Retirement is supposed to be a time of relaxation, but that’s hard to do if your cost of living is sky-high. Some states offer a much lower cost of living, making it easier for retirees to stretch their savings. Affordable housing and lower taxes mean these states make retirement more financially comfortable.
If you’re looking for a place where your money goes further, these states are worth considering.
Mississippi
Affordability is one of Mississippi’s strongest selling points for retirees. Housing costs are among the lowest in the country, and property taxes remain minimal. Groceries, healthcare, and transportation are all cheaper than in many other states. The warm climate means retirees don’t have to worry about harsh winters, which helps save on heating bills.
Arkansas
A combination of low home prices and affordable everyday expenses makes Arkansas the perfect place to settle down. The state doesn’t tax Social Security benefits, which helps stretch fixed incomes. Cities like Little Rock and Fayetteville provide modern conveniences without the hefty price tags seen in other parts of the country.
The scenic beauty, from the Ozark Mountains to the hot springs, makes it a peaceful and picturesque place.
Oklahoma
The wide open spaces of Oklahoma are a great option. The cost of living is significantly lower than the national average, with housing particularly affordable. Healthcare expenses are lower compared to many states, and there’s no tax on Social Security benefits. With friendly communities and a relaxed pace of life, it’s an ideal place to keep your costs low.
West Virginia
Natural beauty and affordable living make West Virginia a top choice for retirees on a budget. Housing is among the most inexpensive in the nation, and the state doesn’t tax Social Security benefits. The slower lifestyle, small-town charm, and scenic mountain views create a peaceful setting. You’ll appreciate lower-than-average healthcare costs, too.
Alabama
Alabama offers a warm climate, low taxes, and an affordable cost of living. Housing is reasonably priced, and the state doesn’t tax Social Security income. The Gulf Coast provides scenic coastal living without the high costs found in Florida.
Many communities cater to retirees, offering a mix of small-town charm and big-city amenities at a fraction of the cost of other retirement hotspots.
Kentucky
If you’re looking for a low cost of living with a touch of Southern charm, Kentucky is a great choice. Housing costs are well below the national average, and the state has relatively low property taxes. The rolling hills and scenic countryside create a peaceful environment, and access to quality healthcare is another bonus.
Louisiana
A rich culture, warm climate, and low cost of living await retirees in Louisiana. Housing and food costs are particularly affordable, and there’s no tax on Social Security income. The vibrant cities of New Orleans and Baton Rouge offer entertainment and dining without breaking the bank.
Small towns throughout the state provide quiet, budget-friendly retirement options. Mild winters also help keep utility costs down.
Missouri
The central location of Missouri as well as all-round affordability make this state appealing. Housing is inexpensive, and the cost of living is lower than the national average. Social Security benefits are not taxed for most retirees, which helps stretch fixed incomes. There’s a choice of of city and rural living, with places like Branson providing plenty of entertainment.
Georgia
A low cost of living and a warm climate make Georgia ideal for retirement. Housing is affordable, especially in smaller towns and suburbs. The state doesn’t tax Social Security benefits, and property taxes are relatively low. You can enjoy the mountains, beaches, and vibrant city life in places like Atlanta or Savannah without worrying about your budget.
Healthcare options are strong, adding another layer of security.
Tennessee
Tennessee is one of the most tax-friendly states for retirees, with no state income tax and no tax on Social Security benefits. The cost of living is well below the national average, with housing being particularly affordable. Cities like Chattanooga and Knoxville provide great retirement spots with access to healthcare, culture, and outdoor recreation.
Texas
The Lone Star State is known for its lack of state income tax, which makes it a budget-friendly choice for retirement. Housing is affordable in most areas, particularly in smaller towns. The warm climate reduces heating costs, and the state has a strong healthcare system.
South Carolina
Are you looking for a mix of coastal living and affordability? If so, you’ll find South Carolina appealing. The state doesn’t tax Social Security benefits, and property taxes are low. Housing costs remain reasonable, particularly in inland areas.
The weather and scenic beaches provide a wonderful environment for those seeking an active lifestyle without high expenses.
North Carolina
Retirement in North Carolina offers a variety of affordable living options, from mountain retreats to coastal towns. The cost of living is lower than the national average, and property taxes are manageable. Healthcare is widely available, and the state doesn’t tax Social Security benefits. Enjoy beautiful scenery, a mild climate, and a relaxed pace of life without stretching your retirement savings too thin.
Indiana
Here’s another state where you can retire comfortably on a smaller budget. Housing is especially affordable, and overall living costs remain low. The state offers a mix of small-town charm and urban conveniences, with Indianapolis providing a central hub for healthcare and entertainment. This is a quiet and budget-friendly place to settle down.
New Mexico
The dry climate and affordability of New Mexico make it an attractive option. The cost of living is relatively low, particularly for housing. Healthcare is accessible, and there are plenty of cultural and outdoor activities to enjoy. Cities like Albuquerque and Santa Fe offer amenities without the high costs of other popular retirement destinations.
Idaho
An increasingly popular choice for retirees looking for affordability and natural beauty is Idaho. Housing costs are lower than in many neighboring states, while healthcare remains affordable. The state’s outdoor recreation opportunities provide an active lifestyle without high expenses.
Michigan
Housing is affordable in Michigan, particularly in smaller towns and rural areas. Retirees can enjoy a low cost of living with plenty of scenic beauty. The Great Lakes provide a stunning backdrop for retirement, and healthcare access is strong.
With a lower overall tax burden, this state remains an underrated but great choice for stretching your budget.