If you’re considering retiring to a less expensive location, you’re not alone – many Americans lack the retirement savings necessary to pay the cost of living in their home states when their working years are done.
Relocating to a more cost-effective place may enable you to stretch your retirement money further, reducing some of the anxiety around your financial future.
To assist you in deciding on the ideal retirement location, GOBankingRates analyzed all 50 states and identified areas where you may retire for less than $45,000 per year.
The study included elements such as groceries, housing, utilities, transportation, healthcare, and the state’s total cost-of-living index, all of which have a significant impact on your annual retirement spending.
These indices were then multiplied by the average annual spending of Americans aged 65 and over to determine the top eight states.
The data in this article is based on a per-family basis. According to the latest Census, the average household contains 2.5 people.
To begin planning for retirement, consider housing options that cost less than $45,000 per year.
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8. New Mexico
$44,997 in annual expenses
While grocery and healthcare expenses are just below the national average, inhabitants of the Land of Enchantment can save significantly on housing and utilities, which are 19.6 percent and 11.1 percent more affordable, respectively.
7. Alabama
$44,897 in annual expenses
Alabama is worth serious consideration in your retirement planning because it has the seventh-lowest yearly healthcare costs in the US, at $6,177. Alabama has a 10.6 percent lower cost of living than the national average.
6. Georgia
$44,897 in annual expenses
Georgia has the fourth-lowest housing prices in the US, at $6,959, or 28.7 percent less than the national average. That may be why the Peach State is home to a number of opulent retirement complexes.
5. Missouri
$44,646 in annual expenses
While Missouri’s utility costs are comparable to the national average, the Show-Me State’s housing costs are the sixth lowest in the country, at $6,988, or 28.4 percent less than the national average.
4. Kansas
$44,143 in annual expenses
Kansas is one of the states where your Social Security benefits stretch the furthest, which is an important factor to consider when considering where to retire. At $3,770 and $7,008, respectively, groceries and housing prices are reasonable.
3. Arkansas
$44,093 in annual expenses
Arkansas is one of the most affordable states to live in because it has the third-lowest healthcare and transportation expenditures, which can help extend the life of your retirement assets.
2. Oklahoma
$43,591 in annual expenses
Oklahoma has the sixth-lowest transportation costs in the nation, at $3,681. Additionally, it is one of the top three states in the country in terms of how long $500,000 lasts in retirement.
- Mississippi
$42,587 in annual expenses
In Mississippi, where pensioners spend the least each year, early retirement may be attainable. Housing, in particular, is a deal at $6,510, 33.3 percent less than the national average and far less than any other state on the list.
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States Where Retirement Costs Will Be Less Than $45,000 Per Year
The greatest retirement locations for those earning less than $45,000 per year are clustered in the South and Midwest.
Mississippi, Oklahoma, and Arkansas – all Southern states – claimed the top three rankings. Kansas was ranked fourth in the Midwest in our poll. Missouri, Georgia, Alabama, and New Mexico completed the top eight states with the lowest annual retirement costs.
Hawaii, the District of Columbia, and California round up the bottom half of the rankings. In total, six states require more than $65,000 per year.
Hawaii and Washington, D.C. are the only states that exceed $70,000 in annual spending, and by a large margin – over $28,000 for Hawaii and nearly $11,000 for D.C.
You’ll spend about $56,000 more annually to move from No. 1 Mississippi to dead-last Hawaii, where retirees pay an eye-popping $98,582 each year.
