Seemingly vying to appeal to the highest number of retiring individuals, each passing year presents a fresh ranking of the most desirable states for retirees. Past years saw states such as Florida, South Carolina, and Arizona consistently topping the lists. Recently, however, the landscape has fluctuated, with states gaining or losing allure based on various criteria including quality of life, affordable housing, reasonable healthcare costs, safety, and low taxation.
Nonetheless, gauging the attractiveness of retirement states solely from an isolated annual ranking might not yield a precise portrait. It might fail to show whether these high-ranking states truly offer the best retirement environments, or if their positions have been temporarily inflated by short-term factors like favorable new tax regulations.
To provide a more comprehensive, long-term perspective, Metals Resource undertook a ‘study of studies’ of retirement rankings across a five-year span. This research involved calculating the rise or fall in rankings to identify the states showing the most significant improvements or declines as retirement destinations, as reflected in various studies’ rankings.
The findings revealed that Virginia has had the most remarkable improvement as a retirement state over this half-decade period, jumping 38 places. While Virginia might not immediately come to mind as a retirement destination, it has distinguished itself as the state with the most progress, thanks to its high-quality living standards, top-notch healthcare services, and affordable cost of living. Virginia jumped from 39th place in 2019 to occupy the top spot by 2023. When it comes to tax policy, Virginia is comparatively moderate, charging .66% less in state tax than the national average. However, the exemption of social security benefits from taxation adds significant appeal for retirees.
Minnesota, the North Star state, was identified as the runner-up in terms of improvement for retirement suitability, climbing an impressive 32 spots from its 40th position in 2019 to 8th in the current year. The state consistently performs well in various areas, including healthcare facilities and entertainment, often clinching the top rank. Furthermore, Minnesota boasts the third-longest life expectancy among all U.S. states, trailing only behind Hawaii and California.
Securing the third spot as the most improved location for retirees, Colorado demonstrated a significant upward shift of 30 ranks, moving up from its 33rd position in 2019 to 3rd place in 2023. Colorado’s appeal as a retirement destination is manifest in its captivating natural landscapes, diverse amenities, superior healthcare services, and a cost of living that is manageable, all contributing to its status as a preferred place to enjoy retirement.
Perhaps surprisingly, Alaska is the 4th most improved state for retirement. Contrary to popular belief, Alaska ranks well in terms of financial security for seniors, with better-funded senior services and work opportunities. Despite its reputation for remoteness, cities such as Anchorage offer ample access to medical facilities and a variety of transportation options, including buses, motorcoaches, trains, air taxis, water taxis, and ferries.
Rounding up the top 5 came the state of Delaware. The First State ranked in a lowly 33rd position in 2019 before making steady progress to end in 5th position overall in 2023. Choosing to retire in Delaware is a wise financial decision as it boasts one of the lowest property tax rates in the nation. Furthermore, it provides considerable tax benefits for seniors, including exclusions on pension and 401(k) income, plus various tax credits tailored for homeowners who are 65 or older. Alongside these fiscal advantages, Delaware delivers an appealing lifestyle with its coastal living and quaint small-town charm.
Finally, the least improved state for retirees is Kentucky, dropping a whopping 44 places over 5 years. From being the 6th best state for retirees in 2019, it plummeted to the 50th spot this year. The Bluegrass state was particularly disadvantaged in three categories: sleep quality among seniors, availability of dentists, and the well-being index for those aged 55 and above. Health aspects also influenced Kentucky’s low ranking. A relatively modest 66.9% of seniors reported their health as good or better, while a concerning 10.3% of seniors experience poor mental health.
