Many Americans lack the retirement resources to cover the expense of living in their home states when their working years are done. If you’re thinking about moving somewhere cheaper in retirement, you’re not alone.
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 assets further, reducing some financial worry.
it utilized data from the Bureau of Labor Statistics to identify the top 10 places where you may 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 general 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.
In this article, the data are per family. 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.
$43,107 in annual expenses
In Indiana, where pensioners can retire without paying outrageous expenditures, early retirement may be viable. 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 (#9)
$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.
$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.
$42,726 in annual expenses
In Mississippi, where seniors spend only $7,962 per year on housing, early retirement is a distinct possibility. The food bill is also affordable for retirees, at $3,994.
Tennessee, no. 6
$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.
$42,250 in annual expenses
With an annual housing cost of around $7,377, Georgia makes it easy for retirees to call this gorgeous state home. Other costs aren’t prohibitively expensive: Annually, utilities cost $3,424 and 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. Housing costs only $7,470 per year, with utilities at $3,598 and healthcare at $6,301.
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$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.
$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.
$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. Utilities cost $3,420, while health care is only $6,315.
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 five states with the lowest annual retirement costs.
Iowa, West Virginia, and Indiana round up the bottom of the rankings.