Retiring In Delaware Could Be A Huge Mistake And The Reason Couldn't Be Clearer

If you thought that retiring to Delaware was going to be a smart financial move, you might want to configure your post-career plan when it comes to setting down roots in the place known as "The First State." That's because while Delaware retirees received one of the biggest social security increases in 2025 and the state is known for having low property taxes, plenty of retirees report feeling isolated in the idyllic beach communities that they expected to be the perfect place to spend their golden years.

In an essay for Business Insider, Patricia Garrison and her husband recalled how they thought moving to Delaware from New Jersey was the right move for their retirement. Unfortunately, the small seaside village they retired to in Delaware turned out to be too much of a hassle to deal with, particularly with tourists flooding in during the peak beach season, clogging the streets with traffic, taking all the parking, and driving up prices for food and services. Places like the Boardwalk at Rehoboth Beach morph into tourist traps that have a reputation for overpriced products and expensive meals.This hardly makes Delaware a relaxing or affordable destination for retirement.

Sure, Delaware is one of a handful of states where you do not have to pay a state sales tax on goods and services, but that does not necessarily mean that your cost of living expenses will drop just by living there. Rent.com highlighted that residents of Delaware should budget for an extra 7% more on groceries than the average person, as well as prepare for the higher cost of healthcare. The average home price sits at $405,948 as of July, 2025 according to Zillow,

BestPlaces found that a single person can live on $3,633 a month in Delaware, about 23.8% less than the United States averages, however, the site gave the state a 103.5 cost of living score. That means that for expenses like housing, food, transportation, and medical needs, retirees can expect to pay 3.5% higher than the rest of America. If you are a retiree who expects to need some help later on in life, Delaware can be a pricy state for assisted living costs. Senior Living noted that in Delaware the average monthly price of a semi-private room in a nursing home can be $10,646, only going up for a fully private residence to $10,996 a month. So while Delaware might feel like it's the dream place to retire, you might want to check your finances and work with a retirement planner to make sure it's actually the right fit for your and your budget.