Report: Nevada among ‘financially distressed’ states
by Lauren WellbankAMG-Parade · Las Vegas Review-JournalWhen it comes time to retire, many Americans look for the perfect mix of circumstances to guide their move. That often means finding a new home with mild winters, a lower cost of living, and plenty of access to top-notch healthcare. However, a new WalletHub report has tracked which states have the most financially distressed residents, and, surprisingly, a retirement hot spot is in first place.
If you’re planning to head South for your golden years, you’ll want to take a look at this report to see if your dream retirement destination has been named a financial nightmare for people who are struggling to stay afloat.
WalletHub Study Names Texas as Having the Most ‘Financially Distressed’ Populations
According to WalletHub, folks living in Texas experienced the most financial stress among residents of all other states in 2025. They included things like credit scores (the state has the 13th lowest in the nation), changes to bankruptcy filings from the previous year (Texas ranked in 6th place here), number of people searching for information on “debts” and “loans” (the Lone Star State fell into 13th and 5th place respectively), to earn itself the top spot.
The report notes that this news is shocking, especially given that the state is the eighth-largest economy in the world. However, four cities in particular were named the most distressed: Houston, Dallas, San Antonio, and Austin. According to the San Antonio Express-News, this isn’t a shock, since this is the second year in a row the state has won the title.
Related: This State Was Just Named the Worst Place To Retire in the U.S.
However, it seems like a higher-than-average poverty rate among older residents could be driving some of the financial strain. The National Council on Aging says that poverty rates among older adults reached 15 percent, with some 9.2 million seniors across the country falling into this group. As our poorest Americans seek financial support by moving to areas with lower cost of living in retirement, it may come as no surprise that some of these regions may see more people struggling as a result.
These Are the Other ‘Financially Distressed’ States
While everything may be bigger in Texas, residents here aren’t the only ones struggling with debt and borrowing. According to the report, these are the top 10 states where people are facing financial challenges… and you may notice a theme:
- Texas
- Florida
- Louisiana
- Nevada
- South Carolina
- Oklahoma
- North Carolina
- Mississippi
- Kentucky
- Alabama
Related: Popular State May Lower the Retirement Age to 55—but There’s a Catch
Several of these states are popular retirement destinations thanks to their mild winters and lower cost of living. In fact, Florida’s second-place spot on the list is a surprising one, especially when you consider that the state’s favorable tax breaks are one of the reasons that people flock to the Sunshine State as soon as they are living on a fixed income. However, it looks like there are bigger factors at play here than just a lower cost of living, since many of these states also report paying lower wages.
According to ZipRecruiter, the average salary in Florida is $50,685, which the employment website ranked as low for the country. Of course, retirees in Florida may not be looking for work, but if they do need to supplement their income, they may not be able to earn as much as they could in other states, which is food for thought for any seniors considering relocating for retirement.