Iowa is the best state to retire to, according to Bankrate’s latest Best States to Retire study. Meanwhile, Alaska is the last state to retire, according to Bankrate.
The company ranked all 50 states on metrics deemed important to retirees in 2023, including affordability (accounting for 40% of the ranking), overall well-being (25%), quality/cost of healthcare (20%), weather (10%) and crime (5%).
“The common narrative has been that retirees leave colder or high-cost states such as New York, New Jersey and California for traditional retirement destinations with warm weather, a relatively low cost of living and other perks for seniors,” according to Bankrate. “And while that continues to be the case in 2023, experts say older Americans shouldn’t rule out places that aren’t traditionally top of mind for retirement.”
Perhaps surprisingly, Florida came in at No. 8 on the list. A year ago, the Sunshine State was ranked as the best state to retire.
“Don’t move necessarily for the sunshine, but maybe for the healthcare costs,” retirement expert Kerry Hannon said, according to Bankrate.
Iowa tops the list because of its lower cost of living, affordable but high-quality healthcare and low crime, list authors said.
“With its vast farmlands, peaceful countryside and friendly locals, Iowa offers a unique retirement experience for many Americans seeking a more relaxed and affordable lifestyle with access to the outdoors and retirement-age communities,” Bankrate said.
Best of all, according to Bankrate, Iowa is affordable. Iowa is the sixth cheapest place to live in the country, according to the Council for Community and Economic Research. Taxwise, the state is right in the middle of the pack, ranking 22nd and 23rd, respectively, for property taxes and state and local taxes. Iowans aged 55 or more years are exempt from paying taxes on retirement income, including Social Security benefits.
“The state also topped our ranking for its high-quality healthcare services and low healthcare costs,” Bankrate said.
The Hawkeye State is followed by Delaware (2), West Virginia (3), Missouri (4) and Mississippi (5) as prime states in which to retire.
Alaska took last place, mostly because of affordability and the weather. New York (49), California (48), Washington (47) and Massachusetts (46) were also found to be less desirable places to retire.
