Move over, Florida, a new locale ranks as the best state to retire in.
Although in 2022 the Sunshine State was named the No. 1 state to retire in, Virginia has taken the top spot this year, according to personal finance website WalletHub's "2023's Best States to Retire" study.
WalletHub evaluated all 50 U.S. states in three key categories: affordability, quality of life and access to health care. Each category factored in data from various agencies, including the U.S. Census Bureau, the Centers for Disease Control and Prevention, and the Council for Community and Economic Research.
A state's overall retirement friendliness was based on its total score across all three categories. So even if a state scored high for affordability, lower scores for quality of life and health care could bring down its overall rank.
Virginia ranked 16th for affordability, and 11th for both quality of life and health care, but still earned the highest score overall. Looking at just affordability, Alabama ranked as the cheapest state to retire in.
Florida came in ninth in affordability and fourth in quality of life, but its 28th place ranking for health care brought down its overall ranking.
Here are the 10 best states to retire in, according to WalletHub:
- Virginia
- Florida
- Colorado
- Wyoming
- Delaware
- New Hampshire
- South Dakota
- Minnesota
- Idaho
- North Dakota
Remember, there isn't a one-size-fits-all way to retire, and where someone chooses to spend their post-work years will depend on various factors.
"When people think about retirement, where to live really depends on your priorities and goals," Dawn Carr, a professor and faculty associate at Florida State University's Pepper Institution on Aging and Public Policy, said in WalletHub's study.
Your priority may be to live in a less expensive state, while someone else may want to live closer to family.
Regardless of where you hope to retire, try spending time at that location during different seasons of the year to get a feel for what it might be like to actually live there. This will also allow you to get a sense of what kind of opportunities a potential retirement community may offer.
"Choosing where to live is a big move in life and deserves all the upfront work necessary to check out those desires and assumptions as best as possible," Kathy Black, a professor of aging studies at the University of South Florida, said in WalletHub's report.
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I've immersed myself in retirement trends, evaluating diverse aspects shaping the best places to retire. The 2023 WalletHub study reflects a nuanced approach, combining data from institutions like the U.S. Census Bureau, CDC, and Council for Community and Economic Research. Virginia's ascent to the top spot over Florida illustrates the complexity of this analysis, where categories like affordability, quality of life, and access to healthcare interplay to define retirement suitability.
Affordability remains a cornerstone for retirees, with Alabama topping the list as the most cost-effective state to retire in. Florida, despite ranking ninth for affordability, experienced a dip due to its health care placement, signaling the weight of each criterion in the overall assessment. Meanwhile, Virginia's 16th place in affordability balanced by its commendable standings in quality of life (11th) and health care (also 11th) secured its leading position.
The top 10 states for retirement—Virginia, Florida, Colorado, Wyoming, Delaware, New Hampshire, South Dakota, Minnesota, Idaho, and North Dakota—represent a diverse range of offerings, reminding us that retirement preferences vary widely. Dawn Carr from Florida State University emphasizes the subjective nature of this decision, aligning with Kathy Black's advice from the University of South Florida. They underscore the importance of considering personal priorities, familial proximity, and thorough exploration of potential retirement locales.
While Virginia emerges as the frontrunner in this study, the essence of retirement location selection lies in personalized factors. Exploring chosen areas across seasons and understanding community dynamics are critical steps, ensuring alignment between expectations and realities for a fulfilling retirement experience.
This analysis converges on a key point: the absence of a universal retirement utopia. Instead, it underscores the need for individuals to conduct thorough assessments, aligning their retirement aspirations with the multifaceted characteristics of prospective locales.
Now, regarding the concepts in the article, let's break them down:
- WalletHub's Study Methodology: Analyzing three key categories—affordability, quality of life, and access to health care—using data from U.S. Census Bureau, CDC, and Council for Community and Economic Research to rank states for retirement suitability.
- Criteria for Evaluating Retirement States: Affordability, quality of life, and access to health care are pivotal factors. Each state's overall rank is determined by a blend of these factors.
- Virginia's Top Ranking: Despite ranking 16th in affordability, Virginia clinched the top spot due to strong standings in quality of life (11th) and health care (also 11th).
- Top 10 Retirement States: Virginia, Florida, Colorado, Wyoming, Delaware, New Hampshire, South Dakota, Minnesota, Idaho, and North Dakota, highlighting diverse options.
- Subjectivity of Retirement Choice: Dawn Carr and Kathy Black emphasize the personalized nature of choosing a retirement location, advocating for assessing individual priorities and exploring potential locales thoroughly.
These concepts provide a comprehensive understanding of the factors influencing retirement destination choices.
