10 Best, Worst States for Retirement 2024
Bankrate’s new rankings have a new No. 1 while last year’s top state sinks to ninth
Delaware, the second smallest of the 50 states, is the best state for retirement in 2024 according to Bankrate’s annual “Best States to Retire Study,” released in late July. Meanwhile, the biggest state—Alaska—maintained its spot at the bottom of the rankings.
Bankrate’s comprehensive study ranked all 50 U.S. states by affordability (40% of the ranking), overall well-being (25%), quality/cost of health care (20%), weather (10%) and crime (5%).
“The reality is that most Americans feel behind on saving for retirement, which means affordability is critical,” said Bankrate Analyst Alex Gailey. “A move to a more affordable location could be an effective way for soon-to-be retirees to stretch their retirement savings in this economy. If you’re behind on savings and retirement is just a few years away, now’s the time to play catch-up.”
In the overall rankings, the best and worst states for retirees are split geographically. The Midwest and the South claim four of the top six states, while the Northeast and West claim the bottom five states, primarily because of differences in cost of living.
Here’s a closer look at the 10 best states for retirement in 2024, followed by the 10 worst according to Bankrate’s new rankings.
1. Delaware
Moving up from second place last year into the top spot this year, Delaware ranked well in categories such as overall well-being (2nd), weather (8th) and affordability (20th), despite its less favorable rankings in the categories quality/cost of healthcare (39th) and crime (36th).
“Delaware overtook Iowa for the number one spot in this year’s ranking of the best and worst states to retire,” said Bankrate Analyst Alex Gailey. “While Delaware is a pricier state to live in, the state’s high-quality healthcare, light tax burden, affordable homeowners insurance and good weather propelled it to the top spot this year. Delaware also scored well in diversity, wellness and culture and it has one of the nation’s highest percentages of residents 62 and older.”
While Delaware ranked fourth for the amount of adults 62 and older per capita, Bankrate stressed that Delaware is a tax-friendly state for retirees, without a state or local sales tax, and it doesn’t tax Social Security benefits. It also has lower property taxes relative to the rest of the country, averaging roughly $1,939 annually, according to ATTOM data.
NEXT PAGE: Rest of the Top 10
