While relocating for retirement is not the best decision for every person approaching that milestone, moving is something that individuals may want to consider as they come closer to retiring. A lot of factors need to be considered when thinking about where to retire, which is a very personal choice. Some people prefer to be close to family or within communities where they have close ties, while others may prefer a place that is close to the ocean or mountains. Another retiree may want a location with the best tax advantages or with easy access to public transportation to eliminate the expenses associated with vehicle ownership. Understanding what you need to be happy in retirement is key to choosing the best location. While this is a very personal decision, it can be helpful to see comparisons of different locations to get you thinking about the points to consider.
The 2024 Bankrate List of Best and Worst States to Retire
Recently, Bankrate released its 2024 list of the best and worst states to retire. This list takes into account affordability, cost and quality of healthcare, weather, crime rates, and overall well-being as reported by people who live there. While these factors will vary for each individual, Bankrate chose to weigh affordability most heavily to reflect the challenges that many Americans face with the rising costs of living across the country and retirement savings accounts that will not stretch quite as long as they were likely hoping. With inflation rates still historically high, the increased expenses associated with daily living are not likely to drop anytime soon, so affordability tends to be the biggest concern for people currently retired or planning to retire in the near future.
The Ideal States for Retirement, According to Bankrate
Some people were surprised to find that Delaware took the top spot for states to retire in this year. While Delaware is not typically thought of as a retirement destination, it has a number of selling points, including the fact that there are no state or local taxes and no taxes on Social Security benefits. Furthermore, property taxes are lower than in many other states, which makes it a good choice for retirees. Bankrate also took into account the overall diversity of the states and the wide availability of arts and entertainment when making its decision. The temperate climate and low rates of weather events also make Delaware attractive for retirees. One downside to Delaware is the high cost of living, but this is balanced by the lack of taxes and other benefits, including very affordable insurance.
The other states in the top five include West Virginia, Georgia, South Carolina, and Missouri. West Virginia has the lowest cost of living in the entire nation, along with low property taxes and affordable insurance. Unfortunately, the state has high healthcare costs and a poor healthcare system with relatively few facilities. Georgia is also an affordable state with a cost of living that has recently fallen significantly and improved quality and cost of healthcare compared to previous years. However, its scores for well-being were fairly low. South Carolina also scored high in terms of affordability, as well as the weather. The state’s score for well-being was average, as was the cost and quality of healthcare. Crime was the primary concern for the state. Missouri also ranked high due to its affordability in terms of low taxes and the cost of living. The downside is that natural disasters and crime were a significant problem.
The Bottom States to Retire In
Learning more about the lowest states on the list can also prove helpful. Because affordability was weighted so heavily this year, states in the Northeast and West with a high cost of living ranked quite low. For example, New York ranked 49th, Washington placed 48th, and California was 47th. Alaska came in last place for the second year in a row due to its high cost of living and bad weather, not to mention high crime rates. In addition, Alaskans struggle with access to healthcare, which is quite expensive. The 46th place was taken by North Dakota, which has many of the same problems as Alaska, although to a lesser degree. Again, it is important to take these rankings with a grain of salt considering that one’s place of residence is a very personal decision.
As you consider where you might want to retire, remember to account for the cost of relocation, which can also have an impact on making the right choice. Often, relocating does not make sense, especially if you already live close to family or have not been preparing for the associated expenses. Consider which things you value the most when choosing a place to live. Perhaps a high cost of living is not a barrier and so you good weather and access to healthcare might be weighted more heavily. On the other hand, perhaps you have some chronic health conditions, so access to affordable and high-quality healthcare is most important. You may want to take the time to look at the Bankrate listings to get a better idea of how they weighted each factor and to figure out how you would adjust the weighting for your own preferences.
In recent years, an increasing number of Americans have looked overseas for retirement locations. In many of these locations, the cost of living is much lower than in the US, and health care and high speed internet and other attributes, such as arts/culture/transportation/safety/etc, are also very favorable. Some popular choices in the overseas retirement category are Costa Rica, Panama, Ecuador, Portugal, and Thailand, to name a few. Of course, there is more research and work involved in deciding to retire overseas.