A new study identifies the 5 best states for long-term retirement success and security. Does your state rank among them?

Core Insights - The study from Caring.com ranks states based on retirement readiness, considering factors like average retirement income, accumulated savings, homeownership rates, and cost of living [4][20] - The top five states for retirees are Delaware, Virginia, Connecticut, Minnesota, and Illinois, which combine strong incomes, manageable costs, and supportive policies for older Americans [20] Group 1: State Rankings and Characteristics - Delaware ranks first with a retirement score of 7.45, featuring an average retirement income of $31,300 and a lower cost of living, spending 16% less on groceries than states like Colorado and California [9][10] - Virginia, with a retirement score of 7.20, has a high median household income of $89,931 and average retirement savings of $492,965, the sixth-highest in the country [7][8] - Connecticut ranks third with a retirement score of 6.53, having the highest average retirement savings and offering tax exemptions on Social Security for those with an adjusted gross income below $75,000 [5] Group 2: Affordability and Cost of Living - The study indicates that retirees in Connecticut may fall short of their retirement needs by 35% due to a higher cost of living, particularly in healthcare [11] - West Virginia is noted as the most affordable state for retirees, allowing comfortable living on $58,190 a year due to low property costs and lower-than-average grocery and utility expenses [12] Group 3: Homeownership and Housing Costs - Homeownership is a significant factor, with 79.1% of West Virginians owning their homes, followed by Mississippi at 75.8% and Delaware at 75.1% [14] - Owning a home can provide passive income opportunities and reduce fixed costs in retirement, especially if property taxes are alleviated for seniors [15] Group 4: Tax Structure - Mississippi is highlighted as the most tax-friendly state for retirees, exempting Social Security benefits, pensions, and retirement account withdrawals from state taxes [16] - While tax benefits are appealing, the overall quality of life and healthcare access should also be considered when choosing a retirement location [17] Group 5: Healthcare Access - Access to quality healthcare is crucial for retirees, as states with better healthcare systems can significantly enhance retirees' quality of life [18] - Higher-cost states like Minnesota may offer better healthcare access, which can be more beneficial for retirees with chronic conditions [19] Group 6: Conclusion - Retirement readiness is influenced by various factors beyond savings, including state policies, affordability, taxes, housing stability, and healthcare access [20][21]