Studies repeatedly indicate that Americans are falling short on saving for retirement, which means that where they choose to settle is a crucial factor for their quality of life, a new study says.
A ranking by personal finance website WalletHub took a look at which U.S. states offer the best environment for retirees, studying 46 factors in the areas of affordability, quality of life and healthcare services.
"Many people fear that retirement will mark the end of their financial security, and others worry they might never actually get to retire," WalletHub says in its report. "That’s understandable when 28% of non-retired adults haven’t saved any money for retirement and Social Security benefits replace only about 37% of the average worker’s earnings."
The following, in ascending order, are WalletHub's best states for retirement in 2024:
10. Pennsylvania
The state scores best in quality of life, ranking second in the nation, but Pennsylvania is also one of the least affordable states on this list, ranking 35th.
9. Montana
Aside from being one of the most tax friendly states, Montana ranks 12th in quality of life and 16th in healthcare.
8. Minnesota
Minnesota is the least affordable state among the top 10, but it was also judged to be the best state in the nation for retiree healthcare. It also ranks fourth in quality of life.
7. New Hampshire
The state is known for its tax friendly environment, including not having an income tax. The study found it also ranked fifth in healthcare and eighth in quality of life, while ranking 28th in affordability.
6. Idaho
In addition to its wide open spaces, Idaho should be alluring to retirees because of its affordability, ranking ninth nationally in that category. It ranks 24th in both quality of life and healthcare.
5. Wyoming
The state ranks seventh in the nation in affordability and quality of life, but is only ranked 37th in healthcare. "Wyoming has very good protections against elder abuse compared to most states," WalletHub says.
4. Delaware
Delaware is the most affordable state among the top 19, ranking third in the nation in that category. It only ranks 34th in quality of life, however, and 24th in healthcare. "The First State has a larger population of seniors than most states, at nearly 20%," WalletHub adds.
3. Virginia
Medical care and safeguards against elder abuse were among the main reasons Virginia ranks so high on this list. "[Elder abuse protections make] seniors physically safer and less vulnerable to being taken advantage of financially," WalletHub says. "The state has high-quality geriatrics hospitals and a lot of doctors and dentists to choose from, too."
2. Colorado
The state stands out for ranking third in the nation in healthcare. "It has one of the lowest rates of social isolation for seniors, and very few residents above age 65 are in poverty," WalletHub says.
1. Florida
"Florida isn’t known as a retirement paradise for nothing—it ranks as the best state to retire due to its relatively low taxes for retired people, including no estate, inheritance or income taxes," WalletHub says.
The full report can be viewed here.
