Delaware, the first state to ratify the U.S. Constitution in 1787, has now been named the best state to retire, according to a new report. Though not typically seen as a retirement destination, a Bankrate analysis found Delaware offers the best balance of affordability, climate, and cultural amenities.
“Delaware is more expensive to live in, but its high-quality healthcare, light tax burden, affordable homeowners insurance, and good weather make it the top choice this year,” said Bankrate Analyst Alex Gailey. Another advantage: Delaware has a high percentage of residents aged 62 and older, providing a strong community for retirees.
Bankrate’s 2024 rankings were based on five criteria: affordability, overall well-being, quality and cost of healthcare, weather, and crime. West Virginia ranked second overall due to its top-notch affordability, though it ranked last in healthcare.
Georgia and South Carolina improved their positions to third and fourth, respectively, thanks to better affordability. Missouri rounded out the top five with its low cost of living. Florida, often seen as a prime retirement spot, came in eighth. The state’s high homeowner’s insurance costs and potential for rising electric bills were noted as drawbacks.
On the other hand, states with high living costs like Alaska, New York, Washington, and California were ranked the worst for retirement. Alaska ranked lowest for the second consecutive year, struggling with affordability, healthcare, weather, and crime.
California, with some of the highest taxes and housing costs in the nation, placed 47th overall and last in affordability. A separate Bankrate analysis revealed that potential homeowners need nearly $200,000 annually to afford a typical home in California, with figures rising to around $380,000 in cities like San Francisco and San Jose.
For healthcare, western states fared better. Idaho, Colorado, Washington, Utah, and Oregon topped Bankrate’s list for quality and cost of medical care. According to a 2023 Fidelity analysis, the average 65-year-old can expect to spend about $157,500 on healthcare during retirement.