When you think about retirement, you might picture sunny Florida, with its warm climate and retirement communities. But it’s not the best state to retire, according to a new report from Bankrate, which just issued its annual ranking of the best states to retire in the U.S.
To create the comprehensive analysis, Bankrate used data from several sources, including the Tax Foundation, the Council for Community and Economic Research, the U.S. Census Bureau and the National Oceanic and Atmospheric Administration. States were evaluated across five categories, including affordability (40%), overall well-being (25%), quality and cost of health care (20%), weather (10%) and crime (5%).
The winner? Delaware—one of the smallest states in the U.S.—was named the best state to retire in 2024. This is up one spot from 2023, when it ranked number two. So why did it win this year? Delaware offers a variety of benefits that make it attractive to retirees. A big draw: Delaware has a tax-friendly environment. The state doesn’t tax Social Security benefits and doesn’t have an inheritance or estate tax. Additionally, Delaware is one of the few states with no local or state sales taxes, making it financially appealing to residents on a fixed income. But it’s worth noting that Delaware ranks 20th for affordability—since the cost of living is about 1% higher than the national average.
Some other things going for Delaware include lower property taxes, a high number of residents who are 62 and older, a temperate climate and a low level of natural disasters like earthquakes, tornados and hurricanes. The state also does well when it comes to racial and ethnic diversity, arts and entertainment and overall well-being. Other negatives (besides the cost of living) include crime and the cost of health care.
Following Delaware, West Virginia claimed the second spot on the list due to its affordability. The state has a low cost of living, low property taxes and affordable homeowners insurance (though it scores lower in the quality and cost of healthcare).
Georgia took third place. Even though it struggles with overall well-being and high crime rates, the Peach State’s lower cost of living and low cost of homeowners insurance contributed to its rise on the list (it ranked number 15 in 2023).
South Carolina ranked fourth, make a big leap up from 19th place last year, thanks to improved affordability and favorable weather. However, the state faces challenges with high crime rates.
Missouri rounded out the top five. It made the list thanks to affordability metrics such as cost of living and property taxes. But a downside: It has had difficulties with health care quality, overall well-being, crime and natural disasters.
This year, Iowa—which was the best state to retire in 2023—dropped to ninth place due to higher costs of living.
Surprisingly, Florida—which is often synonymous with retirement—remained in eighth place for the second year in a row. This serves as a reminder that while affordability is crucial, factors like activities, climate and proximity to family are also significant when choosing a retirement location.
Alaska remained the least favorable state for retirees, ranked 50th for the second consecutive year. It was hindered by poor scores in the following categories: affordability, health care quality, weather and crime.
The second lowest ranked state for retirement was New York, followed by Washington, California and North Dakota.
An interesting trend emerged from the Bankrate report—a geographical split. The Midwest and South featured prominently among the top retirement destinations, while the Northeast and West coast dominated the bottom ranks due to higher living costs.
Read on for the results of the annual list of the nest places to retire in the U.S.; the Bankrate list also ranks the states in terms of affordability, quality and cost of healthcare, wellbeing, weather and crime.
The 50 Best States To Retire In 2024
- Delaware
- West Virginia
- Georgia
- South Carolina
- Missouri
- Mississippi
- Pennsylvania
- Florida
- Iowa
- Wyoming
- Alabama
- Nebraska
- Kansas
- Idaho
- Virginia
- Illinois
- Hawaii
- Oregon
- Tennessee
- Wisconsin
- Kentucky
- South Dakota
- Indiana
- Arkansas
- New Mexico
- Ohio
- North Carolina
- Montana
- Maine
- Rhode Island
- Connecticut
- Utah
- Louisiana
- Oklahoma
- New Jersey
- Arizona
- Michigan
- New Hampshire
- Vermont
- Nevada
- Minnesota
- Texas
- Maryland
- Colorado
- Massachusetts
- North Dakota
- California
- Washington
- New York
- Alaska
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