Retirees have long headed to Florida for its sun and affordability, but Bankrate’s latest survey reveals that the best state to retire in is actually a smaller but cooler place on the East Coast—Delaware.
Despite being pricier than many other states, Delaware has snagged the top spot this year, dethroning Iowa which fell to the ninth spot due to rising costs.
Bankrate considered several factors for each state, including affordability, overall well-being, healthcare quality and cost, weather, and crime rates.
Delaware stands out for its high-quality healthcare, manageable taxes, and affordable homeowner insurance. It also boasts good weather and a diverse population, making it attractive for retirees.
While not perfect in all aspects, Delaware’s lack of state and local sales tax and no tax on Social Security benefits contribute to its affordability.
Aside from Delaware, the top retirement states are located in the Midwest and South, known for their affordability. The top five states to retire in the U.S. are:
- Delaware
- West Virginia
- Georgia
- South Carolina
- Missouri
Last year’s rankings included Iowa, West Virginia, Delaware, Missouri, and Mississippi in the top five. West Virginia excelled in affordability, while Georgia saw a significant rise due to decreased living costs and homeowner insurance premiums.
Conversely, Alaska, New York, Washington, California, and North Dakota were labeled the worst states to retire in. States in the Northeast and West are characterized by high living costs, posing a challenge to retirees.
As many Americans struggle with retirement savings, affordability is crucial. Moving to a more cost-effective location could help retirees make their savings last longer, especially in a challenging economy. It’s important to plan ahead and secure a comfortable retirement.