Located on the East Coast of the United States, one state is known for its picturesque landscapes, rich history and vibrant community. With a unique mix of urban and rural areas, it offers an exceptional quality of life to its residents, including those enjoying their retirement years.
The state is characterized by its low population density compared to other northeastern states, providing a quiet and cozy environment. In addition, it has a significant cultural diversity, which makes it an attractive place for people of all ages. In 2024, this state was recognized as the best place for retirement in the United States, according to Bankrate’s annual survey.
A Paradise for Retirees in One of the Smallest States in the USA
This state offers a number of advantages for retirees looking for a place to spend their golden years. Among the most prominent benefits are the absence of state and local sales taxes, as well as the exemption from income tax for social security benefits.
We are talking about the state of Delaware, where its characteristics make life more affordable for elderly residents. In addition, Delaware has excellent access to high-quality healthcare, a crucial factor for those who are retiring and looking to maintain good health. The state’s racial and ethnic diversity, along with a high percentage of residents over the age of 62, also contributes to an inclusive and welcoming environment for retirees.
Why Delaware Is the Best State to Retire in 2024
Bankrate ranked the states based on five key metrics: affordability, overall well-being, access to health care, climate, and crime. Affordability had a significant weight, accounting for 40% of each state’s total score, reflecting its importance to most retirees. General well-being accounted for 25%, access to high-quality medical care 20%, climate 10% and crime 5%.
According to Gailey, Delaware moved from second to first place thanks to the affordability metric. It is the one that has the most weight to reflect what has been happening in the economy, with the rising cost of living.
Tax and Healthcare Benefits for Retirees in Delaware
Despite the fact that the cost of living in Delaware is higher than the national average, the state stands out in other affordability metrics. The absence of sales taxes and the exemption from income tax for Social Security benefits are clear examples of tax policies that benefit retirees.
The state’s racial and ethnic diversity and its high percentage of residents over the age of 62 were also important factors that landed it at the top of Bankrate’s list. In addition, access to high-quality health care is a
Retirees Facing Growing Cost-Of-Living Costs
Since 2019, food prices have risen sharply, and Americans are now increasingly spending a higher proportion of their income on food compared to the last 30 years.
A June analysis by CoreLogic showed that home prices increased by 5.3% between April 2023 and April 2024. In addition, car insurance increased by 19.5% year-on-year in June, according to the latest Consumer Price Index (CPI) data.
At the same time, Americans are facing significant challenges regarding how to save for retirement amid rising living costs. Only one in five workers age 55 and older has $447,000 or more in retirement savings, according to Prudential Financial’s 2024 Pulse of the American Retiree Survey.
Another independent analysis concluded that half of Gen Xers said they needed “a miracle” to be able to retire with enough savings.