Retirement is a significant milestone in life, and choosing where to spend one’s golden years is a crucial decision. Factors such as cost of living, health care costs, overall well-being, weather, and crime play a significant role in this choice. To help individuals understand their options, Bankrate has compiled a comprehensive ranking of the best and worst states for retirement.
In 2024, Delaware is ranked as the best state for retirement, followed by West Virginia, Georgia, South Carolina, and Missouri. On the other hand, Alaska, New York, Washington, California, and North Dakota are ranked as the worst states for retirement. The geographical split between the best and worst states is notable, with the Midwest and the South claiming the top five spots, while the Northeast and West claim the bottom five, primarily due to differences in cost of living.
Delaware, the top-ranked state, is a tax-friendly state for retirees, with no state or local sales tax and no taxation of Social Security benefits. It also has lower property taxes and a temperate climate. However, it scores lower in cost of living, crime, and cost of health care.
The remaining top five best states to retire are West Virginia, Georgia, South Carolina, and Missouri. Each of these states has its strengths and weaknesses, but affordability carries a 40% weight in the ranking, which is why they are ranked high.
The bottom five states for retirement are Alaska, New York, Washington, California, and North Dakota. These states are expensive and have high costs of living, health care, and crime rates.
When considering a retirement move, six factors should be considered: the state of your finances, sense of community, cost of living, quality, cost, and proximity to health care, taxes, and climate. It’s essential to prepare your finances, test out the community, consider the cost of living, understand the quality and cost of health care, consider taxes, and think about the climate before making a decision. Seeking professional help from a financial advisor may also be beneficial.
