The No. 1 best state to retire in the U.S.—it's not Florida (2024)

FAQs

The No. 1 best state to retire in the U.S.—it's not Florida? ›

The best state to retire is Iowa because of its lower cost of living, affordable but high-quality healthcare and low crime. Delaware, West Virginia, Missouri and Mississippi round out the top five.

For example, many are moving to Limestone County, Alabama, the fastest-growing county in the state. The area boasts lakefront property, warm weather and low property taxes, so it only makes sense that it's considered a substitute for The Sunshine State.

1. Iowa. Iowa ranks as the number one state to retire to. It offers an affordable cost of living and home prices and a strong economy, making it an attractive place to make retirement savings last longer.

The Sunshine State has long had a reputation as being a Mecca for retirees. According to one recent study, that's not the case anymore. States like Delaware, Mississippi and Iowa ranked higher than Florida on Retirement Living's list of 2024 best states for retirement.

A: The best state to retire in 2024 is sunny Florida, according to WalletHub, thanks to its relative affordability and high quality of life for seniors. That's followed by Colorado, Virginia, and Delaware.

Why are boomers moving from Florida to Appalachia? Most of the boomers moving to Appalachia are "drawn by lower housing costs and living expenses, lower taxes, lower insurance costs, low crime, warm weather (but with seasons) and less chance of hurricanes," the Journal said.

The top two countries where the seniors are most satisfied—Denmark and Finland—also happen to be the top two countries on the overall happiness index. As a general trend, advanced economies make up the bulk of this top 20 list, likely due to their stronger social security systems and financial security.

Which is better to retire, Delaware or Florida? ›

Delaware residents enjoy some of the lowest property taxes in the country and the state doesn't tax Social Security benefits. However, in contrast to Iowa, Delaware ranked 31st in Bankrate's affordability category. While Florida ranked as 2022′s top state to retire, it fell to 8th place this year.

Q: Is Tennessee or Florida better for retirees? A: The answer to this question depends on your specific interests and why you're moving in the first place. Tennessee's cost of living is below the national average, while Florida's is above. However, Florida provides easy beach access and has warm weather year round.

Additionally, Florida outpaced states such as Georgia, which ranked #30 overall, with affordability ranking #10 and Texas, which ranked #32 overall, with affordability ranking #25 for seniors.

Contributing to their move was a perfect storm of soaring insurance costs, a hostile political environment, worsening traffic and extreme weather, according to interviews with more than a dozen recent transplants and longtime residents who left the state in the past two years.

Corpus Christi, located on the Gulf of Mexico, offers a coastal experience akin to Florida. With miles of beaches, rich marine life and affordable housing options, it is a hidden gem for retirees seeking a balance between coastal living and financial prudence.

Sales tax: Florida has a relatively high sales tax rate of 6%, which can add up over time for retirees who are living on a fixed income. Crowds: Florida is a popular destination for tourists, which means that some areas can be very crowded during peak season.

According to the Missouri Economic Research and Information Center, the lowest overall costs of living were found in Mississippi, Oklahoma, Kansas, Alabama, and West Virginia: Cheapest states to retire.

South Dakota

South Dakota is considered to be very tax-friendly towards retirees. There is no state income tax in South Dakota. This means that there is no state income tax on Social Security benefits, distributions from retirement accounts such as IRAs or 401(k)s, or pension benefits from public or private pensions.