Delaware Dethrones Florida as the Best State to Retire in 2024

The sun is setting on Florida's reign as the top retirement destination, as a new contender has emerged - Delaware. According to Bankrate's 2024 rankings of the best states to retire, the small East Coast state has climbed to the number one spot, knocking Florida down to 8th place. Harli Marten / Unsplash

To compile the rankings, Bankrate analyzed data across five key categories: affordability, overall well-being, quality and cost of healthcare, weather, and crime.

While Florida has long been a retirement mecca, it seems the state has lost some of its luster, falling behind Delaware in critical areas. Betty Subrizi / Unsplash

One of the key factors propelling Delaware to the top of the best retirement destinations list is its tax-friendly environment for seniors. According to the report, the state offers a number of significant tax benefits that can be a major draw for retirees.

Perhaps most notably, Delaware does not tax income from Social Security benefits. This can provide a significant boost to retirement income, as Social Security is a vital source of funds for many older Americans. Kenny Eliason / Unsplash

Additionally, Delaware is one of the rare states that does not levy an inheritance or estate tax. This can help preserve more of a retiree's accumulated wealth to pass on to their heirs.

Perhaps most surprisingly, Delaware is also one of the few states with no local or state sales taxes. This can translate to significant savings for retirees on everyday purchases, further stretching their fixed incomes. Mark Timberlake / Unsplash

These favorable tax policies make Delaware an enticing option for those looking to maximize their retirement savings and quality of life.

In a time when many states are increasing taxes to shore up budgets, Delaware's tax-friendly approach stands out as a major perk for prospective retirees. Josefina Lacroze / Unsplash

However, Delaware did rank 20th for affordability, which may be a consideration for those living on fixed incomes.

According to the report, the overall cost of living in Delaware is around 1% higher than the national average. Gökhan Kara / Unsplash

However, the numbers fluctuate considerably when you zoom in on specific locations. The cost of living in Wilmington, the state's largest city, is actually about 4% above the national average.

On the other hand, the cost of living in Dover, the state capital, is approximately 2% lower than the national benchmark. Tichnor Brothers / Wikimedia

While affordability is an important factor, retirees should consider a wide range of personal preferences when choosing where to settle down.

Access to desired activities, climate, and proximity to family can all play a significant role in the decision-making process. Monica Silvestre / Pexels

As for Florida, the once-dominant retirement destination has fallen behind, now ranking 8th on Bankrate's list. Nextvoyage / Pexels