Ultimate Guide to Retiring in Delaware

As retirement approaches, you may consider where you want to spend your time when your working days are behind you. Retiring in Delaware offers many advantages that make it a desirable state for people who are nearing or in their retirement years. If you're interested in retiring soon or relocating after retirement, this guide to retiring in Delaware can give you details to help you decide if it's the best state to settle in when you retire.

Why retire in Delaware?

Delaware has a higher-than-average population aged 65 years and older, at 21.3% compared to the national average of 17.7% per the 2020 Census. And this is for good reason. Delaware is just a short drive from many large cities, providing easy access to several locations in a day.

You'll also be close to the beautiful Atlantic coastline and inland scenery. Abundant outdoor activities and events allow you to stay active, while a laid-back lifestyle and lower state population mean you can relax away from the hustle and bustle of busy city life.

Delaware residents have a high standard of living and keep their homes and yards well maintained. Seasons are mild, making it comfortable to get outdoors all year long. Shopping, entertainment, beaches, and dining are never far when you live in Delaware, plus the growing number of retirees bring in new retirement communities.

What benefits does Delaware offer retirees?

Some of the top benefits of retiring in Delaware include:

Low taxes

One of the biggest concerns for retirees is how much of their retirement income they spend paying taxes. Delaware offers some excellent tax advantages to retired residents, adding to its appeal. You won't pay any taxes on your Social Security income if Delaware is your primary residence, which is a bonus for anyone age 62 or older who's receiving Social Security benefits.

Delaware has no local sales tax, providing some savings when you shop in the state. Retiring in Delaware also means you can enjoy relatively low income tax if you receive income in addition to Social Security. The maximum tax rate is 6.6% on income over $60,000.

Reasonable cost of living

Although the cost of living in Delaware is slightly higher than the average nationwide, this coastal state is still affordable, with much to offer retirees. With no state sales tax, you'll find competitive prices when shopping for most items compared to surrounding areas. Low property taxes help bring down the cost of living in Delaware if you own your home in retirement.

Social programs

A variety of social programs specifically for seniors can provide peace of mind as a retiree in Delaware. Programs include:

• Financial coaching.
• Legal assistance.
• Meal programs.
• Senior community service employment program.
• Health services.
• Medical assistance.

Taking advantage of programs like these can make your retirement years more comfortable. You know you'll be part of a community that cares about its older population.

Moderate weather

Winters in Delaware are colder than in other states farther south. Average winter temperature lows typically hover between 23 and 28 degrees, while summer temperatures rarely get above 90 degrees. It can snow in winter months, but the average monthly snowfall is only around 6.5 inches or fewer, depending on where in the state you live.

This moderate climate allows you to get outside so you can live a healthy, active lifestyle. Spring and fall offer some excellent weather for walks on the beach or exploring idyllic old towns full of history.

Culture and events

Whether you're looking for something fun to do with the grandkids or you want to take your spouse to see the sights, you'll find plenty of cultural events throughout Delaware. Enjoy one of the many festivals that take place all year long.

In spring, you can attend the Chocolate Festival in Rehoboth Beach or wait for summer to check out the Mid-Atlantic Sea Glass and Coastal Art Festival in Lewes. Libraries are an excellent resource in Delaware, as they offer classes and other ways to get together with other retirees to enjoy your hobbies and pursue your interests.

Activities and community

The high population of retirees means you can find a sense of community if you retire in Delaware. Retirement communities for people aged 55 and older are abundant, and there are many organizations and social clubs to join. These groups enable you to be among others who share your interests and beliefs.

You can look for opportunities to volunteer in Delaware, giving you a chance to contribute to your community by donating your extra time doing something you're passionate about. Become a tour guide at a historic site in Dover, host a class at a local library, or provide information to visitors at a Delaware state park.

What are the downsides of retiring in Delaware?

Below are some possible limitations to retiring in Delaware.

Higher housing cost

Overall, housing costs in Delaware are slightly lower than the national average, but housing can still be expensive in some areas. For instance, buying a home in Rehoboth Beach or another popular location near the coast will cost you more than buying a home in Georgetown or Middleford, which are further inland.

Homeowners insurance may be more expensive due to risks associated with living near a large body of water. Because Delaware is a coastal state that could be hit by a hurricane or flood, your home is at higher risk of suffering damage from a natural disaster.

Small size

Delaware is one of the smallest states in the country, which gives it its charm. The downside to living in a small state is that there may not be as many things to do as you might find in larger metro areas, such as New York City and Philadelphia. Cities in Delaware are less populated than nearby states, so while you'll find lots of dining and shopping options in metro areas, you'll also discover many rural regions of the state.

The smaller size of Delaware also limits housing and can make new construction projects a challenge. The state has a housing shortage in several areas, so it could make finding an affordable place to live challenging.

Expensive health care

Delaware often ranks as one of the most expensive states in terms of health care coverage. On average, Delaware residents spent about $12,294 per year on health care in 2024. Some hospitals charge patients up to 40% more than hospitals in other states. This can take up a significant portion of your income if you don't have proper insurance coverage.

Where to retire in Delaware

Where you want to retire in Delaware will depend on how you see yourself spending your retirement years. These are some of the most popular areas for retirees who want to live in Delaware.

Wilmington

If you prefer city life to country living, consider Wilmington, Delaware's largest city. Located 30 miles south of Philadelphia, Wilmington has many cultural activities, museums, and events to enjoy. You'll also have access to excellent health care facilities and medical care personnel.

Rehoboth Beach

Tourists and retirees flock to communities in Rehoboth Beach. From the expansive boardwalk to the fun beach excursions, there's always something happening in the area. Take a boat tour to explore the coast from a different angle or discover a new favorite restaurant on the water.

Dover

Dover is Delaware's capital city, rich in history and culture. You might appreciate the colonial-style architecture of the many old homes or explore where Delaware was declared the first state in the union. Living in Dover also means you're not far from the coast, making it easy to take a day trip to the shore for sand and sun.

New Castle

For a more small-town feel, you may want to consider New Castle, a coastal Delaware city just south of Wilmington. New Castle is home to First State National Historical Park, one of the country's oldest historical park sites. You can also explore other museums, parks, and art galleries in town, giving you opportunities to get out of the house and do something fun.

Seek expert financial advice on retiring in Delaware

Delaware can be the ideal place to spend your retirement. However, it's always a good idea to consult a financial advisor before making decisions that can impact your income in retirement. Seeking advice from experts can help you decide if retiring in Delaware is a good choice. The team at Blueprint Income help with using annuities to help meet your financial goals in retirement.

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