According to an August 2026 report, New York retirees struggle financially the most in the country. A new study released by legal experts at The Elder Justice Firm compared cost of living, retiree incomes, and housing cost pressure to map the states where it’s the hardest for retired residents to afford a comfortable living.
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New York retirees struggle the most financially, with high cost of living and a median household income of $59.9K for residents aged 65 years and older.
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Retirees suffer the most from poverty in Louisiana, with 14.9% of residents aged 65+ not making the minimum income.
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Massachusetts has the highest cost of living in the country, at 40.5% above the national average.
The study ranked 50 US states, excluding the District of Columbia and Puerto Rico, based on four key affordability factors. The research considered cost of living (with a national average of 100), median income for households with residents over 65, as well as poverty rates among the elderly. Housing cost burden was also taken into account, calculated as the share of households that are headed by a resident aged 65 or older and that spend 30%+ of income on housing. All these factors were measured equally in the final score, which highlights the states with the most financial challenges for retirees.
Here’s a quick look at states where retirees experience the most financial difficulties:
|
State
|
Cost of Living Index
|
Median HH Income 65+ ($)
|
65+ Poverty Rate (%)
|
65+ Housing Cost Burden (%)
|
Composite Score
|
|
New York
|
124.7
|
59.9K
|
14.0
|
42.1
|
100
|
|
California
|
140.5
|
71.7K
|
11.8
|
43.6
|
83
|
|
Massachusetts
|
147.8
|
69.1K
|
10.8
|
40.1
|
74
|
|
Louisiana
|
91.1
|
47.3K
|
14.9
|
29.5
|
74
|
|
Rhode Island
|
111.2
|
59.3K
|
11.3
|
39.7
|
68
|
|
Florida
|
100.7
|
60K
|
12.0
|
38.5
|
65
|
|
Mississippi
|
86.2
|
44K
|
14.4
|
26.3
|
64
|
|
Oregon
|
109.6
|
60.4K
|
10.8
|
37.6
|
58
|
|
Kentucky
|
92.5
|
46.7K
|
13.0
|
26.9
|
55
|
|
New Mexico
|
89.9
|
54.5K
|
14.0
|
27.1
|
53
|
You can find the ranking for all 50 states by following this link.
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New York
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Cost of living index: 124.7
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Median household income: $59.9K for households with residents over 65
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Poverty rate among residents 65+: 14%
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Housing cost burden for retirees: 42.1%
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Final score: 100/100
In New York, retirees struggle the most financially, with the cost of living 24.7% higher than the national average. At the same time, household income for people aged 65+ is among the lowest in the top 10, at $59.9K. This leads to 42.1% of households with elderly people struggling with housing and paying over a third of their income on rent or utilities.
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California
California ranks 2nd, and here the cost of living is the second-highest in the country, 40.5% higher than the national average. Elderly households paying a third or more of their income for housing are a bit more common than in New York, with 43.6%, and 11.8% of California’s older residents live in poverty.
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Massachusetts
Massachusetts takes third place as the most expensive state to live in. Residents here have to spend almost 50% more than the average American, and 4 in 10 elderly households struggle with housing costs. Compared to other states, Massachusetts manages elderly poverty a bit better, but still, 1 in 10 residents aged 65+ are living without sufficient means.
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Louisiana
In fourth place is Louisiana, where 14.9% of elderly residents live in poverty, the highest share in the top 10. This is happening despite lower living costs, 8.9% below the national levels. Income levels are also among the lowest, at $47.3K for households with elderly residents.
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Rhode Island
Rhode Island also joins the list of states where retirees struggle the most financially. It records high living costs (11.2% above national levels) and widespread housing pressure, with almost 40% of households led by elderly residents spending more than a third of their income on housing. Poverty levels among residents 65+ are just a little lower than in California, at 11.3%.
A financial expert from The Elder Justice Firm commented:
“The financial picture for elderly residents in these states isn't just uncomfortable, but it's shortening lives. NCOA research found that older adults in the bottom 20% of wealth die an average of nine years earlier than those in the top 20%, and mortality rates among the bottom 60% are nearly double those of the wealthiest quartile. As the current data stands, in 2026, poverty steals almost a decade of older Americans' lives.”
