What Are the Financial Benefits of Retiring in Delaware?
Delaware is a desirable place to retire because of the financial benefits that make life more affordable for retirees. The main reason why you should retire in Delaware is because of how pension plans, social security, and retirement plans are taxed. At the state level, social security is not taxed as income. For individuals over 60, up to $12,500 from a pension can be excluded as income.
Certain types of retirement accounts will be partially taxed. For example, withdrawals from 401K, Roth IRA, and Keough plans will be partially taxed, as well as any funds withdrawn from a pension plan that go over the $12,500 limit. Delaware has a graduated tax rate between 2.2% and 5.55%, and any income over $60,000 is taxed at 6.60%. This means that retirees will get to keep a larger chunk of their savings and pensions than they would have if they did not retire in Delaware.
How States Without Sales Taxes Are More Affordable For Retirees
Saving money in retirement is more than moving to a state with a low tax rate. When you are on fixed income, it is important to control spending and avoid accumulating credit card debt. Delaware is one state that does not have sales tax, which makes everyday items more affordable.
Most states have a sales tax between 3% and 7%. While that may not seem like a lot, it can add up quickly for retirees. The reason why Delaware does not have sales tax is because the state taxes the businesses instead of the consumers. Certain businesses must pay a gross receipt tax every year and corporations face a similarly high tax rate.
What Retirees Need to Know About the Housing Market in Delaware
Why retire in Delaware? The housing market and the cost of living is a big plus. Delaware has a robust housing market for retirees who want to age gracefully in place. There are also no property taxes at the local level, so homeowners are able to keep more of their hard-earned cash.
Whether retirees choose to live independently or in a retirement community, they can benefit from the affordability of Delaware. Compared to other east coast states, Delaware has a lower cost of living, as well as both house prices and rent rates are lower than the national average.
Why Retire in Delaware? The Top 6 Reasons Why Seniors Are Flocking to the Diamond State
Not only is Delaware affordable, it offers everything that retirees could want in a home. There is lots to do for residents of all ages. Here are the 6 reasons why you should spend your golden years in Delaware.
- As a popular spot for retirees, Delaware is home to many vibrant 65+ communities and local hobby groups. It is easy to make new friends and get involved in new hobbies.
- Delaware is centrally located and close to other attractions on the east coast. Washington DC, New York, Maryland, and New Jersey are a few hours away, so retirees can easily go on day trips or visit family members.
- Delaware is a beautiful state. The beaches are well preserved and not too far away, no matter where you live in Delaware.
- As one of the first states to ratify the Constitution, Delaware has a rich history. There are plenty of museums, gardens, historical centers, galleries, theaters, and festivals that are open to enjoy year round.
- The University of Delaware offers a program that allows students over 50 to take, teach, and audit classes in a variety of subjects for enjoyment.
- The weather in Delaware appeals to retirees because the climate is moderate and the winters are mild. It is normally warmer and more humid along the coast, so the beaches are open year-round. The annual snowfall is fairly light, so older Americans will not have to worry about too much shoveling.
The Medical Benefits of Retiring in Delaware
USA Today highlights access to medical care as one of the most important considerations when deciding where to retire. One reason why seniors retire in Delaware is because Delaware is ranked highly for health care access, quality, and public health access.
Delaware is also home to ChristinaCare Hospitals, which has been nationally ranked as one of the best hospitals in the area. ChristinaCare specializes in common adult conditions, including conditions that affect adults later in life.
Why retire in Delaware? Retirees in Delaware enjoy high-quality medical care that is affordable and close to home.
What Are the Best Places to Retire in Delaware?
Delaware only has 3 counties: New Castle, Sussex, and Kent. Seniors who are interested in retiring in Delaware have several options for cities to retire in. There is something to love for everyone, whether they like beaches or historical towns.
Retire in Wilmington, Delaware
Wilmington combines that urban buzz with the quiet safety of the suburbs. There are many pockets of town that are home to small communities of retirees who moved from out of state. While some areas of Wilmington can get pricey, the housing market is big enough for all senior homebuyers to have plenty of affordable options. Wilmington is home to the Delaware Art Museum, as well as zoos, parks, and historical locations of interest.
Historic New Castle
Historic New Castle is a popular travel destination as well as a wonderful place for retirees to settle. It is only 10 minutes away from Wilmington, so residents of Wilmington can easily visit the historic enclave.
Historic New Castle is one of the oldest settled towns in the valley. It is home to beautifully preserved streets and restored homes. Seniors who are history lovers like to retire in Historic New Castle because it is not a tourist destination, it is a fully functioning community with an abundance of bike paths and hikes.
Relax and Slow Down in Delmarva Peninsula
This peninsula is made up of three different states: Delaware, Maryland, and Virginia. Delmarva is perfect for retirees because it offers slow, leisurely beach life where seniors can slow down and enjoy their golden years. Delmarva is home to several 55+ communities, but there are also affordable beach houses for retirees who want to live independently.
While Delmarva may get busy in the summers, the peninsula normally grows quiet again in the off-season.
Retire in Painted Milton
Milton combines the best of Delmarva with the charm of Historic New Castle. When seniors retire in Delaware, they have many options for classic small towns to move to. Milton is far enough from the beach that there is no traffic. It is home to a vibrant, classic main street and it is well-known for beautiful Edwardian and Victorian homes. Milton is home to many iconic “painted lady” houses that are both enjoyable to view and available to own for retirees who want to live somewhere beautiful.