Retiring is a significant milestone in life, much like buying a house or getting married.
Choosing where to spend your golden years is a personal decision that involves financial considerations as well. Factors such as proximity to family, access to amenities like the ocean, affordability, and community atmosphere all play a role in the decision-making process.
Bankrate has created a detailed ranking of the best and worst states for retirement by analyzing various data points for each U.S. state, including living costs, health care expenses, overall well-being, and more. The methodology used for this ranking is consistent with previous years, with states being evaluated based on affordability, overall well-being, health care costs and quality, weather, and crime rates.
Affordability was given the most weight in the ranking, reflecting the financial challenges many Americans face in saving for retirement and coping with the increasing cost of living nationwide.
Bankrate’s Retirement Savings Surveys have consistently shown that most Americans feel unprepared for retirement, while inflation has driven up living expenses, including housing and health care costs. This reality has led many individuals to reassess their retirement plans and seek ways to make their retirement savings last longer.
Key takeaways
- Delaware (1), West Virginia (2), Georgia (3), South Carolina (4), and Missouri (5) are the top five states for retirement in 2024.
- Alaska (50), New York (49), Washington (48), California (47), and North Dakota (46) are ranked at the bottom for the best and worst states to retire.
- Geographically, the top five and bottom five states for retirees are divided. The Midwest and South hold the top spots, while the Northeast and West rank lower, primarily due to differences in the cost of living.
Best and worst states to retire in 2024
Bankrate’s annual Best and Worst States to Retire Study has identified Delaware as the top state for retirees in 2024, followed by West Virginia (2), Georgia (3), South Carolina (4), and Missouri (5).
Delaware has moved up to the first position this year, displacing Iowa, which was the top state last year and has now dropped to ninth place. Iowa’s decline in ranking is mainly attributed to lower scores in the affordability category, which comprises 40% of the overall ranking. Factors such as cost of living, property taxes, and homeowners insurance have all increased in Iowa since the previous year.
In terms of overall ranking, the top and bottom states for retirees are geographically distinct, with the Midwest and South dominating the top positions and the Northeast and West occupying the bottom spots for the second consecutive year, primarily due to cost of living disparities.
Best and worst states to retire in 2024
| Top 5 | Bottom 5 |
|---|---|
| 1. Delaware | 50. Alaska |
| 2. West Virginia | 49. New York |
| 3. Georgia | 48. Washington |
| 4. South Carolina | 47. California |
| 5. Missouri | 46. North Dakota |
Top 5 states for retirees in 2024
Delaware has secured the top spot as the best state to retire in this year. While not traditionally considered a retirement destination, the state’s high well-being and rare natural disasters make it an attractive option. Delaware also excels in racial and ethnic diversity, arts and entertainment establishments, and overall well-being. Its population includes a high percentage of residents over 62. Although the cost of living, crime rate, and healthcare costs are areas of concern, the state’s affordability in terms of property taxes, sales tax, and homeowners insurance is commendable.
Other top states for retirement include West Virginia, known for its affordability but lacking in quality and cost of healthcare. Georgia has seen improved affordability due to a decrease in the cost of living, while South Carolina has also improved in affordability and weather conditions. Missouri stands out for its affordability but struggles with healthcare quality, overall well-being, crime, and natural disasters.
On the other end of the spectrum, Alaska, New York, Washington, California, and North Dakota rank poorly for retirees due to high costs of living, healthcare, and crime rates. Before making a retirement move, experts recommend evaluating your finances, including retirement income sources like Social Security, savings, and assets. Delaying Social Security benefits can lead to higher monthly payments and increased protection against inflation. It’s important to calculate how much more savings are needed for a secure retirement and create a savings plan. Planning for retirement can be complex, so seeking guidance from financial experts like Betty Wang is advisable. Approaching retirement age individuals may find it beneficial to seek guidance from a financial advisor as there are many factors to consider when planning for retirement. In the state of Florida, the cost of homeowners insurance has been on the rise due to three major insurance companies voluntarily discontinuing homeowner insurance policies in the last two years. This trend is contributing to higher premiums for homeowners in the state.
According to retirement expert and author Kerry Hannon, moving towards coastal communities in Florida can also result in higher costs for air conditioning and property insurance, as the state experiences more impacts of climate change.
For those considering retirement in Florida, it is important to note that the state ranks differently in terms of affordability, overall well-being, quality and cost of healthcare, weather, and crime compared to other states. This ranking is based on various data sets analyzed by Bankrate, including factors such as the cost of living index, property taxes, average homeowners insurance costs, healthcare quality and costs, weather patterns, and crime rates.
It is essential for retirees to consider these factors when planning their retirement in Florida, as they can have a significant impact on their overall quality of life and financial well-being.