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As retirees plan where they want to live out their golden years, they’re often weighing proximity to friends and family against where their money will stretch the furthest.
That cost-consciousness is partly why Florida was named the best state for retirement in 2024, according to a recent report from personal finance site WalletHub. The state is famous for its warm weather, low taxes, and miles of stunning coastline.
“Florida is the best state for retirees in part due to its lack of estate or inheritance taxes and its low cost for adult day health care and homemaker services,” WalletHub analyst Cassandra Happe said in a statement. “Florida provides a great natural environment for retirees, with the second-most shoreline miles of any state, and it ranks among the top states for adult volunteer activities, golf courses, country clubs, and theater companies.”
The biggest financial perk for retirees is the Sunshine State doesn’t charge residents income tax. That means Social Security benefits as well as pension and income from an IRA or 401(k) are tax-free.
The downside is home prices in the state aren’t cheap—at a median list price of $459,900 in December, according to the most recent Realtor.com® data. That’s about 12% higher than the national median of $410,000, which can take a big bite out of a retiree’s savings.
Surprisingly, eight of the top 10 states for retirees had prices higher than the national median price. Most are also snowier states that don’t boast the warmer climates that retirees often seek out. However, they boast other quality-of-life amenities and top-notch health care systems that gave them an edge in the rankings.
Kentucky was named the worst place to retire, according to WalletHub. The Bluegrass State had one of the lowest life expectancies (47th) and health care rankings (44th). It also scored more poorly in quality-of-life amenities (41st) than most of the other states.
“To make the most of your retirement savings, you should retire in a state where the cost of living and tax rates are friendly to retirees,” Happe said. “You should also consider factors like the quality of the state’s health care system and the abundance of activities that you enjoy.”
To come up with its findings, WalletHub looked at 46 data points across three categories—affordability, quality of life, and health care—in all 50 states. These included things like tax friendliness, the percentage of the population aged 65 and older, the weather, and even the number of bingo halls per capita.
The 10 best states to retire in
- Florida (Median home list price: $459,900)*
- Colorado ($549,900)
- Virginia ($415,250)
- Delaware ($474,990)
- Wyoming ($435,000)
- Idaho ($550,000)
- New Hampshire ($549,999)
- Minnesota ($375,000)
- Montana ($619,000)
- Pennsylvania ($285,000)
The 10 worst states to retire in
- Kentucky (Median home list price: $294,900)*
- New Jersey ($525,000)
- Mississippi ($275,000)
- Rhode Island ($485,000)
- Oklahoma ($295,000)
- Louisiana ($275,000)
- New York ($634,900)
- Washington ($614,975)
- Arkansas ($298,900)
- Illinois ($294,700)
* Median home list prices are from Realtor.com data for December.
The post The 10 Best—and 10 Worst—States for Retirement in 2024 appeared first on Real Estate News & Insights | realtor.com®.