If you’re planning ahead in preparation for the golden years of your life, then you might want to know that Delaware is the best state to retire in. Bankrate conducted a study to determine the best and worst states to retire by considering aspects like living costs, health care costs, and other elements that would factor into an individual retirement strategy. Each state has different legal systems and benefits that it offers to its occupants, which alters the retirement conditions that are available to them.
The cost of living in popular cities is quite high and retiring in a populated city can hurt in the long run when it begins to demand too much of your savings from day to day. This is why it is beneficial to consider the top retirement destinations and plan ahead to buy a home and retire in regions that align with the benefits you desire in the future.
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Wondering About the Best State to Retire? Delaware Sounds Like a Safe Bet
Bankrate’s latest study on the top retirement states in the U.S. found Delaware to be the best option, followed by West Virginia, Georgia, South Carolina, and Missouri. These five states were determined by a ranking based on five prime elements that individuals consider while retiring: affordability (40 percent), overall well-being (25 percent), the cost and quality of health care (20 percent), weather (10 percent) and crime (5 percent).
Each category was weighted differently as they had varying degrees of importance in an individual’s decision to move there. These are the primary considerations for many folk who want to find an affordable space for themselves while also keeping in mind the considerations of old age, such as the impact of the weather on their health and the safety and security of the region.
Last year, the same categories were used to chart the top retirement destinations and Iowa had ranked on top. Delaware, West Virginia, Missouri, and Mississippi held the other four spots on the list. Iowa appears to have slipped from the ranking, but the other four stops on the list still appear to be going strong.
The retirement ranking has a lot to do with its affordability, providing citizens with the option of sustaining a reasonable lifestyle despite the rising cost of living in the country as a whole. From rising food prices to the increased challenges with seeking health care, affordability carries a lot of weight.
West Virginia is the best option for retirement when it comes to affordability, but its healthcare system did not hold up too well in the ranking. The state also topped the nation in workplace sexual harassment claims earlier this year, so there are a couple of different factors to consider. Delaware isn’t the best choice for affordability, but it has other benefits when it comes to handling the larger expenses.
What’s the Reasoning Behind Delaware’s Retirement Ranking?
The state is more tax-friendly, with no state or local sales taxes, and no taxes on Social Security benefits either. Property taxes are also relatively low for those who want to remain homeowners post-retirement. Iowa primarily slipped down the list due to the rise in the cost of living, property taxes, and homeowners insurance over the last year.
Delaware also has a diverse population in terms of ethnicity, along with a more homogenous senior crowd for retirees who want to live in a community.
It is also interesting to note that earlier this year, we learned that Delaware was among the best places to work in terms of having the shortest workweek. This ensured that Delawareans were able to prioritize their happiness by finishing work earlier and enjoying some leisure time to recuperate, making it an ideal place to work as well.
We Also Have a Ranking of the Worst States to Retire
While Delaware’s retirement ranking is a good sign for those approaching their retirement, on the other end of the spectrum, the Bankrate list also categorized the worst states to retire. This included North Dakota, California, Washington, and New York, with Alaska at the bottom of the list. The cost of living in these well-populated cities is extremely high and while it does have a lot of potential for earning a living in a multitude of fields, it doesn’t necessarily support an individual who is set to retire soon.
“In our overall ranking, the best and worst states for retirees are split geographically. The Midwest and the South claim the top five states, while the Northeast and West claim the bottom five states for a second year in a row, primarily because of the differences in cost of living.”
—Bankrate
Retirement is something of a sensitive topic for Gen Xers, the first of who will begin to retire next year. Due to their limited savings and the fear over the unavailability of funds for social security benefits in the coming years, many have stated that it would take a miracle for them to retire. As such, it might be a good time to start strategically planning for retirement, not just in terms of how to save money right now, but also where they would prefer to spend their retired days.
