Coastal towns, picturesque beaches, endless outdoor activities, the location — it’s easy to see why so many retire to Delaware. Life is good here, but it’s more than just sunsets and parks — we’re a tax-friendly state and perfectly situated to live a relaxed lifestyle with easy access to several big cities.
Here’s more on what life in Delaware is like for retirees.
Retiring in Delaware Means Visiting the Beach Whenever You Want
Many find Lewes and Rehoboth Beach perfect for active retirement life. These coastal towns are filled with an array of dining options, endless beaches, history, shopping, and entertainment. While the relaxed lifestyle draws many to the region, you can easily buzz up to Wilmington when you’re craving the sites and scenes of the city.
Head further down the coast for an even bigger dose of tranquility when you land in Bethany Beach or Fenwick Island. The southern tip of Delaware may be for you if escaping city life is what your retirement dreams are made of. Its quiet, small-town charm, with the sound of crashing waves in the background, will have your everyday life feeling like a vacation. The area is filled with dunes, natural parks, and sunsets — a dream for outdoor enthusiasts.
It’s Retiring in Arguably the Perfectly Situated State
There aren’t many places where you can live by the beach yet be within a 200-mile radius of several major metropolitan areas. Baltimore, New York, Philadelphia, and Washington DC are all just a day trip away. The perfectly situated location of Delaware allows many retirees to live the relaxed lifestyle they desire while seeing family, supporting their favorite sports teams, or enjoying other big city attractions with ease.
Big cities also mean big airports — choose to leave from one of these major hubs and you're just one flight away from traveling across the country or skipping over the pond. Proximity to these big cities also allows you access to many amenities such as world-class healthcare, the arts, and cultural events.
Retiring in Delaware is a Smart Decision When it Comes to Taxes
When you’re officially retired, you’ll find taxes are one of your largest expenses. Electing to live in a tax-friendly state can help you save money on everyday purchases and each year come tax time. As CPAs, it’s our mission to help retirees retain as much of their retirement savings as possible through tax-efficient financial planning.
A few tax benefits of retiring in Delaware include no state estate tax, no sales tax, and relatively low real estate taxes.
Social Security benefits are exempt from state income tax in Delaware.
If you’re 60+ you can enjoy up to $12,500 from a pension or other eligible retirement income each year free from state income tax.
Delaware does not impose an inheritance or estate tax.
Delaware is known for relatively low housing and real estate costs.
Zero sales tax
Considering moving to Delaware when you retire? We’d say you're making smart decisions. We call Delaware home, and we’d be happy to answer any questions you have related to life in Delaware or in planning your transition into retirement.
About Integrated Wealth Management
Integrated Wealth Management is owned by Burt Hutchinson, CPA, CFP®. We’re a CPA-led organization, meaning we’re here to handle your complex tax scenarios and provide cost-saving insight related to your financial plan.
We’re here to guide you through the 3 stages of retirement:
Uncertainty Stage: When you are within 10 years of retirement and have questions about how to make it work
Stability Stage: When you have reached the financial milestone to retire comfortably and confidently
Reflection Stage: When you are looking to leave a legacy
We are also here to provide experienced, empathetic support during times of loss, such as the death of a life partner. You need confidence and a sense of security to enjoy retirement. As fiduciaries with a fee-only structure, we never receive commissions. Free of ulterior motives, you can be sure we’re focused on your goals.