5 States Where Seniors Are Best Positioned To Cover Rising Costs
Whether you're nearing retirement or looking much further down the road, it helps to know where in the U.S. is the best place to settle down for your golden years.
However, if you're still working (or want to work after you "retire"), it's important to understand where your money will best cover the growing cost of living, housing and healthcare.
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As CareScout mentioned in its recent study, "Higher incomes indicate that seniors in a given state are better positioned to cover rising living and care costs." Given this, you would think that the states with the highest median household incomes among older adults would top its list. However, its findings told a different story.
Where Are Seniors Best Positioned To Cover Rising Costs
According to the U.S. Census Bureau, the District of Columbia (D.C.) has the highest median household income among U.S. states across all age groups. However, Hawaii's 65-year-and-older population easily earn the most.
Using six metrics -- labor force participation, income, age discrimination rates, remote work flexibility, income taxes and new business growth -- CareScout found some states much more accommodating to older Americans concerned with rising costs, despite how much they make.
Here's how the Census Bureau's top five states in median household income among 65 and up workers fared against CareScout's yardsticks.
5. California
Median household income among older adults: $71,673 (per U.S. Census Bureau)
CareScout Ranking: 22
News flash: California is one of the most expensive states in the U.S. While its older workers make the fifth highest income in the U.S., the Golden State has the highest personal tax rate (the maximum rate at which a state taxes personal income), at 13.3%. California had the third highest cost of living in the U.S. in the first quarter of 2026, according to Missouri Economic Research and Information Center (MERIC) data.
4. New Jersey
Median household income among older adults: $72,905
CareScout Ranking: 12
New Jersey had a high personal tax rate of 10.75%, which was tied with D.C. for the fourth highest in the country, per CareScout. A dense population has lead to intense competition for jobs and housing across all age groups, and NJ's property tax paid as a percentage of owner-occupied housing value is the highest in the U.S., per Tax Foundation.
3. Alaska
Median household income among older adults: $74,308
CareScout Ranking: 2
CareScout ranked Alaska the second best state in the U.S. for older workers (6.2% of Alaska's labor population in 2023, per the Alaska Beacon) and praised the state's impressive numbers when it came to personal income tax (0%), new business growth (#2 overall) and household income (#3).
2. Maryland
Median household income among older adults: $75,539
CareScout Ranking: 3
Along with Alaska, Maryland was the only other state that rated in the top five states in household income among older adults and CareScout's measures, in particular its top placing in labor participation among adults over 65 (36.3%).
1. Hawaii
Median household income among older adults: $91,390
CareScout Ranking: 17
Yes, the median household income among adults over 65 in Hawaii is over $91,000. On account of being one of the least affordable states in which to live, Hawaii attracts a lot of ultra-wealthy individuals who can actually afford the lifestyle. However, CareScout's ranking of #17 is due to its high taxes (50th), low business growth (40th) and remote job rates (38th).
For those wondering, CareScout's top five states for older workers were New Hampshire, Alaska, Maryland, Utah, and Connecticut. The bottom five states included Mississippi, Arkansas and West Virginia.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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