A study conducted by the personal finance publisher Moneywise analyzed 11 factors to determine which states put elderly U.S. citizens, those over the age of 65 years old, at the greatest risk of bankruptcy.
The study determined each state’s risk of bankruptcy by assigning each state a risk score out of 100 based on factors such as poverty rates, debt-to-income ratios, health care expenses, and overall cost of living. In the study, bankruptcy is defined as a situation in which an individual’s income and assets are insufficient to cover their expenses or repay their debts.
California poses the greatest danger to the financial health of its elderly population, with a total risk score of 69.72. It is followed by Alaska at 66.74 and Massachusetts at 65.92.
Wisconsin was ranked the third-safest with a risk score of 25.94. Just over 1% of Wisconsin seniors are below the bottom 50% of the poverty line, and health care costs are 4% cheaper than the national average at $9,900 per capita.
The state was beaten out only by Iowa at No. 1 and Nebraska at No. 2, with risk scores of 19.95 and 24.79, respectively.
