Retirement planning is critical, especially when managing a fixed income like Social Security. With cost-of-living disparities across the US, the amount you need to retire comfortably can vary greatly depending on your chosen location.
Fortunately, several states offer a high quality of life at a much lower cost. Recent analysis shows that retirees can live comfortably on $65,000 or less in certain states. Here’s a look at nine affordable US states for retirees on a budget.
Best States to Retire Comfortably on $65,000 or Less
These nine states are great options for retirees looking to maximize their Social Security income while maintaining a comfortable lifestyle. The analysis considers housing, healthcare, food, transportation, and other necessary expenses.
| State | Total Annual Expenditure | Comfort Buffer (20%) | Total Annual Cost for Comfortable Retirement |
|---|---|---|---|
| Alabama | $50,980 | $10,196 | $61,176 |
| Arkansas | $51,211 | $10,242 | $61,454 |
| Georgia | $52,832 | $10,566 | $63,398 |
| Indiana | $52,253 | $10,451 | $62,704 |
| Iowa | $52,137 | $10,427 | $62,565 |
| Kansas | $50,517 | $10,103 | $60,620 |
| Missouri | $51,211 | $10,242 | $61,454 |
| Oklahoma | $49,996 | $9,999 | $59,995 |
| West Virginia | $48,492 | $9,698 | $58,190 |
Why These States Stand Out
- Alabama – With low housing costs and affordable healthcare, Alabama is a top choice for retirees seeking a budget-friendly retirement.
- Arkansas – Arkansas offers low living expenses, especially in housing and healthcare, allowing retirees to live comfortably on a smaller budget.
- Georgia – Combining affordable living costs and great access to healthcare, Georgia remains an appealing option for retirees.
- Indiana – Known for its low property taxes and affordable living, Indiana makes retirement more manageable for those on a fixed income.
- Iowa – Offering affordable utilities, housing, and healthcare, Iowa is a solid choice for retirees looking to stretch their Social Security benefits.
- Kansas – Kansas is another great option for retirees seeking low housing and healthcare costs.
- Missouri – Missouri offers a relatively low cost of living with affordable healthcare and utilities, making it ideal for retirees.
- Oklahoma – Oklahoma has one of the lowest annual living expenses, with low property taxes and affordable healthcare.
- West Virginia – With the lowest cost of living on the list, West Virginia offers retirees the opportunity to live comfortably on less than $65,000 annually.
Maximizing Social Security Benefits
While choosing an affordable state is important, maximizing your Social Security benefits is equally essential. Here’s how:
- Delay Retirement: Waiting until age 70 to claim benefits increases your monthly payment by up to 8% per year after age 62.
- Work More Years: Social Security benefits depend on the money you earned in your top 35 years of work. Working more years can raise your average pay.
- Maximize Your Salary: The higher your salary during your working years, the larger your Social Security check will be.
Retiring on $65,000 or less is possible and comfortable in these nine US states. By choosing a location with a lower cost of living and maximizing you.
FAQs
West Virginia offers the lowest cost of living among these nine states, making it the most affordable option.
Yes, you can live comfortably on $65,000 or less annually in these states by taking advantage of their lower living costs.
Housing, healthcare, transportation, and food costs are key factors that contribute to the lower cost of living in these states.
Yes, delaying Social Security benefits until age 70 can increase your monthly payment significantly.
Arkansas and Alabama are known for offering affordable healthcare options for retirees.
