Where you retire matters just as much as how much you’ve saved. A new study from MoneyLion looked at what it actually costs to live comfortably in each state and the numbers tell a pretty dramatic story.
In 13 states, a comfortable retirement runs $100,000 or more per year in total expenses. Hawaii tops the list at $156,610 annually. California comes in second at $121,879, followed by Massachusetts at $111,145.
Washington and New Jersey aren’t far behind at $95,099 and $90,511 respectively. Colorado, New Hampshire, Oregon, Rhode Island, Utah, Alaska, New York, and Connecticut round out the expensive group. Even Connecticut, the most affordable on that list, still requires $77,627 a year.
Where Your Money Goes a Lot Further
If those numbers make your stomach drop a little, here is the good news. There are states where you can live well on a fraction of that, and still have money left over.
According to the same MoneyLion study, these are the 10 most affordable states for retirement:
- West Virginia
- Mississippi
- Louisiana (note: insurance costs along the coast are rising sharply)
- Oklahoma
- Arkansas
- Kentucky
- Iowa
- Alabama
- Kansas
- Ohio
West Virginia ranks as the most affordable of all. There, you only need to draw about $33,223 per year from your personal savings on top of Social Security to live comfortably. Ohio is the priciest on this affordable list at roughly $43,914 out of pocket.
That is a spread of only about $10,000 between the best and worst on that top-10 list. Anyone with $50,000 a year in personal retirement income, combined with Social Security benefits, should be in excellent shape in any of these states.
Cost Is Only Part of the Picture
A low price tag alone should not be the deciding factor. Access to quality healthcare, personal safety, and the things that make daily life enjoyable all matter just as much as the cost of living.
The smartest approach is to write down everything that is non-negotiable for you, whether that is being near family, having good medical facilities nearby, owning a home, or simply having some peace and quiet. Then look at which affordable states check those boxes.
The right retirement location is different for everyone. But knowing which states are budget-friendly is a solid place to start the conversation.