Delaware has been named the top state for retirement in Bankrate’s 2024 Best States to Retire study. The Mid-Atlantic state scored high in residents’ well-being and weather, all while maintaining affordability.
Delaware offers a desirable lifestyle with a higher percentage of older Americans, moderate climate, and reasonable cost of living. Factors such as low state and local sales taxes and affordable home insurance contribute to its high ranking.
Affordability is crucial for retirees, especially those on fixed incomes. A significant number of Americans cite lack of retirement funds as a key reason for financial insecurity, according to Bankrate’s 2023 financial freedom survey.
Bankrate analyst Alex Gailey emphasizes the importance of affordability for retirees in today’s economy, suggesting that a move to a more cost-effective location can help stretch retirement savings.
Even without a top-tier retirement plan, retirees can enjoy a fulfilling retirement in Delaware without breaking the bank.
Why is Delaware the best state to retire in?
Delaware secured the top spot in Bankrate’s 2024 Best States to Retire study, excelling in various factors such as:
- Affordability (40 percent): Delaware ranked 20th, considering property taxes, sales tax, homeowners’ insurance, and cost of living index.
- Well-being (25 percent): Delaware ranked second, based on factors like older adult population, community well-being, diversity index, and recreational establishments.
- Quality/cost of health care (20 percent): Delaware ranked 39th, factoring in health care cost, facilities, and system performance.
- Weather (10 percent): Delaware ranked eighth, considering natural disaster frequency and average temperature.
- Crime (5 percent): Delaware ranked 36th, based on crime rate.
Delaware’s high-quality health care, low tax burden, affordable insurance, and favorable weather contributed to its top ranking this year. The state also scored well in diversity, wellness, and culture, with a significant older population.
Well-being in Delaware
Delaware excelled in the well-being category, ranking second overall. The state boasts a significant older population, diverse community, and ample recreational opportunities.
With about 25.5 percent of the population aged 62 and older, Delaware offers a vibrant community for retirees. The state also provides a variety of arts, entertainment, and recreation establishments, ranking 13th in this category.
Delaware’s racial and ethnic diversity is notable, with the state ranking 15th for diversity in the population. This diversity adds to the cultural richness of the state.
In terms of community well-being, Delaware ranked 18th, reflecting the overall satisfaction and wellness of its residents.
Weather conditions in Delaware
Delaware enjoys moderate weather conditions, with cold winters and hot summers moderated by the Atlantic Ocean. The state ranked well in average temperature and frequency of natural disasters.
With an average annual temperature of 56.6 degrees Fahrenheit, Delaware ranked 16th in this category. The state also performed admirably in the natural disasters sub-category, ranking third.
Delaware’s weather offers a comfortable environment for retirees seeking a balance between seasonal changes and stability.
Affordability in Delaware
Despite not leading in affordability, Delaware offers a reasonable cost of living compared to other states. Factors like property taxes, insurance costs, and sales tax contribute to its affordability.
In the fourth quarter of 2023, Delaware ranked 33rd in cost of living, with expenses slightly above the national average. The state’s median home price and other living costs are relatively affordable for retirees.
Delaware’s attractive property tax rates, low homeowners’ insurance premiums, and absence of state sales tax make it an appealing choice for retirees on a budget.
Factors to consider before moving to Delaware
While Delaware offers many benefits for retirees, it’s essential to consider factors like health care quality and crime rates before making a decision to relocate. These aspects may impact the overall retirement experience.
Quality of health care
Delaware’s health care ranking was its weakest point in the study, coming in 39th overall. Considering the importance of health care in retirement planning, this factor should not be overlooked.
Delaware’s health care costs per capita are relatively high, with room for improvement in affordability. Access to health care facilities, while adequate, could be enhanced to better serve the aging population.
Understanding the state’s health system performance is crucial for retirees, as health care expenses are a significant part of retirement budgeting.
Crime rates in Delaware
Delaware’s crime ranking was moderate, with the state ranking 34th overall. While crime rates are below average, it’s important to consider safety and security when choosing a retirement destination.
Delaware’s violent and property crime rates are within reasonable limits, but vigilance is advised to ensure a secure living environment for retirees.
Affordability in Delaware
Retiring in Delaware offers financial advantages beyond the affordability index. With below-average home costs, low insurance expenses, and favorable tax policies, retirees can enjoy a comfortable lifestyle without overspending.
Calculating your budget for housing and daily expenses is crucial when planning a move to Delaware. Take advantage of the state’s cost-effective living conditions to maximize your retirement savings.
Key statistics about retirement
- Approximately 62 percent of Americans consider retirement as part of the American Dream, based on an April 2023 Bankrate study.
- The top financial regret for Americans is not saving enough for retirement, with 21 percent acknowledging this, according to a July 2023 Bankrate study.
- 41 percent of financially insecure Americans attribute their situation to inadequate retirement savings, as per Bankrate’s 2023 financial freedom survey.
- More than 80 percent of American retirees prioritize health as the key factor for a happy retirement, according to an AgeWave study.
- Fidelity Investments recommends retirees to have approximately eight times their annual salary by age 60, although individual spending habits and retirement quality can impact this figure.