West Virginia has been named the cheapest state to retire for the second year in a row.
This is indicated by an annual retirement report of Bank rate.
The report ranks each state based on affordability, quality of health care, climate and the well-being of its residents.
The small state of West Virginia, nestled in the forested Appalachian Mountains, has a low cost of living, low property taxes and affordable home insurance, it found.
Along with West Virginia, most of the most affordable states for retirement are in the South and Midwest.
West Virginia has been named the cheapest state to retire for the second year in a row
Housing costs in West Virginia are 20 percent lower than the national average, according to Bank rateand its effective property tax rate of 0.49 percent is among the lowest in the country.
On average, the cost of living in the Appalachian state is 9 percent lower than the rest of the country, according to property listing site RentCaféwhich is a boost for retirees on fixed incomes.
The state will also phase out statewide taxes on income from Social Security benefits by 2026. NBC Los Angeles reported.
Withdrawals from retirement accounts such as 401(K), IRAs or government pensions will still be taxable, but residents age 65 or older can claim deductions of up to $8,000 per person.
Mississippi was ranked the second most affordable state to retire in, followed by Indiana, Alabama and Georgia.
The Peach State has become significantly more affordable since last year, Bankrate said, because the cost of living in the state has dropped significantly and average homeowners insurance premiums have dropped slightly.
Tennessee ranked sixth in affordability, followed by Oklahoma, Wyoming, Missouri and Kansas.
Low living costs and low property taxes were among the reasons states fell into the cheapest category for older Americans on a fixed income.
But while West Virginia topped the affordability list, it fell to second place in Bankrate’s ranking of the “best” places to retire.
It ranked in the middle of the road for well-being and scored worst of all states in the category of health care quality and cost.
This was due to high health care costs, poor health system performance and fewer health care facilities per 100,000 residents than in other states.
Instead, Delaware was crowned the “best” place to retire in the U.S. overall.
West Virginia, one of the smallest states in the U.S., is situated in the tree-covered Appalachian Mountains.
Housing costs in West Virginia are 20 percent lower than the national average, according to Bankrate
While Florida has traditionally been considered a hotbed for retirees, Delaware took the top spot for 2024 due to its reasonable cost of living, affordable yet high-quality healthcare and low crime rate.
The so-called First Estate has no state or local sales taxes and does not tax Social Security benefits.
Its property taxes are also lower than the rest of the country, averaging $1,940 annually.
“The state ranks well for racial and ethnic diversity, arts and entertainment venues per 100,000 residents and overall well-being. Compared to its population, it also has a high proportion of residents aged 62 and older,” said Bankrate’s Alex Gailey.
“Earthquakes, tornadoes and hurricanes are also rare and the climate is temperate. The state’s weak points are the cost of living, crime and the cost of health care,” Gailey said.
Meanwhile, Alaska was named the worst place for Americans to spend their retirement years for the second year in a row.
Meanwhile, another recent report outlined the fastest-growing retirement locations in the United States, and none are in Florida.
Last year, Arizona was the top destination for seniors. Retiree Darius McLintock clearly explains why life there is great: crime is low, hospitals are excellent, housing is cheap and it rarely rains.