This article looks at the 15 best places to retire in Delaware. If you wish to skip our detailed analysis of healthcare expenses and the advantages of retiring in Delaware, please proceed directly to the 5 Best Places to Retire in Delaware.
On Retiring to Delaware
The economic hardships of retirement are one of the biggest challenges for Americans today. However, this concern isn’t limited to individuals looking to retire in the next decade. According to Lincoln National Corporation (NYSE: LNC), having enough money in retirement is the second biggest concern for consumers of all generations. The Charles Schwab Corporation (NYSE: SCHW) reports that 99% of Gen Z workers say they are facing obstacles to saving for their golden period. Simultaneously, the amount of money people feel they will require to retire comfortably has increased tremendously since the start of the pandemic.
According to Northwestern Mutual, the average American now believes they need $1.46 million to retire comfortably in comparison to $951,000 in 2020. Understandably, Corebridge Financial, Inc. (NYSE: CRBG) reports that only 27% of Americans are very confident or extremely confident that they won’t outlive their retirement savings. Inflation and rising housing costs are two factors that have enabled Americans to come to terms with the reality of how expensive retirement will be. However, one factor that continues to be overlooked is medical care.
Medical Expenses in Retirement
According to Ben Storey, Director of Retirement Research at Bank of America Corporation (NYSE: BAC), healthcare is the biggest retirement expense that people fail to account for. People tend to overlook the fact that Medicare fails to cover around one-third of all medical expenses, and these costs place a significant strain on retirement earnings.
“[People believe that] Medicare is going to pay for everything but, in reality, it only covers about two-thirds of your costs. Retirees counting on Social Security to supplement their retirement income are often surprised to learn that most of it may need to be used for healthcare.”
-Ben Storey, Director, Retirement Research & Insights, Bank of America Corporation (NYSE: BAC)
According to the Employee Benefit Research Institute, couples enrolled in a Medigap plan with average premiums will need to have saved $234,000 to have a 50% chance of covering their medical expenditures in retirement and $351,000 to have a 90% chance. These figures may stretch even further as the average retirement period increases across the country. Corebridge Financial, Inc. (NYSE: CRBG) reports that 54% of Americans aim to live to the age of 100, yet 40% of all Americans plan on retiring between the ages of 65-69. This adds up to nearly 3 decades of retirement, due to which 66% of Americans fear running out of money more than death, per Corebridge Financial, Inc. (NYSE: CRBG).
At the same time, many Americans are being forced to withdraw funds from their retirement nest eggs to manage immediate financial distress. Bank of America Corporation (NYSE: BAC) revealed that the number of individuals who made a hardship withdrawal from their 401Ks between July and September 2023 was 27% higher than at the start of the year. As Americans struggle to cope with immediate financial costs, retirement savings continue to be neglected. One strategy to maximize retirement savings is to cut down on predictable expenditures such as housing and day-to-day expenses. Many Americans in the Northeast, referred to as the “Snow Belt”, are now relocating to Southern states. Our article on Best Places to Retire in the South shows that cost of living, affordability, and lower taxes are factors that attract retirees to these states. However, for those not keen on relocating too far South, the state of Delaware is one of the best places to retire.
Retiring in Delaware: Pros
There are plenty of reasons to retire in Delaware, the foremost being affordability. The Diamond State has a median home price of $336,300, according to Redfin Corporation (NASDAQ: RDFN). In comparison, Redfin Corporation (NASDAQ: RDFN) reports that the US median home price is $420,321. Similarly, the median nationwide rent for Zillow Group, Inc. (NASDAQ: Z) listings is $2,100. In comparison, rental listings in Delaware have a median rent of $1,995, per Zillow Group, Inc. (NASDAQ: Z).
Moreover, Delaware also offers a very retirement-friendly tax structure. It is one of the states that have no taxes on social security benefits. There are partial taxes on other retirement benefits such as pensions and 401Ks. In addition, it has a State Sales Tax Rate of 0% and an Average Effective Property Tax Rate of just 0.55%, making Delaware a tax-friendly state for retirees. Although the cost of living in Delaware is 1.1% higher than the national average, it is considerably cheaper than both New Jersey and Maryland.
With these factors considered, if you are interested in finding out if retiring in Delaware is a good idea, join us as we look at where in Delaware is the best place to retire. Alternatively, you may look at our recommendations for the best places to retire elsewhere on the East Coast, including New Jersey, Rhode Island, and Maryland.
Methodology
To develop our list of best places to retire in Delaware, we initially picked out the most recommended best places to retire in Delaware on the internet. We used 10+ sources including Retireable, Movoto, and World Atlas to develop a shortlist. Further research was narrowed down to these places only. Among these best places to retire in Delaware, we developed a scorecard using metrics such as livability scores, air & water quality, cost of living, median rent, and median home prices. Livability scores were sourced from Area Vibes while median rent and median home prices were obtained from Zillow Group, Inc. (NASDAQ: Z) and Redfin Corporation (NASDAQ: RDFN) respectively. By standardizing these metrics on a linear scale, each place was scored, based on which we sorted our list in descending order. The top 15 places were chosen as the best places to retire in Delaware.
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Here are the best places to retire in Delaware.
15. Bethany Beach
Insider Monkey Score: 7.23
Livability Score: 66
Median Home Price: $810,000
Median Rent: $2,950
IM Cost of Living: 108.1
IM Air and Water Quality Score: 61
Despite being the most expensive destination on our list in terms of housing, Bethany Beach offers an amazing ocean-view community with pleasant weather. It is close to the Delaware Seashore State Park and the Fenwick Island State Park as well.
14. Wilmington
Insider Monkey Score: 9.02
Livability Score: 62
Median Home Price: $285,000
Median Rent: $1,675
IM Cost of Living: 105.1
IM Air and Water Quality Score: 26
Located in Northern Delaware, Wilmington is one of the largest cities in the state and offers a wide array of amenities and excursions. It is home to the Delaware Art Museum and the Brandywine Zoo, and also happens to be just over 30 miles from Philadelphia.
13. Rehoboth Beach
Insider Monkey Score: 10.22
Livability Score: 69
Median Home Price: $800,000
Median Rent: $2,450
IM Cost of Living: 106.6
IM Air and Water Quality Score: 58
Rehoboth Beach is one of the best places to retire in Delaware. It features a famous boardwalk with plenty of restaurants and access to fantastic beachfront excursions. It is also host to the Autumn Rehoboth Jazz Festival and the annual Chocolate Festival.
12. Middletown
Insider Monkey Score: 11.76
Livability Score: 69
Median Home Price: $406,316
Median Rent: $2,700
IM Cost of Living: 102.6
IM Air and Water Quality Score: 41
One of the best places to retire in Delaware, Middletown features plenty of retirement communities and the Christiana Care health center. The town also hosts plenty of cultural events, such as the Middletown Hummer’s Parade and the Olde Tyme Peach Festival.
11. Lewes
Insider Monkey Score: 12.14
Livability Score: 66
Median Home Price: $621,000
Median Rent: $2,300
IM Cost of Living: 104.1
IM Air and Water Quality Score: 62
Lewes is a historic town located on the Delaware Bay that offers access to the shore, state parks, excellent healthcare facilities, and much more. It features the Cape May-Lewes Ferry that connects Delaware Bay with New Jersey, making it extremely convenient as an alternative to the best places to retire in New Jersey.
10. Hockessin
Insider Monkey Score: 12.76
Livability Score: 69
Median Home Price: $455,000
Median Rent: $2,500
IM Cost of Living: 99.6
IM Air and Water Quality Score: 38
Hockessin is located on the Delaware-Pennsylvania border and is considered a great suburban alternative to Wilmington. Hockessin offers plenty of natural beauty, courtesy of the Mt. Cuba Center and the Auburn Valley State Park.
9. Georgetown
Insider Monkey Score: 13.16
Livability Score: 69
Median Home Price: $320,000
Median Rent: $2,500
IM Cost of Living: 108.1
IM Air and Water Quality Score: 60
Georgetown is another historical city dating back to 1631 when it became the first European colony in modern-day Delaware. It is close to the Redden State Forest, an ideal camping site.
8. New Castle
Insider Monkey Score: 13.98
Livability Score: 71
Median Home Price: $324,900
Median Rent: $1,700
IM Cost of Living: 105.6
IM Air and Water Quality Score: 36
New Castle is arguably the best place to retire in Delaware in terms of recreation. It is home to several museums, parks, and galleries, with First State National Historical Park being one of the oldest national historical parks in the US.
7. Milford
Insider Monkey Score: 14.61
Livability Score: 64
Median Home Price: $378,000
Median Rent: $1,800
IM Cost of Living: 101.6
IM Air and Water Quality Score: 57
Located on the scenic Mispillion River, Milford is one of the best places to retire in Delaware. Its town center boasts spectacular Victorian-era architecture and plenty of avenues for shopping, dining, and cultural immersion. It is also home to the Bayhealth Hospital.
6. Edgemoor
Insider Monkey Score: 15.35
Livability Score: 70
Median Home Price: $183,250
Median Rent: $1,500
IM Cost of Living: 104.1
IM Air and Water Quality Score: 34
Located just across the Delaware River from New Jersey, Edgemoor offers some of the best waterfront retirement communities in Delaware. It offers the tranquility of a small-town retirement with access to all of Wilmington’s urban amenities as well as the sights and sounds of the Fox Point State Park, making it one of the best places to retire in the state.
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Disclosure: None. 15 Best Places to Retire in Delaware is originally published on Insider Monkey.