Retirement Retirement Planning

10 States Where Retirees Can't Afford to Stop Working (Is Yours One?)

States where retirement doesn't mean leaving the workforce.

By Anna Armstrong , Edited by Amanda Machado

Updated April 6, 2026

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Retirement might have been a clear-cut exit from the workforce some years back, but this is no longer the case. In certain states, older adults need to stay employed well past their retirement age to sustain themselves. If you're making your retirement plan, it helps to know which states these are, so you can better prepare.

Below, we look at the 10 states with the highest rate of older adults working past age 65.

Editor's note: Rates come from FinanceBuzz's study, and all COLI (Cost of Living Indexes) and property data come from World Population Review and Realtor.com, unless otherwise stated.

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North Dakota

Rate: 25.7%

North Dakota has one of the lowest COLIs, at 91.4. Still, the state has an older-adult working rate of 25.7%, which is 3.3% higher than the national average of 22.4%.

Retirees might keep working despite the low cost of living because they receive relatively low Social Security payments, with the median at $1,794.70. The median rent sits at $1,100 a month, so they may need to return to the workforce to manage monthly bills.

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Nebraska

Rate: 26.1%

Despite having a relatively low COLI of 92.6, Nebraska has a higher-than-average rate of retirees in the workforce. This might be attributed to several factors.

One, Social Security payments are at a median of $1,879.70, which may not be enough to cover living expenses. Two, the state's median rent and property taxes are $1,500 a month and 1.44%, which are high for people relying on a fixed income.

Connecticut

Rate: 26.5%

Connecticut's high rate of working retirees may be attributed to the state's high COLI. With an index of 112.7, it's one of the most expensive places to live.

The state also imposes partial taxes on retirement income. Single filers with an AGI (adjusted gross income) above $75,000 and joint filers with an AGI above $100,000 are subject to taxes on their Social Security benefits for the 2025 tax year.

This tax has previously reduced retirees' incomes. However, with the state scheduling a phase-out in 2026, the situation might change for some.

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New Jersey

Rate: 26.8%

With a COLI of 115.1, New Jersey is among the most expensive states in the U.S., especially for retirees. Its high cost of living is partly attributable to high housing and property costs. The median rent is $2,630 a month, and it has the highest effective property tax rate in the country (1.88%).

Maryland

Rate: 26.8%

Maryland's COLI is 15.4% higher than the national average. This could be the reason many seniors continue to work post-retirement. As with many states, the cost of living is partly due to high housing costs. The state's median rent is $2,200 a month, its median home price is $405,000, and its property tax rate is 0.92%.

Maryland also supports older adults seeking employment opportunities through the Maryland Department of Labor (MD Labor) Senior Community Services Employment Program (SCSEP). The program offers training to prepare residents for job seeking.

District of Columbia

Rate: 27.0%

The District of Columbia has the fourth-highest COLI in the country, 38.8% higher than the national average. Unfortunately, this doesn't match the state's median Social Security payment: $1,696.

With median rent at $2,600 a month and home prices at $550,000, older adults in the state may have no choice but to work to supplement their retirement income.

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Massachusetts

Rate: 27.2%

With a median home and rent price of $690,000 and $3,000 a month, it's not surprising that Massachusetts's COLI is 41.2% higher than the national average. This, coupled with the state's relatively low median Social Security payment of $1,946, might explain why many retirees rejoin or never leave the workforce.

South Dakota

Rate: 27.6%

South Dakota's Social Security payments are relatively low, with a median of $1,780. Residents in the state might be going back to work to supplement their income.

The state is also facing a labour shortage, with 0.5 job seekers per job opening, as of December 2025, according to the BLS. Older adults may be going back to work to help fill existing gaps.

Vermont

Rate: 28.6%

Vermont has a COLI of 113.6, a median rent of $2,000 a month, and a median home price of $495,000. It also has the fourth-highest effective property tax rate, of 1.51%, despite its Social Security payment being quite low at a median of $1,883.15.

Further, the state taxes most retirement income, including some Social Security benefits. This might be why many of its older residents are still working.

New Hampshire

Rate: 28.6%

Older residents in New Hampshire might be working after retirement to manage the state's high costs. With an index of 111.4, New Hampshire's COLI is well-above the national average. The state also has the fifth-highest property tax rate of 1.50% in the U.S. This could significantly impact retirees who rely on Social Security, forcing them to seek additional income.

Bottom line

Post-retirement years should be a season for rest, time with loved ones, and hobbies. Unfortunately for residents in states with high COLIs, this isn't always possible. To reduce the need to rejoin the workforce after retirement, research and implement smart money moves for seniors. The right strategies can help you stretch your retirement income for longer.

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