America’s top states for older workers

Instead of riding off into the sunset, an unprecedented number of seniors are stuck riding into the proverbial office. A record 11.6 million Americans ages 65 and older are part of the U.S. workforce, up 132% from 4.9 million in 2004, according to the Bureau of Labor Statistics (BLS).

This trend is driven by many factors. The population is aging and with improved longevity many older adults can be productive for longer and keep working because they enjoy it.

Meanwhile, AI is unexpectedly fueling demand for older workers. Unlike previous tech revolutions, AI is stealing entry-level jobs faster than jobs that require decades of judgement. Employers recognize experienced workers are more likely to notice when AI hallucinates

Ultimately, millions of seniors are forced to keep working to keep the lights on. A recent Goldman Sachs survey found 58% of Americans think they will run out of money before their time is up as the cost of living, housing and healthcare have risen. 

The CareScout Cost of Care Survey released in March, shows assisted living facilities cost $6,200 per month and private nursing home rooms average $10,798. These payments are steep even for affluent families and impossible for the nearly one in five seniors who already live below 150% of the federal poverty line, Census data shows.

Given these trends, the Department of Labor projects that older adults will see faster labor force growth than any other age group in the years ahead, which is why seniors are increasingly factoring employment opportunities into their decision of where to retire.

To determine America’s Top States for Older Workers in 2026, CareScout analyzed six metrics in all 50 states and D.C.: labor force participation, income, age discrimination rates, remote work flexibility, income taxes and new business growth. The most recent data from the BLS, Census Bureau, Tax Foundation and Equal Employment Opportunity Commission was analyzed. The complete methodology is at the bottom.

• Record 11.6 Million Seniors are in the U.S. Workforce: Up 132% from 2004 and projected to reach 14.6 million by 2034.
  

• New Hampshire No. 1 Top State for Older Workers: Driven by a 0% income tax rate, second-best labor participate rate among seniors (36.1%), third-fewest incidents of age discrimination (18 complaints per 100,000 older workers), and 11th highest median income for senior households ($67,530).
  

• Top 10 States are in the West and East Coast: New Hampshire, Alaska, Maryland, Utah, Connecticut, Colorado, Wyoming, Massachusetts, Vermont, and Virginia.
  

• Mississippi Ranked in Last Place: The nation’s lowest median income among older households ($44,031), third-highest age discrimination rates (188 complaints per 100,000), and third-fewest seniors working remotely (8.5%).

New Hampshire ranks No. 1 due to a low rate of age discrimination (18 complaints per 100,000 workers aged 45+, No. 3) and strong labor force participation among older adults (36.1%, No. 2). Paired with its high income for older workers ($67,530, No. 11) and the fact that it has no personal income tax, it’s no wonder New Hampshire tops the list.

The rest of the top five states span the country: No. 2 Alaska, No. 3 Maryland, No. 4 Utah and No. 5 Connecticut. They are all high-income states with strong labor force participation among older Americans – though Connecticut does have high personal income taxes (6.99% top rate, No. 40) and Marylanders are more likely to report age discrimination (107 complaints per 100,000 workers ages 45+, No. 35).

Mississippi ranks last, driven by its low household income among older adults ($44,031, No. 51), low labor force participation among older people (26.6%, No. 45) and high rate of age discrimination (188 complaints per 100,000 workers ages 45+, No. 49).

No. 50 Arkansas, No. 49 West Virginia, No. 48 Alabama and No. 47 Louisiana rounded out the bottom five. They tended to score poorly on the same metrics – though West Virginia ranked 13th on age discrimination complaints, with just 44 per 100,000 older workers. There were also some bright spots in new business growth, with a 20.9% annual increase in Arkansas (No. 11).

Compare how the top- and bottom-ranking states stack up across the six key metrics we used to determine the states where older workers are thriving most.

Age discrimination: Measures how frequently older workers report age-based discrimination. States with lower complaint rates signal a more respectful, inclusive environment for experienced employees.

Labor force participation: Tracks the share of adults 60 and older who are actively working or seeking work. Higher rates suggest a state where older adults have real, ongoing opportunities in the labor market.

Household income: Reflects the earning power of older households. Higher incomes indicate that seniors in a given state are better positioned to cover rising living and care costs.

Remote work: Captures how many older workers have flexible, location-independent jobs. A higher share points to greater autonomy and a labor market that accommodates the needs of older employees.

Income tax: Represents the maximum rate at which a state taxes personal income. Lower rates mean workers keep more of what they earn.

New business growth: Measures how quickly new businesses are forming in a state. Stronger growth signals a dynamic economy with expanding opportunities for entrepreneurs and job seekers of all ages.

1. Don't mistake income for security. A paycheck keeps the lights on, but it won't absorb a $6,000-a-month assisted living bill or an unexpected medical crisis. The time to plan is before you need care, not during.

2. Help Protect what you've earned. For anyone still building wealth in their later working years, protecting it is just as important as growing it. Long-term care insurance can help to shield hard-earned savings from the kind of emergency that might undo years of financial progress in a matter of months.

3. Take the guesswork out of care planning. Navigating aging care options, either for yourself or a loved one, can feel overwhelming. A CareScout Care Plan pairs you with a licensed nurse who creates a personalized plan covering the type of care, equipment and support that makes sense for your specific situation.

4. Bring in a financial planner. Long-term care is one piece of a much bigger puzzle. For your retirement income strategy, Social Security timing and tax planning, an independent certified financial planner is invaluable.

5. Start the conversation. The most common mistake isn't making the wrong plan, it's making no plan at all. Whether someone is 55 or 75, still working or newly retired, the next right step is simply to get started.

Check out how your state fares across the key metrics here.

Where you live and work in your later years carries real financial weight, especially as care costs rise and savings face mounting pressure. The states that ranked highest here offer genuine advantages for older workers – but the right location is only one piece of the puzzle. Knowing your hard-earned money is protected and your care future is mapped out matters just as much.