Delaware Named Best Place to Retire

Delaware takes the top spot as the best state for retirement in 2024, according to Bankrate’s annual ranking.

Why it matters: Choosing where to retire is a significant financial and personal decision that can greatly impact quality of life in one’s golden years.

The details:

• Bankrate’s ranking is based on affordability (40%), overall well-being (25%), health care cost and quality (20%), weather (10%), and crime (5%).
• Delaware benefits from tax-friendly policies, such as no state or local sales tax and no income tax on Social Security benefits.
• The state also scores well on racial and ethnic diversity, arts and entertainment options, and overall well-being.
• Despite higher costs of living and health care, Delaware’s other affordability metrics remain favorable.

The top five states for retirement in 2024 are primarily situated in the Midwest and South, while the bottom states are located in the Northeast and West, highlighting significant regional differences in cost of living.

The top five:

• Delaware
• West Virginia
• Georgia
• South Carolina
• Missouri

The bottom five:

• Alaska
• New York
• Washington
• California
• North Dakota

Experts recommend considering several factors before relocating for retirement, including:

• The state of your finances
• Living costs
• Health care quality
• Climate
• Community and lifestyle
• Safety

The big picture: As the cost of living continues to rise and many Americans struggle with retirement savings, affordability remains a critical factor for retirees when choosing where to settle down.

Full story

Delaware has been named the best place to retire in the United States, according to Bankrate’s annual assessment of the best states for retirees. Known as the “First State,” Delaware climbed from its No. 2 position in 2023 to the top spot this year, surpassing Iowa.

Bankrate’s ranking is based on scores across five key metrics: affordability, overall well-being, access to high-quality health care, weather, and crime. Affordability weighed the most heavily, accounting for 40% of each state’s overall score. Well-being was worth 25%, access to health care 20%, weather 10%, and crime 5%.

“Delaware moved from No. 2 to No. 1 because of the affordability metric,” said Bankrate analyst Alex Gailey.

“It carries the heaviest weight to reflect what’s been happening in the economy, with the cost of living rising as much as it has.”

In addition to its strong affordability scores, Delaware benefits from several favorable tax policies. The state has no state or local sales tax, and residents do not have to pay income tax on social security benefits. These factors, combined with the state’s high-quality healthcare access, racial and ethnic diversity, and a significant share of residents who are 62 and older, propelled Delaware to the top of the list.

“If you’re looking for community in your older years, it’s easier to find those people in Delaware,” Gailey noted. Having access to good quality health care is also critical for many retirees, as it is one of the biggest costs incurred in retirement.

Delaware tops list for retirees

Following Delaware, the top five states for retirement are West Virginia (No. 2), Georgia (No. 3), South Carolina (No.

4), and Missouri (No. 5). All these states scored well on affordability and other metrics important to retirees.

Conversely, the five worst states to retire were found in the Northeast and West, primarily due to the higher cost of living in these regions. Alaska ranked at the bottom for the second consecutive year, driven by poor marks across several categories. Other low-ranked states include New York (49), Washington (48), and California (47), primarily due to their high living costs.

“The common thread is they are expensive states to live in,” Gailey explained. “In retirement, you’re on a fixed income, and it can be jarring and stressful to see your retirement savings going down.”

Despite Delaware’s appealing ranking, many Americans are behind on saving for retirement. A recent Prudential Financial survey revealed that only those aged 55 and up have $447,000 or more in retirement savings.

Additionally, a study on Generation X-ers’ preparedness found that half of those surveyed felt they would need a “miracle” to retire. As the cost of living continues to rise, with notable increases in food prices and home prices, affordability remains a critical factor for retirees when choosing a place to settle down.