The best state to retire in 2024 is also one of the smallest in the U.S.
At around 96 miles long and 35 miles wide, Delaware ranks as the No. 1 state to retire this year, according to Bankrate's list of the best states to retire for 2024. Last year, it placed second behind Iowa on Bankrate's list.
To compile the ranking, Bankrate analyzed 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.
Bankrate evaluated all 50 states across five weighted categories:
- Affordability (40%): Includes factors such as cost of living and state and local sales tax rates
- Overall well-being (25%): Looks at factors such as the number of arts and entertainment centers and the number of adults over 62
- Quality and cost of health care (20%): Considers factors such as the number of health-care establishments and the cost of health care
- Weather (10%): Evaluates the average annual temperature and average number of tornado strikes, earthquakes and hurricane landfalls
- Crime (5%): Includes factors such as the number of violent crimes and property crimes
Here are the 10 best states to retire in 2024, according to Bankrate.
Money Report
Iowa, last year's No.1 state to retire, was knocked down to ninth place this year, mainly due to the rising cost of living in the state. Florida, often considered a retirement hotspot, placed eighth on Bankrate's list for the second time in a row.
One of Delaware's biggest potential perks for retirees is its tax benefits. The state does not tax benefits from Social Security and does not have an inheritance or estate tax. Delaware is also one of the few states with no local or state sales taxes.
Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly Chicago Catch-Up newsletter.
However, Delaware ranked 20th for affordability, which may be a consideration for retirees who live on a fixed income.
The cost of living in Delaware is about 1% higher than the national average, but that can vary depending on which city you live in, according to RentCafe. The cost of living in Wilmington is about 4% higher than the national average, while Dover's cost of living is about 2% lower, per RentCafe.
Remember, although a location's affordability can be a significant factor when choosing where you want to retire, it is important to take numerous other personal factors into consideration as well. Ask yourself what kinds of activities you will want access to during retirement, the type of climate you most enjoy and whether you want to live close to your family.
Want to stop worrying about money? Sign up for CNBC's new online course Achieve Financial Wellness: Be Happier, Wealthier & More Financially Secure. We'll teach you the psychology of money, how to manage stress and create healthy habits and simple ways to boost your savings, get out of debt and invest for the future. Start today and use code EARLYBIRD for an introductory discount of 30% off through Sept. 2, 2024.
Plus, sign up for CNBC Make It's newsletter to get tips and tricks for success at work, with money and in life.
