Workers age 65 or older don’t have to stop working for a living to make way for someone younger. In fact, that’s what a growing number of working seniors, with no immediate plans of retirement, have decided to do – some with more state government support than others.
According to the U.S. Bureau of Labor statistics, a record 10.6 million Americans age 65 and older are currently employed. By 2030, the bureau says, that number is expected to increase to 16 million, with workers age 75 and older expanding by 96.5%. Whether these aging taxpayers need to work or just love the job, their needs change as they grow older. Some state governments are stepping up to the challenge of helping them remain in the workplace, while others are stepping back.
seniorly.com, an adult housing search platform, ranked each state, comparing data from the U.S. Census Bureau, the Centers for Disease Control and Prevention (CDC), and the Tax Foundation across five categories: labor force participation; median household income; median state income tax rate; median state income tax rate; average life expectancy from birth; and percentage of people 65 and older covered by Medicare. The lower each state’s overall score, the higher its ranking.
Here, in ascending order, are the top 10 best states for older workers.
10. Nebraska
Warren Buffett makes his home in Nebraska, and so can fellow seniors pursuing their own careers. Nebraska seniors pay a median state income tax rate of 4.3%; have an average life expectancy of 79.1 years; 96.6% receive Medicare coverage; and 20.4% of them are part of the state’s work force, with nearly half (48%) earning a salary of $50,000 or more a year. Overall Score: 101.
9. Virginia
Virginia seniors pay a median state income tax rate of 4.0%; have an average life expectancy of 79 years; almost universally receive Medicare coverage at 95.6%; and 18.4% of them are part of the state’s labor force, with over half (54.8%) earning a salary of $50,000 or more a year. Overall Score: 98.
8. Hawaii
Hawaii seniors pay a median state income tax rate of 7.4%; have an average life expectancy of 81 years – the highest of the study; almost universally receive Medicare coverage at 95.2%; and 20.9% of them are part of the state’s labor force, with two-thirds (63.6%) earning a salary of $50,000 or more a year – the highest percentage of the study. Overall Score: 96.
7. Colorado
Thanks to Colorado voters and state government, qualifying seniors now get a state property tax exemption that was passed into law two decades ago. Colorado seniors pay a median state income tax rate of 4.6%; have an average life expectancy of 80 years; almost universally receive Medicare coverage at 95.8%; and 18.7% of them are part of the state’s labor force, with over half (55%) earning a salary of $50,000 or more a year. Overall Score: 92.
6. North Dakota
North Dakota seniors pay a median state income tax rate of 2.3%; have an average life expectancy of 79.3 years; almost universally receive Medicare coverage at 96.5%; and 20.4% of them are part of the state’s labor force, with nearly half of them (47.1%) earning a salary of $50,000 or more a year. Overall Score: 87.
5. Vermont
Vermont seniors pay a median income tax rate of 7.1%; have an average life expectancy of 79.3 years; almost universally receive Medicare coverage at 97.4%; and 22.7% of them are part of the state’s labor force, with over half (51.5%) earning a salary of $50,000 or more a year. Overall Score: 85.
3. Washington (tie)
Washington levies no state income tax. Its seniors have an average life expectancy of 80 years; almost universally receive Medicare coverage at 95.5%; and 15.7% of them are part of the state’s labor force, with over half (54.8%) earning a salary of $50,000 or more a year. Overall Score: 82.
3. Alaska (tie)
This popular tourist destination levies no state income tax. Alaska seniors have an average life expectancy of 78 years; almost universally receive Medicare coverage at 94.9%; and 19.4% of them are part of the state’s labor force, with almost two-thirds of them (58.6%) earning a salary of $50,000 or more a year. Overall Score: 82.
2. South Dakota
This Midwestern tax haven has no state income tax, no inheritance tax, and no capital gains tax. South Dakota seniors have an average life expectancy of 78.9 years; almost universally receive Medicare coverage at 95.6%; and 22% of them are part of the state’s labor force, with almost half (48.2%) earning a salary of $50,000 or more a year. Overall Score: 69.
1. Wyoming
Wyoming has affordable home prices, levies no state income tax, and has plenty of job opportunities for working seniors. Wyoming seniors have an average life expectancy of 78.1 years; almost universally receive Medicare coverage at 98.2%; and 17.6% of them are part of the state’s labor force, with half (50.2%) earning a salary of $50,000 or more a year. Overall Score: 64.
