According to Bankrate’s annual ranking, Delaware has been named the best state to retire in for 2024. The small state moved up from second place behind Iowa in the previous year. Bankrate’s analysis evaluates all 50 states across five weighted categories: affordability (40%), overall well-being (25%), quality and cost of healthcare (20%), weather (10%), and crime (5%).
Delaware’s key advantages include the absence of Social Security benefit taxes and no inheritance or estate taxes. Additionally, Delaware does not impose local or state sales taxes, making it particularly appealing for retirees. However, Delaware ranked 20th in affordability, a factor to consider for those on a fixed income.
The cost of living in Delaware can vary depending on the city. For instance, Wilmington’s cost of living is about 4% higher than the national average, whereas Dover’s is around 2% lower, according to RentCafe. Florida, often perceived as a retirement haven, placed eighth on Bankrate’s list for the second year in a row.
The state’s popularity may have upended the affordability that drove so many retirees there in the first place. Between 2021 and 2022, Florida became the fastest-growing state in the country. Since 2013, home prices in Florida have increased almost 160%, trailing only Idaho in terms of growth.
The average premium on a $300,000 home is $5,533, higher than any other state in the country.
Delaware’s tax appeal for retirees
Florida ranked 37th in affordability, a two-spot slide from last year.
Alex Gailey, lead data reporter at Bankrate who compiled the list, said, “Really the bottom line is that Florida just isn’t as affordable as it once was. Unfortunately, retirees wanting to move to Florida for sunny winters, beaches, and affordable healthcare may have to sacrifice in other areas. Primarily housing and costs associated with housing like homeowners insurance—and overall just the cost of living.
Rounding out the top five states for retirement were West Virginia (No.
2), Georgia (No. 3), South Carolina (No. 4), and Missouri (No.
5). The top five states for retirement were mostly in the Midwest and Southern parts of the U.S., while the five worst states to retire in were in the Northeast and West, Bankrate’s analysis concluded. Researchers attribute the geographic split primarily to differences in the cost of living.
In contrast, Alaska ranks dead last for retirement, as it also did in 2023, according to Bankrate. The state’s low score was driven by poor marks nearly across the board. Other low-ranked states include New York (49), Washington (48), and California (47), all of which were noted for their high costs of living.
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