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In These States, Your Retirement Will Not Cost You More Than $45,000 a Year!

In These States, Your Retirement Will Not Cost You More Than $45,000 a Year

If you’re considering retiring to a cheaper location, you’re not alone: many Americans don’t have enough funds to cover the cost of living in their home states after their working years are done.

Some people’s money and retirement plans were also impacted by the pandemic. Moving to a more cost-effective place can help you stretch your retirement money longer, removing some of the worries about your financial future.

GOBankingRates utilized data from the Bureau of Labor Statistics to identify the top 10 places where you can live out your golden years for less than $45,000 per year.

The study looked at things like groceries, housing, utilities, transportation, healthcare, and the overall cost-of-living index in each state, all of which play a big role in your annual retirement spending.

The final ranking of the top 10 states was determined by multiplying these indices by the average yearly expenditures of Americans aged 65 and older.

The data in this article are for a single household. According to the most recent Census, the average household size is 2.5 people.

Look for areas to live in that will cost you less than $45,000 per year as you prepare for retirement.

Indiana is number ten

Expenditures per year: $43,107

Early retirement may be conceivable in Indiana, a state where seniors do not have to pay expensive fees to retire. At $7,763 per year, housing is an absolute bargain. The cost of living index is 90.6, while utilities are only $3,745 per year.

West Virginia is number nine

$43,059 in annual expenses

In West Virginia, where overall costs are relatively modest, an early retirement is also a viable option. Housing costs $7,793 per year, while groceries cost only $4,057 per year.

Iowa is ranked number eight

$42,774 in annual expenses

In addition to cheap housing prices, retirees in Iowa will be pleased to learn that other expenses such as utilities, which cost just $3,609 per year, and healthcare, which costs only $6,661, are also affordable.

Missouri is ranked number seven

$42,726 in annual expenses

In Mississippi, where seniors spend only $7,962 per year on housing, early retirement is a distinct possibility. Retirees will also be pleased to learn that the grocery bill is only $3,994.

Tennessee is number six

$42,345 in annual expenses

This southern state caters to retirees in a variety of ways. It’s a cheap way to live, with healthcare costs of just over $6,000 a year, utilities of just under $3,500, and transportation costs of $3,326.

Georgia is number five

$42,250 in annual expenses

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With an annual housing cost of about $7,377, Georgia makes it easy for retirees to call this gorgeous state home. Other costs aren’t prohibitively expensive: Utilities cost $3,424 per year, while transportation costs $3,326.

4. The state of Oklahoma

$41,822 in annual expenses

Many retirees should consider Oklahoma as a destination to spend their golden years without worrying about money. The annual housing expense is only $7,470, with $3,598 in utilities and $6,301 in healthcare.

3. The state of Alabama

$41,822 in annual expenses

The South has a monopoly on cheap retirement destinations. Alabama is another state with low housing prices, ranking third on the list with an annual housing cost of around $6,950.

2. The state of Kansas

$41,156 in annual expenses

Kansas doesn’t have many hills, but retirees will find affordable housing, starting at $7,198 per year, and reduced overall costs. Utilities are only $3,791 per year, while groceries are only $3,855 per year.

Mississippi is number one

$39,633 in annual expenses

Mississippi is the most affordable destination to retire on the list. Even if you don’t know how to spell it, you may retire here for only $6,574 per year in housing expenditures.

The cost of groceries will be $3,876 per year. Another $3,420 is spent on utilities, and only $6,315 is spent on health care.

States in which you can retire for less than $45,000 per year

The greatest places to retire on a budget of less than $45,000 per year are primarily in the South and Midwest.

Mississippi, Kansas, and Alabama were ranked first, second, and third, respectively. Oklahoma, Georgia, Tennessee, and Missouri rounded out the middle-ranking states with the cheapest annual retirement costs.

Iowa, West Virginia, and Indiana round up the bottom of the rankings.

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