10 States That Are Great for Older Workers

Many Americans age 60 and older who are working have discovered they can have it both ways. They are finding communities where they can work while also enjoying their chosen surroundings.

This can mean living somewhere with natural beauty, as Holben does, or among a group of active aging individuals or in areas known for entrepreneurship.  

Top 10 states for older workers

Based on the Seniorly methodology, the 10 best states for older workers are:

1. Washington
2. New Hampshire
3. Alaska
4. Maryland
5. Colorado
6. Connecticut
7. Massachusetts
8. South Dakota
9. Utah
10. Vermont

Remote work opens opportunities

One factor contributing to longer careers is the rise in remote work, according to the Center for Retirement Research at Boston College, which reports that a person working remotely may stay employed for about a year longer than an otherwise similar individual. This allows the older person to stay fulfilled professionally and delay dipping into their savings, says Geoffrey T. Sanzenbacher, a professor of economics at Boston College and a research fellow at the retirement research center.

“This group of seniors has an advantage relative to prior ones,” Sanzenbacher says. “Remote work has really been normalized by the pandemic, and that doesn't seem to be going anywhere.”

Healy adds her father became an online teacher in his mid-50s during the 1990s. 

“It’s a very exciting time for older adults in the workforce,” says Healy. “For certain jobs, you can work from anywhere.”

That desire for flexibility is espoused by older workers AARP interviewed.

Susan Wheaton, 60, runs a freelance public relations firm out of her home in Martha’s Vineyard, Massachusetts. She and her husband can’t yet afford to retire but currently live comfortably. “I'm fortunate at this stage to be able to work with people I want to work with,” says Wheaton. “I couldn't imagine not working, because I've got a pretty good balance.”

States with no income taxes can be appealing

Older Americans who have saved more also have more choices about where and how to live.

Kim Webley, a 67-year-old “serial entrepreneur” in Seattle, says he doesn’t have to worry about his retirement portfolio run by a financial adviser. The income he earns serving on the board of directors at FileOnQ, a software platform he owned for 28 years before selling it last year, often goes toward investing in start-up groups.

David Conti, 64, a financial writer and retirement coach in Hampton Falls, New Hampshire, built a strong 401(k) in his more than 17 years working at Fidelity that’s allowed him flexibility after taking a buyout in late 2021. His departure package included health care, eliminating a potentially prohibitive cost. Without that worry, he was able to launch his business after failing to get past the finalist stage several times during his job hunt.

“If you can figure out the health care expense, you're well on your way to having more latitude to start a business and do your own thing,” Conti says. 

New Hampshire, Washington and Alaska are among nine states that don’t tax income, a factor considered important by Olivia S. Mitchell, an economist and professor at the University of Pennsylvania’s Wharton School. “I would recommend that people wishing to work past age 60 consider state unemployment rates, personal income and sales tax rates, and cost of living — lower is better, as a rule,” she says. “Finding employers who provide health insurance would be an obvious plus, as well as safer locations with public transportation and good health care systems.” 

Conti explains that lower cost is part of the Granite State’s overall appeal, where amenities like high-speed internet and insurance are more affordable. “Our state motto is ‘Live free or die,’” he says. “It's always been a fairly pro-business community.”

Attracting older workers

A city’s business culture can also be desirable to older workers. Webley says paying it forward is common in Seattle, “an incubator” city that’s home to Google, Amazon, Microsoft and others. That spirit attracts active older individuals like Webley, who is phasing into retirement. He says he continues working because he feels he has not accomplished all he wants to.

Likewise, Sheela Murthy, a lawyer and member of the Maryland Chamber of Commerce’s Hall of Fame, could have retired years ago. But Murthy, 63, kept her practice, based in the Baltimore region, even after choosing to split time between Maryland and Jacksonville, Florida, because “we’re so close to incredible talent.” She says the proximity to government agencies and academic institutions like Johns Hopkins University and the University of Maryland is integral to the firm’s success.

Murthy also credits the state’s commerce department for its efforts to attract and maintain leaders like her. “They're very adamant about helping companies stay in business and stay in Maryland,” she says.

Passion for a community remains a powerful draw for older workers. “We live here because I love it,” says Wheaton of Martha’s Vineyard.

Webley offers a similarly basic reason. “It’s a beautiful place to live,” he says. “Outdoors is a big thing for Seattleites. I still run and go to the gym. About 20 percent of the people at the gym are about my age.”

Like-minded clusters can gravitate together, perhaps as proof of the adage that birds of a feather flock together. Like Holben, Cherie Stoddard, 80, found creative inspiration among St. George’s famed red rocks upon moving to Southern Utah from Georgia 27 years ago. Stoddard, who previously was a professional photographer, runs an art co-op that hosts 12 older local artists. It became more than a job after her husband’s death three years ago.

“This got me out of the house and helped me get through that time of my life,” she says. “I’ve worked all my life. I would be bored. That’s the truth of the matter.”