Finding Your Perfect Retirement Haven: A Guide to the Best and Worst States for Retirees in 2023

Retirement is a time for new beginnings, and one of the most critical decisions is where to spend this chapter of your life. The choice between settling down by the beach, in the mountains, or closer to family is a deeply personal one. To help you navigate this significant decision, Bankrate has conducted an extensive study, crunching numbers on costs of living, public health, and more. In this blog post, we'll delve into the key takeaways and explore why some states top the list as the best places to retire, while others fall behind.

The Bankrate study reveals Iowa as the surprise winner for the best state to retire, owing to its lower cost of living, high-quality yet affordable healthcare, and low crime rates. Joining Iowa in the top five are Delaware, West Virginia, Missouri, and Mississippi. The geographical split in the best and worst states showcases the Midwest and South as favorable retirement destinations, while the Northeast and West rank lower primarily due to higher costs of living.

Why Iowa Tops the List:
- Affordability: Iowa's sixth-place ranking as the cheapest state to live in the U.S. is a significant draw for retirees on a fixed income. Lower housing costs, with a median home price of $239,400, make it an attractive option.

- Tax-Friendly: Iowa ranks favorably for property and sales taxes, and it doesn't tax Social Security benefits. Those aged 55 and older are exempt from state taxes on retirement income.

- Healthcare: The state excels in healthcare services, with high-quality care and lower healthcare costs. Nearly 20% of the population is aged 65 and older, providing a sense of community for retirees.

Other Top Contenders:
- Delaware: Boasting well-being, high-quality healthcare, and cultural offerings, Delaware ranks second overall. Affordability is its weakest point, ranking 31st in the cost of living category.

- West Virginia: With the best affordability in the nation, West Virginia stands out for its low cost of living and a light tax burden. Wellness factors place it in the middle of the pack.

- Missouri: Affordability shines in Missouri, but challenges exist in healthcare quality, crime rates, and natural disasters.

- Mississippi: Surprisingly scoring well in affordability, weather, and crime, Mississippi faces challenges in healthcare and overall well-being.

Considerations for Your Retirement Move:
- Stretching Savings: Relocating in retirement can be financially savvy, especially to more affordable regions. Consider selling your current home, using the equity to pay cash for a new home, and reducing or eliminating a mortgage.

- Healthcare Costs: Look for areas with reasonable healthcare costs, as this can significantly impact your overall expenses.

- Expert Tips: Financial advisors recommend considering both current and future costs, testing the waters with a trial run in a new place, and not just focusing on housing costs but also on how your home meets your evolving needs.

Choosing the right state for retirement is a complex decision involving various factors. While Iowa takes the lead in Bankrate's ranking, it's essential to consider your personal preferences, financial situation, and long-term sustainability. Whether you're drawn to the Midwest charm of Iowa or the coastal allure of Delaware, finding your retirement haven requires careful consideration. As you embark on this exciting journey, remember that the best state for retirement is ultimately the one that aligns with your unique vision for this next chapter of life.