19.5
43	Texas	12.9	64,589	18.9
44	Alabama	17.4	51,601	17.6
45	Oklahoma	16.1	61,091	17.6
46	Nevada	16.2	56,563	18.7
47	Louisiana	16.0	55,809	17.9
48	Kentucky	16.9	52,989	17.5
49	Arkansas	17.4	47,041	17.9
50	Mississippi	16.4	49,422	17.5

 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.