Rising costs have people worried about retirement
A survey by AARP is showing retirees are worried they do not make enough money to afford their retirement.
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More than one quarter of seniors live alone, according to Census data. And living solo can present financial perils for Americans of any age.
A new report from the senior care platform Caring.com ranks the best states for over-65 Americans who live alone. The report assigned a 1-10 score to each state, based on more than a dozen qualities, including overall living costs, housing costs, grocery costs, transportation costs, healthcare costs and availability, and the proximity of other seniors.
“Living alone can be a challenge for older people, from increased safety concerns to the toll on their mental health,” the report states.
Here’s what the analysis found.
These neighboring states rank 1-2-3 for solo senior living
Three middle-of-America states, Arkansas, Missouri and Kansas, rank first, second and third for solo senior living in the Caring.com report.
Arkansas, with a rating of 8.57 out of 10, has one of the lowest cost-of-living scores in the nation, with affordable housing and low property taxes. It ranks high for affordable transportation and available nursing facilities.
Missouri (8.09 out of 10) ranks high for health care affordability and quality. The state also ranks high on assisted living, with 97.5 communities per 100,000 senior residents.
Kansas (7.98) ranks favorably for overall cost of living and has some of the nation’s lowest grocery prices. It also has the second-highest proportion of nursing facilities, 62.7 per 100,000 seniors.
Arkansas also ranks 1st in affordability for solo seniors
Arkansas is not just the “best” state for solo seniors, but also the most affordable, the Caring.com analysis found. Arkansas has the lowest health care costs among states, as well as low grocery prices and affordable rents. A one-bedroom apartment averages $701 a month.
Missouri ranks second for senior affordability, with low rents and transportation costs.
Oklahoma ranks third in affordability. The Caring.com analysis includes data from GOBankingRates, whose calculations found Oklahoma one of the most affordable states for retirees.
Maine ranks 1st for highest proportion of seniors
Seniors can face loneliness and isolation, especially when they live alone.
But not, perhaps, in Maine. The state has the highest proportion of seniors, compared with other states: 22.9%, according to Caring.com.
Missouri ranks 1st for cheap rent
Seniors often live on fixed incomes. Lower housing costs can help make ends meet.
Missouri has the nation’s most affordable rents for one-bedroom apartments, with an average of $677 a month.
Pro tip: St. Louis is more affordable than Kansas City, with rents averaging about $200 lower.
Iowa ranks 1st for availability of nursing facilities
With a relatively low over-65 population, Iowa ranks first among states for its proportion of nursing facilities, 71 per 100,000 seniors.
More nursing facilities potentially means shorter wait times for Iowans who need nursing care.
Alaska ranks 1st for availability of assisted living
Alaska, too, has relatively few seniors. The state also has the highest proportion of assisted living communities, a whopping 698 per 100,000 over-65 residents.
Missouri has the least expensive assisted living
The costs of long-term care can be eye-popping. An assisted living facility charges $5,350 a month, on average, according to T. Rowe Price.
Missouri has the lowest annual costs for assisted living, averaging just over $40,000, according to Caring.com. The state’s low cost of living reduces operating costs for assisted living facilities.
West Virginia ranks 1st on ‘comfortable’ retirement
Getting back to GOBankingRates: The personal finance site analyzed every state for annual retirement costs and found West Virginia the most affordable in its 2024 report, with an annual tab of $58,190. The report factored into the Caring.com ranking.
What are the worst states for solo retirement living?
While the Caring.com report doesn’t rank the least desirable states for seniors who live alone, the analysis provides a heat map that gives a good idea of which states a cost-conscious senior might want to avoid.
Not surprisingly, the “worst” and least affordable states for solo seniors tend to fall on the East and West coasts. California and Massachusetts have some of the lowest overall scores. The same states rank poorly on affordability.
More on affordable states for retirees
Seniors who are looking for a good place to retire may also want to consult GOBankingRates, whose analysts have run the numbers many times on affordable states for retirees.
In one recent analysis, the site calculated how long a nest egg of $1.5 million would last for a retiree in every state.
That report identified five most affordable states for retirees: West Virginia, where $1.5 million will last 54 years; Kansas (52 years); Mississippi (51 years); Oklahoma (also 51 years); and Alabama (50 years).
California and Massachusetts ranked among the priciest states for retirees in the report, along with New York, Alaska and Hawaii.
