CA Ranks Among Worst States To Retire In: Study

The Golden State ranked among the worst states to retire in 2026, according to a new analysis by CareScout, which evaluated all 50 states and Washington, D.C., by looking at affordability, quality of life and health care metrics.

The study found that the states with the highest costs of living, heaviest tax burdens and poorer aging health outcomes are the worst places for retirees to be.

While California didn't rank as the single worst state overall, it was grouped among states where retirees face affordability pressures and other cost-related challenges.

New Jersey, for the second year in a row, ranked as the worst overall, weighed down by one of the nation’s highest costs of living and a top personal income tax rate of 10.75 percent, despite having the highest average Social Security income in the country at $29,562.

CareScout’s analysis comes as the number of Americans ages 65 and older continues to grow rapidly. A record 61.2 million people were 65 or older in 2024, representing about 18 percent of the U.S. population. At the same time, many older adults are facing financial strain, with surveys cited in the study showing some retirees cutting back on essentials or delaying retirement due to rising costs.

In the Bay Area, one of the states most unaffordable regions, about 22 percent of retirees reported struggling to pay bills, according to a 2025 poll by the Bay Area News Group and Joint Venture Silicon Valley.

Maureen Spranza of San Ramon told the Mercury News that she had marked her retirement with a party in August 2024. But by December 2025, she was back at work as high costs made retirement unworkable. The 60-year-old now holds three jobs, the newspaper reported.

“I’m not surprised by California’s ranking. Everything is so expensive,” Spranza said.