FLORIDA, USA — Last year, a study from financial services company Bankrate named Florida the best U.S. state to retire in. This year, it didn't even make the top five.
Bankrate ranks its choices based on statistics in five main factors: affordability, overall well-being, the cost and quality of healthcare, weather and crime.
"The category that we weighed the heaviest was affordability, to reflect the challenges that so many Americans face in today’s economy," Bankrate said in the study. "The housing market remains competitive, with high borrowing costs, expensive housing prices and low inventory. At the same time, inflation has rocked Americans’ wallets over the last two years, leaving many feeling behind on their retirement and looking for ways to stretch their savings."
Although a key inflation rate hit a two-year low in June nationwide, Florida leads the U.S. with its high prices, with housing still being a significant cost.
The emphasis on affordability played a big role in the selection of this year's number one choice: Iowa.
According to the study, Iowa is the sixth cheapest state to live in with median home prices and homeowner's insurance well below the national average. Iowa also doesn’t tax Social Security benefits and exempts residents age 55 and older from paying state taxes on retirement income. Bankrate also said the state boasts high-quality healthcare services and low health care costs.
Delaware, West Virginia, Missouri and Mississippi rounded out the top five for 2023. Florida placed eighth.
Meanwhile, the five worst states for retirement were Alaska, New York, California, Washington and Massachusetts.
The study added the caveat that Iowa is not perfect, scoring poorly in terms of ethnic and cultural diversity. The weather was also a mark against it with colder temperatures and tornadoes.