24 States Where Your Retirement Will Cost Less Than $50,000 a Year

Are there any states in the United States where you can comfortably retire without a million dollars? 

The answer is yes. To find every state where retirement costs less than $50,000 per year, GOBankingRates referenced data from the Bureau of Labor Statistics’ 2021 Consumer Expenditure Survey and the cost of living index data for 2022 from the Missouri Economic Research and Information Center. Estimated annual spending was also included across five necessity categories: groceries, housing, utilities, transportation and health. 

Here are the 24 states where your retirement will cost less than $50,000 a year.

• Annual expenditures: $49,899
• Annual grocery cost: $4,394
• Annual housing cost: $9,348
• Annual utilities cost: $3,737
• Annual transportation cost: $3,734
• Annual health cost: $7,670

• Annual expenditures: $49,795
• Annual grocery cost: $4,385
• Annual housing cost: $8,860
• Annual utilities cost: $4,054
• Annual transportation cost: $3,906
• Annual health cost: $8,211

• Annual expenditures: $49,482
• Annual grocery cost: $4,205
• Annual housing cost: $8,029
• Annual utilities cost: $4,160
• Annual transportation cost: $4,320
• Annual health cost: $5,554

• Annual expenditures: $49,273
• Annual grocery cost: $4,690
• Annual housing cost: $9,650
• Annual utilities cost: $3,521
• Annual transportation cost: $3,787
• Annual health cost: $6,650

• Annual expenditures: $49,169
• Annual grocery cost: $4,510
• Annual housing cost: $8,476
• Annual utilities cost: $4,337
• Annual transportation cost: $3,730
• Annual health cost: $6,735

• Annual expenditures: $49,013
• Annual grocery cost: $4,434
• Annual housing cost: $9,182
• Annual utilities cost: $3,513
• Annual transportation cost: $4,046
• Annual health cost: $7,093

• Annual expenditures: $48,804
• Annual grocery cost: $4,380
• Annual housing cost: $9,006
• Annual utilities cost: $3,423
• Annual transportation cost: $3,963
• Annual health cost: $7,079

• Annual expenditures: $48,283
• Annual grocery cost: $4,430
• Annual housing cost: $8,517
• Annual utilities cost: $3,635
• Annual transportation cost: $4,341
• Annual health cost: $6,918

• Annual expenditures: $48,230
• Annual grocery cost: $4,641
• Annual housing cost: $8,559
• Annual utilities cost: $3,235
• Annual transportation cost: $4,013
• Annual health cost: $6,749

• Annual expenditures: $48,230
• Annual grocery cost: $4,061
• Annual housing cost: $8,798
• Annual utilities cost: $4,027
• Annual transportation cost: $3,791
• Annual health cost: $6,664

• Annual expenditures: $48,074
• Annual grocery cost: $4,119
• Annual housing cost: $8,424
• Annual utilities cost: $3,878
• Annual transportation cost: $4,050
• Annual health cost: $6,854

• Annual expenditures: $47,918
• Annual grocery cost: $4,452
• Annual housing cost: $7,821
• Annual utilities cost: $3,698
• Annual transportation cost: $3,959
• Annual health cost: $6,861

• Annual expenditures: $47,918
• Annual grocery cost: $4,380
• Annual housing cost: $8,621
• Annual utilities cost: $3,415
• Annual transportation cost: $4,058
• Annual health cost: $7,269

• Annual expenditures: $47,240
• Annual grocery cost: $4,169
• Annual housing cost: $8,091
• Annual utilities cost: $3,823
• Annual transportation cost: $3,771
• Annual health cost: $5,765

• Annual expenditures: $47,031
• Annual grocery cost: $4,245
• Annual housing cost: $8,486
• Annual utilities cost: $3,678
• Annual transportation cost: $3,713
• Annual health cost: $6,320

• Annual expenditures: $46,927
• Annual grocery cost: $4,439
• Annual housing cost: $7,146
• Annual utilities cost: $3,701
• Annual transportation cost: $4,563
• Annual health cost: $7,157

• Annual expenditures: $46,875
• Annual grocery cost: $4,214
• Annual housing cost: $8,040
• Annual utilities cost: $4,078
• Annual transportation cost: $3,857
• Annual health cost: $6,714

• Annual expenditures: $46,510
• Annual grocery cost: $4,475
• Annual housing cost: $7,427
• Annual utilities cost: $3,674
• Annual transportation cost: $3,931
• Annual health cost: $7,030

• Annual expenditures: $46,458
• Annual grocery cost: $4,290
• Annual housing cost: $8,299
• Annual utilities cost: $3,717
• Annual transportation cost: $3,767
• Annual health cost: $6,489

• Annual expenditures: $46,197
• Annual grocery cost: $4,254
• Annual housing cost: $7,853
• Annual utilities cost: $3,541
• Annual transportation cost: $3,684
• Annual health cost: $6,650

• Annual expenditures: $45,936
• Annual grocery cost: $4,389
• Annual housing cost: $7,229
• Annual utilities cost: $3,948
• Annual transportation cost: $3,689
• Annual health cost: $6,299

• Annual expenditures: $45,623
• Annual grocery cost: $4,214
• Annual housing cost: $7,385
• Annual utilities cost: $3,843
• Annual transportation cost: $3,922
• Annual health cost: $7,058

• Annual expenditures: $44,737
• Annual grocery cost: $4,214
• Annual housing cost: $7,292
• Annual utilities cost: $3,729
• Annual transportation cost: $3,730
• Annual health cost: $6,411

• Annual expenditures: $44,320
• Annual grocery cost: $4,155
• Annual housing cost: $7,001
• Annual utilities cost: $3,490 
• Annual transportation cost: $3,771
• Annual health cost: $6,868

Methodology: To find every state where retirement costs less than $50,000 per year, GOBankingRates first referenced data from the Bureau of Labor Statistics’ 2021 Consumer Expenditure Survey to find (1) the national average total annual expenditures for consumers 65 years and older. Then, GOBankingRates used cost-of-living index data for 2022 from the Missouri Economic Research and Information Center to find (2) the cost-of-living index score of every state. Multiplying factor (1) by factor (2) for every state, GOBankingRates was able to estimate (3) the total annual expenditures for a consumer 65 years or older living in each state. Supplemental data was included on each state’s cost-of-living index score and estimated annual spending in the following five necessity categories: grocery, housing, utilities, transportation and health. All data was collected on and up to date as of March 15, 2023.

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