While some American entering retirement will not move from the state where they may have lived and worked their whole lives, those able to be flexible can benefit from a move.
A new analysis from Bankrate.com has considered several factors in its rankings of all fifty US states, with the affordability the largest metric used (40% of the ranking) followed by overall well-being (25%), quality/cost of health care (20%), weather (10%) and crime (5%).
This year’s study reveals that the concept of the best states to retire is changeable with the top-ranked state in 2023, Iowa, plunging to ninth place in 2024, mostly due to weaker affordability with the cost of living, taxes, and homeowners insurance all higher this year.
Meanwhile, improved affordability and weather helped catapult Georgia and South Carolina into the top five this year, with Missouri also in the top five along with West Virginia, which moved up a spot and also remained top for affordability for the second year in a row.
“The reality is that most Americans feel behind on saving for retirement, which means affordability is critical,” said Bankrate Analyst Alex Gailey. “A move to a more affordable location could be an effective way for soon-to-be retirees to stretch their retirement savings in this economy. If you’re behind on savings and retirement is just a few years away, now’s the time to play catch-up.”
With Iowa losing its top spot, which state has taken its place?
Delaware ranked well in categories such as overall well-being (2), weather (8) and affordability (20), but less so in quality/cost of health care (39) and crime (36). But the overall scores were enough to place it at number one in Bankrate's annual Best States to Retire Study.
“While Delaware is a pricier state to live in, the state’s high-quality healthcare, light tax burden, affordable homeowners insurance and good weather propelled it to the top spot this year. Delaware also scored well in diversity, wellness and culture and it has one of the nation’s highest percentages of residents 62 and older,” explained Gailey.
Meanwhile, the states that flunked the test included Alaska, which received unfavorable rankings in affordability (41), crime (49), weather (50), quality/cost of health care (44), and overall well-being (26) to be ranked the worst state to retire. New York, Washington, California, North Dakota complete the bottom five.
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