New estimates from the 2025 Elder Index demonstrate that the cost of living in Massachusetts has increased substantially in recent years for older adults, especially for renters. The Elder Index, which is compiled by the Center for Social & Demographic Research on Aging within the UMass-Boston Gerontology Institute, measures the necessary costs faced by households made up of one or two older adults, calculated county by county for the entire United States.
As in past years, the Massachusetts Elder Index remains among the highest in the nation, reflecting a cost of living that impacts the economic security of older adults. Despite the high cost of living for older adults in the Commonwealth, the report notes the recognition of state leaders in addressing economic challenges.
For example, in May 2025, the state released an updated five-year age- and dementia friendly state plan, ReiMAgine Aging 2030, built around six goals developed through community listening sessions across the Commonwealth. Economic Opportunity & Security, ensuring every older individual can meet their basic financial needs, stands as the plan’s first goal. Along with these promising commitments, the Commonwealth is taking steps to strengthen the support available for older residents who are struggling financially. Among the most significant recent state actions, Massachusetts expanded eligibility for the Medicare Savings Program in 2024 by eliminating the asset test and raising income limits. They also increased the maximum property tax abatement for seniors performing volunteer services to $2,000 per year. Other initiatives, such as those
focusing on expanding the availability of affordable housing and expanding access to home care, may have an impact on remediating the hardship posed by economic insecurity moving forward, according to the report.
The Elder Index measures the costs faced by households that include one or two adults aged 65 or older living independently. The Elder Index defines economic security as the income level at which older adults are able to cover basic and necessary expenses to live in their homes, without relying on means-tested income support programs, loans, or gifts. The Elder Index is calculated for every county in the United States; statewide and national averages are also produced. Elder Index expenses include housing, food, transportation, health care, and other essentials such as clothing and cleaning supplies. The Elder Index is a basic budget, allowing no vacations, restaurant meals, savings, gifts, or entertainment.
More information, reports, and detailed economic security data for all counties across the country are available here.