The best state to retire in 2024 is also one of the smallest in the U.S.
Approximately 96 miles long and 35 miles wide, Delaware is the No. 1 retirement state this year, according to Bankrate’s list of the best states to retire in 2024. Second only to Iowa.
To compile the rankings, Bankrate analyzed data from multiple sources, including the Tax Foundation, the Council for Community and Economic Research, the U.S. Census Bureau and the National Oceanic and Atmospheric Administration.
Bankrate evaluated all 50 states in five weighted categories:
- Affordability (40%): Includes factors such as cost of living and state and local sales tax rates
- Overall happiness (25%): Consider factors such as the number of arts and entertainment centers and the number of adults over 62
- Quality and Cost of Healthcare (20%): Consider factors such as the number of medical institutions and medical costs
- Weather (10%): Evaluate average annual temperatures and the average number of tornado strikes, earthquakes, and hurricane landfalls
- Crime (5%): Including factors such as the number of violent crimes and property crimes
Here are the 10 best states to retire in 2024, according to Bankrate.
Iowa, the top-ranked retirement state last year, fell to ninth this year, largely due to rising costs of living in the state. Florida, often considered a retirement hotspot, ranks eighth on Bankrate’s list for the second consecutive time.
One of Delaware’s biggest potential benefits for retirees is its tax benefits. The state does not tax Social Security benefits and does not impose inheritance or estate taxes. Delaware is also one of the few states without a local or state sales tax.
However, Delaware ranked No. 20 Affordability, which may be a consideration for retirees living on a fixed income.
According to RentCafe, the cost of living in Delaware is about 1% higher than the national average, but this may vary depending on which city you live in. According to RentCafe, the cost of living in Wilmington is about 4% higher than the national average, while the cost of living in Dover is about 2% lower.
Keep in mind that while the affordability of a location may be an important factor when choosing where to retire, it’s important to consider many other personal factors as well. Ask yourself what activities you would like to participate in during retirement, what kind of climate you would like best, and whether you would like to live close to family.
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