Forget Florida, Delaware has been ranked the best state to retire with its reasonable cost of living, affordable yet high-quality healthcare, and low crime rate.
Dubbed the First State, Delaware surpassed historic retirement haven Florida, which last held the top spot in 2022. Last year, Iowa topped Bankrate’s annual retirement study.
Meanwhile, Alaska has once again been labeled the worst state for Americans to spend their later years.
The study ranked all 50 states in terms of affordability, overall well-being, health care quality and cost, climate and crime, and found that the best and worst states for retirees were geographically divided.
Bankrate ranked all 50 states in terms of affordability, overall well-being, quality and cost of health care, climate and crime, with Delaware topping the list and Alaska in last place.
Delaware ranked second due to its high-quality health care and low taxes. The state has no state or local sales taxes (pictured: downtown Wilmington)
The Midwest and South rank among the top five states to live, while the Northeast and West are home to the bottom five states, largely due to differences in cost of living.
Delaware is a particularly tax-friendly state for retirees, as it does not levy state or local sales taxes. The state does not tax Social Security benefits, while also offering lower property taxes compared to the rest of the country, averaging $1,940 annually.
“The state ranks well in terms of 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 Alex Gailey of Banking fee.
“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.
‘While Delaware is a more expensive state to live in, it scores well on all of the other affordability metrics we considered in the ranking: property taxes, combined state and local sales taxes, and homeowners insurance.’
Rehoboth Beach is one of several Delaware beaches in eastern Sussex County, Delaware.
Delaware also has the lowest poverty rate among people age 65 and older in the U.S.
After Delaware, West Virginia, Georgia, South Carolina and Missouri are the top five states for retirement in 2024, while New York, California, Washington and Massachusetts round out the bottom five.
After Delaware, the small state of West Virginia ranked second as one of the most affordable in the country, with a low cost of living, low property taxes and affordable home insurance.
However, it performed poorly on health care quality and cost, with high health care costs and fewer health care facilities per 100,000 residents in the state.
Georgia moved from 15th to third in the rankings as the cost of living in the Peach State has dropped significantly over the past year.
The quality and cost of health care in Georgia also improved slightly, but overall well-being and crime rates remained low this year.
Staying in the Sun Belt, South Carolina became more affordable compared to 2023, moving up from 19th to fourth in the rankings.
The state scored highly when it came to climate, while earning an “average” rating for overall well-being and the quality and cost of health care.
Fifth, Missouri also scored well in affordability, ranking well for cost of living and property taxes.
Affordability is weighted at 40 percent in the ranking. The state has issues with the quality of its health care, general well-being, crime and natural disasters.
Alaska has been ranked as the worst state for Americans to spend their later years (pictured: downtown Anchorage)
Meanwhile, it’s the second year in a row that Alaska has been ranked the worst state to retire, struggling with lagging scores in affordability and climate.
New York, California, Massachusetts and Washington are among the worst states to retire due to the high cost of living in the Northeast and Western United States.
“For many Americans, a comfortable retirement can seem out of reach,” Gailey said.
‘After battling high inflation for the past three years, moving to find cheaper housing or a lower cost of living can be a good alternative for retirees who are on tighter budgets but want to retire comfortably.’