5 Best States to Retire in 2024

Many individuals fear that retirement will jeopardize their financial security, while others worry they may never be able to retire. This concern is understandable, especially considering that 28% of non-retired adults haven't saved any money for retirement, and Social Security benefits only replace approximately 37% of the average worker's earnings.

Choosing the right location for retirement can significantly stretch your retirement funds. To identify the best states for retirement, various indicators of retirement-friendliness are considered, ranging from financial factors such as tax rates and cost of living to aspects like access to quality medical care and recreational activities.

1. Florida

Florida is renowned as a retirement paradise for good reason—it consistently ranks as the best state to retire due to its favorable tax environment for retirees, including no estate, inheritance, or income taxes. Additionally, the costs of adult day health care and homemaker services are lower compared to most other states.

Beyond financial considerations, Florida offers an ideal environment for retirees. With the second-highest number of shoreline miles of any state, retirees can enjoy plenty of beach relaxation. Florida also ranks among the top states for adult volunteer activities, theater companies, golf courses, and country clubs. The state provides numerous opportunities for seniors to maintain their health and happiness, as reflected in its low death rates for individuals aged 65 and older.

Although the overall cost of living in Florida is relatively high compared to other states, it doesn't detract from its top ranking as the ideal destination for retirees.

2. Colorado

Retirees who prefer the cool mountain air of the Rockies over the warm climate of Florida may find Colorado to be an excellent choice, as it ranks as the number two state for retirement. Colorado offers similarly favorable tax conditions, with no estate or inheritance taxes.

Colorado is not only beneficial for retirees' physical and mental well-being, but it also has one of the lowest rates of social isolation among seniors. Moreover, very few residents aged 65 and older live in poverty in the state. Additionally, Colorado boasts some of the best geriatric hospitals in the country and ranks extremely high in terms of the percentage of seniors in good health and actively engaged in physical activities.

3. Virginia

Virginia ranks as the third-best state for retirement, partly due to its robust elder-abuse protections, which enhance seniors' physical safety and reduce their vulnerability to financial exploitation. Additionally, the state boasts high-quality geriatric hospitals and a wealth of healthcare providers, including doctors and dentists.

From a financial perspective, Virginia offers retirees several advantages, including the absence of estate or inheritance taxes and a ranking as the tenth most taxpayer-friendly state. However, it's worth noting that Virginia is not particularly affordable in terms of overall cost of living.

Residents of the Old Dominion State also enjoy many miles of shoreline, a low rate of violent crime, and relatively good air quality.

4. Delaware

Delaware is the fourth-best state for retirement, primarily due to its exceptionally low overall tax burden, which includes no estate or inheritance taxes.

With nearly 20% of its population being seniors, the First State boasts a larger senior population than most. This demographic contributes to Delaware having the second-lowest risk of social isolation for seniors. Factors contributing to this low risk include the percentage of people aged 65 and older who live alone, do not live with a partner, have a disability, struggle to live independently, or live in poverty. In addition, Delaware has the lowest poverty rate among individuals aged 65 and older.

5. Wyoming

Wyoming ranks fifth among the best states for retirement, standing out for its commitment to senior safety. The state has robust protections against elder abuse compared to most states and boasts one of the lowest violent crime rates in the country. With minimal crime overall, Wyoming provides a safe environment for retirees. Additionally, the state offers some of the cleanest air in the country, which is particularly beneficial for seniors with respiratory issues.

In the Equality State, retirees are actively engaged in giving back to their communities, as evidenced by one of the highest rates of senior volunteering in the nation. This high level of community involvement likely contributes to the low risk of social isolation among seniors in Wyoming.

From a financial standpoint, Wyoming is also advantageous for retirees. The state boasts one of the lowest tax burdens in the country and does not impose an estate or inheritance tax.

Sources: The data used to compile this ranking were collected as of December 20, 2023, from a variety of reputable sources, including the U.S. Census Bureau, Federal Bureau of Investigation, Council for Community and Economic Research, U.S. Bureau of Labor Statistics, The Kiplinger Washington Editors, County Health Rankings, Genworth Financial, United Health Foundation, Centers for Disease Control and Prevention, Corporation for National and Community Service, Centers for Medicare & Medicaid Services, Great Nonprofits, American Board of Medical Specialties, Gallup Healthways, The Tax Foundation, America's Scenic Byways, Bingo Halls U.S.A., NOAA Office for Coastal Management, U.S. News & World Report, and WalletHub research.