Forget Florida, it’s Delaware that has been ranked as the best state to retire in with its reasonable cost of living, affordable but high-quality healthcare, and low crime rate.
Nicknamed, the First State, Delaware overtook the historic retirement paradise of Florida which last came out top in 2022. Last year, Iowa topped Bankrate’s annual retirement study.
Meanwhile, Alaska has once again been labeled as the worst state for Americans to spend their later years.
The study ranked all 50 states on affordability, overall well-being, quality and cost of healthcare, weather and crime – and found the best and worst states for retirees were split geographically.
Bankrate ranked all 50 states on affordability, overall well-being, quality and cost of healthcare, weather and crime with Delaware topping the list and Alaska ranked bottom
Delaware was ranked second due its high-quality healthcare and light taxes. The state has no state or local sales tax (Pictured: Downtown Wilmington)
The Midwest and the South are among the states with the top five places to live while the Northeast and West are home to the bottom five states, mainly due to differences in cost of living.
Delaware is a particularly tax-friendly state for retirees with no state or local sales tax. The state does not tax Social Security benefits while also offering lower property taxes compared to the rest of country averaging $1,940 annually.
‘The state ranks well for racial and ethnic diversity, arts and entertainment establishments per 100,000 residents and overall well-being. Compared to its population, it also has a high share of residents who are 62 and older,’ said Alex Gailey of Bankrate.
‘Earthquakes, tornados, and hurricanes are also rare, and the climate is temperate. The state’s weaker spots are its cost of living, crime, and cost of health care,’ Gailey explained.
‘While Delaware is a pricier state to live in, it scores well in all other affordability metrics we considered in the ranking: property taxes, combined state and local sales tax and homeowners insurance.’
Rehoboth Beach is one of several Delaware Beaches in eastern Sussex County, Delaware
Delaware also has the lowest rate of poverty among people ages 65 and older in the US.
Following Delaware, West Virginia, Georgia, South Carolina and Missouri are the top five states for retirement in 2024, while New York, California, Washington and Massachusetts rounded out the bottom five.
Following Delaware, the small state of West Virginia ranked second as one of the most affordable in the nation with a low cost of living, low property taxes and affordable homeowners insurance.
It scored poorly for the quality and cost of health care, however, with high healthcare costs, and fewer healthcare establishments per 100,000 residents in the state.
Georgia moved up from 15th to third place on the rankings with the cost of living in the Peach State having fallen significantly over the last year.
The quality and cost of health care in Georgia also improved slightly, but overall well-being and crime scores remained poor this year.
Staying in the Sun Belt, South Carolina became more affordable compared to 2023 rising from 19th to fourth in the rankings.
The state scored highly when it comes to weather while scoring an ‘average’ rating for overall well-being and the quality and cost of healthcare.
In fifth place, Missouri also scored well for affordability, ranking well for cost of living and property taxes.
Affordability carries a 40 percent weight in the rankings. The state struggles with the quality of its healthcare, overall well-being, crime and natural disasters.
Alaska has been labeled as the worst state for Americans to spend their later years (Pictured: Downtown Anchorage)
Meanwhile, it is the second year running that Alaska has been ranked as the worst state to retire – struggling with back-of-the-pack scores in affordability and weather.
New York, California, Massachusetts and Washington rounded up the worst states to retire due to the inflated cost of living in the Northeast and Western US.
‘For many Americans, a comfortable retirement may feel out of reach,’ Gailey said.
‘After battling elevated inflation over the last three years, relocating to find cheaper housing or a lower cost of living may be a good alternative for retirees who have tighter budgets but want to retire comfortably.’
