If You Have A Paid Off Mortgage, This Is The Best State To Retire In

Chances are you've fantasized about your retirement — the leisurely days without alarm clocks, freedom to do what you want when you want, and living comfortably on your fixed social security income. You may even have a plan already in place for your retirement, with funds set aside in your 401(k). Maybe you even have a date picked out to start that chapter of your life. If you're one of the lucky ones who will retire at some point, have you considered in which state you want to retire? You can get the most bang for your retirement bucks in Delaware, especially if you pay off your mortgage before then.

Sure, retiring in Delaware isn't the same as your fantasy of being on a beach in the Maldives, but you're going to retire more comfortably by settling down near this state's east coast beaches. So, unless you've hit the jackpot and can retire in expensive states like Vermont, New Jersey, or Massachusetts, consider this small state's big savings.

Whether or not you pay off your mortgage before retirement, Delaware is still the most affordable state to retire in to live off social security benefits alone. But, with a paid off mortgage, you can better take advantage of an annual benefit surplus of $1,764 or about $147 monthly. This monthly amount is calculated by subtracting the median monthly expense of $1,992 from the median monthly benefit amount of $2,139. The next closest state to this level of affordability is Indiana, with a surplus of $1,392. That's a potential savings of $372 each year by making Delaware your home instead of Indiana.

On the other side of the spectrum is Vermont, the state with the most expensive cost of living on social security income alone. Vermont has an annual benefits shortfall of $8,088. New Jersey and Massachusetts have shortfalls of $7,512 and $7,345, respectively. The thousands of dollars difference between Delaware and these states is insurmountable if you're planning to retire relatively cheaply. Of course, there's always the possibility of retiring on a cruise ship and just visiting Delaware for its tax-free shopping.

Speaking of tax-free shopping, Delaware is one of only five states where you can shop 'til you drop, tax-free. That means you don't have to factor in hidden costs associated with your grocery store run. Delaware also has low property taxes, 0.48% on owner-occupied housing value. That means a median housing value of $329,800 in 2023 had a property tax of only $2,444.

Regardless of where you retire, there are several things that can make retirement enjoyable. But everything is more enjoyable in close proximity to the beach. Delaware has six incredible beach towns to frolic in with your newfound retirement freedom, so a beachside sunrise or sunset can be a part of your daily routine. This little state is also in close proximity to several large cities, so you're never without an adventure at the ready; Philadelphia, Baltimore, and Washington, D.C. are all about two hours away — the perfect getaway spots to spend the money you save by retiring in Delaware with no mortgage.