Delaware has been ranked as the best state to retire in the U.S. based on factors such as affordability, access to high-quality healthcare, overall well-being, and other categories. The state, known as the “First State,” earned the top spot in Bankrate’s annual ranking. Affordability, well-being, access to healthcare, weather, and crime were the key metrics used to rank states, with affordability being the most weighted category at 40% of the overall score. Delaware moved from the No. 2 spot to No. 1 due to its affordability metric, which reflects rising costs of living in the economy.
Cost of living has been a significant concern for Americans, with increases in food prices, home prices, and auto insurance rates. Many Americans are also behind on saving for retirement, with studies showing a lack of adequate retirement savings among workers. Despite its higher cost of living than the national average, Delaware scored well on other affordability metrics. The state has no state or local sales tax, and residents do not have to pay income tax on social security benefits. Delaware’s racial and ethnic diversity and high share of residents who are 62 and older also contributed to its top ranking.
Access to high-quality healthcare is crucial for retirees, as it is one of the biggest costs incurred during retirement. Delaware provides residents with access to good quality healthcare, further enhancing its appeal as a retirement destination. In contrast, Alaska was ranked as the worst state to retire in, with poor marks across the board. Other low-ranked states include New York, Washington, and California, all of which were criticized for their high costs of living. In retirement, being on a fixed income can be stressful when living in expensive states.
The rankings highlight the importance of affordability and access to healthcare when choosing a state to retire in. Delaware’s strong performance in these areas, coupled with other factors like racial diversity and a high share of older residents, make it an attractive destination for retirees. Conversely, states with high costs of living, such as Alaska, New York, Washington, and California, may not be ideal choices for retirees on fixed incomes. Overall, the rankings provide valuable insights for individuals who are considering their retirement options and seeking the best state to spend their golden years in.
