States Where Retirees Pay the Least for Everyday Essentials

Millions of retirees are feeling the squeeze as inflation erodes the buying power of their fixed incomes. But a new GOBankingRates study pinpoints the U.S. states where essential goods and services remain most affordable for Americans 65 and older.

The analysis reveals a significant geographic divide, with the Southern and Midwestern regions dominating the list of budget-friendly destinations. States like Oklahoma and Mississippi lead the way, offering cost-of-living indexes well below the national average.

The list includes the 31 states with overall cost-of-living indexes below the national median of 100. GOBankingRates produced the list by analyzing data from the U.S. Census, the Missouri Economic and Research Information Center, the Bureau of Labor Statistics, Zillow, and the Federal Reserve.

• While Oklahoma has the lowest overall cost-of-living index, Mississippi offers the lowest actual monthly necessity cost at just $2,225 — saving retirees over $900 per month compared to states like Utah ($3,130).
• In nearly every state on this list, housing represents the lowest cost-of-living category. Oklahoma, Alabama and West Virginia see housing indices as low as 68.8 to 71.2, significantly below the national average.
• Despite low overall costs, healthcare and utilities frequently index above the national average. Healthcare is particularly expensive for retirees in North Carolina (110.2) and North Dakota (108.8), while utilities spike in states such as Oklahoma and Pennsylvania.
• West Virginia stands out not only for its low cost but for having the highest concentration of residents 65 and over (21.9%), followed closely by Montana (21.2%) and Pennsylvania (20.4%).
• Even within these 31 relatively low-cost states, there is nearly a $1,000 gap in monthly necessity spending between the most affordable (Mississippi at $2,225) and the least affordable (Utah at $3,130).

Here’s a look at the 31 states that made the list, ranked in order of lowest cost-of-living index.

Also see the retirement cost in every state’s biggest cities.

• Cost-of-living index: 84.7
• Highest COL index: Utilities, 98.2
• Lowest COL index: Housing, 68.8
• Monthly cost of necessities: $2,349
• % of population 65+: 16.9%

• Cost-of-living index: 86.0
• Highest COL index: Grocery, 95.5
• Lowest COL index: Housing, 71.6
• Monthly cost of necessities: $2,225
• % of population 65+: 18.1%

• Cost-of-living index: 88.0
• Highest COL index: Transportation, 97.8
• Lowest COL index: Housing, 71.2
• Monthly cost of necessities: $2,235
• % of population 65+: 21.9%

• Cost-of-living index: 88.1
• Highest COL index: Utilities, 98.0
• Lowest COL index: Housing, 71.2
• Monthly cost of necessities: $2,359
• % of population 65+: 18.5%

• Cost-of-living index: 88.4
• Highest COL index: Utilities, 98.1
• Lowest COL index: Housing, 76.9
• Monthly cost of necessities: $2,397
• % of population 65+: 18.0%

• Cost-of-living index: 88.9
• Highest COL index: Healthcare, 100.3
• Lowest COL index: Housing, 77.5
• Monthly cost of necessities: $2,450
• % of population 65+: 18.7%

• Cost-of-living index: 89.8
• Highest COL index: Transportation, 99.5
• Lowest COL index: Housing, 77.7
• Monthly cost of necessities: $2,390
• % of population 65+: 18.9%

• Cost-of-living index: 90.1
• Highest COL index: Misc, 97.5
• Lowest COL index: Housing, 78.8
• Monthly cost of necessities: $2,282
• % of population 65+: 18.2%

• Cost-of-living index: 90.1
• Highest COL index: Grocery, 96.8
• Lowest COL index: Housing, 82.4
• Monthly cost of necessities: $2,525
• % of population 65+: 17.6%

• Cost-of-living index: 90.7
• Highest COL index: Transportation, 101.0
• Lowest COL index: Housing, 75.4
• Monthly cost of necessities: $2,481
• % of population 65+: 17.6%

• Cost-of-living index: 91.1
• Highest COL index: Healthcare, 108.8
• Lowest COL index: Housing, 75.7
• Monthly cost of necessities: $2,595
• % of population 65+: 17.6%

• Cost-of-living index: 91.1
• Highest COL index: Utilities, 102.9
• Lowest COL index: Housing, 79.4
• Monthly cost of necessities: $2,586
• % of population 65+: 14.0%

• Cost-of-living index: 91.5
• Highest COL index: Misc, 101.9
• Lowest COL index: Housing, 74.8
• Monthly cost of necessities: $2,368
• % of population 65+: 18.0%

• Cost-of-living index: 91.8
• Highest COL index: Healthcare, 99.6
• Lowest COL index: Housing, 78.7
• Monthly cost of necessities: $2,507
• % of population 65+: 17.4%

• Cost-of-living index: 91.8
• Highest COL index: Healthcare, 106.5
• Lowest COL index: Utilities, 85.2
• Monthly cost of necessities: $2,631
• % of population 65+: 19.0%

• Cost-of-living index: 91.9
• Highest COL index: Transportation, 100.2
• Lowest COL index: Housing, 78.3
• Monthly cost of necessities: $2,451
• % of population 65+: 19.6%

• Cost-of-living index: 92.2
• Highest COL index: Utilities, 100.6
• Lowest COL index: Housing, 79.7
• Monthly cost of necessities: $2,685
• % of population 65+: 15.8%

• Cost-of-living index: 92.7
• Highest COL index: Grocery, 99.0
• Lowest COL index: Housing, 80.6
• Monthly cost of necessities: $2,588
• % of population 65+: 19.8%

• Cost-of-living index: 92.9
• Highest COL index: Misc, 100.0
• Lowest COL index: Utilities, 83.6
• Monthly cost of necessities: $2,298
• % of population 65+: 17.8%

• Cost-of-living index: 93.6
• Highest COL index: Healthcare, 102.4
• Lowest COL index: Housing, 80.6
• Monthly cost of necessities: $2,750
• % of population 65+: 18.2%

• Cost-of-living index: 93.7
• Highest COL index: Healthcare, 108.3
• Lowest COL index: Utilities, 83.8
• Monthly cost of necessities: $2,635
• % of population 65+: 20.1%

• Cost-of-living index: 94.6
• Highest COL index: Grocery, 99.4
• Lowest COL index: Housing, 87.6
• Monthly cost of necessities: $2,461
• % of population 65+: 19.1%

• Cost-of-living index: 94.6
• Highest COL index: Grocery, 99.8
• Lowest COL index: Housing, 87.1
• Monthly cost of necessities: $2,740
• % of population 65+: 20.0%

• Cost-of-living index: 95.0
• Highest COL index: Healthcare, 104.1
• Lowest COL index: Housing, 84.3
• Monthly cost of necessities: $2,638
• % of population 65+: 17.9%

• Cost-of-living index: 96.8
• Highest COL index: Healthcare, 106.5
• Lowest COL index: Utilities, 81.5
• Monthly cost of necessities: $3,021
• % of population 65+: 21.2%

• Cost-of-living index: 97.1
• Highest COL index: Utilities, 108.7
• Lowest COL index: Housing, 86.8
• Monthly cost of necessities: $2,598
• % of population 65+: 20.4%

• Cost-of-living index: 97.9
• Highest COL index: Healthcare, 110.2
• Lowest COL index: Transportation, 92.2
• Monthly cost of necessities: $2,747
• % of population 65+: 17.9%

• Cost-of-living index: 98.5
• Highest COL index: Healthcare, 99.8
• Lowest COL index: Utilities, 91.2
• Monthly cost of necessities: $2,669
• % of population 65+: 19.6%

• Cost-of-living index: 99.3
• Highest COL index: Healthcare, 106.9
• Lowest COL index: Utilities, 73.0
• Monthly cost of necessities: $3,036
• % of population 65+: 17.8%

• Cost-of-living index: 99.5
• Highest COL index: Housing, 108.8
• Lowest COL index: Utilities, 82.4
• Monthly cost of necessities: $3,130
• % of population 65+: 12.4%

• Cost-of-living index: 99.7
• Highest COL index: Transportation, 115.3
• Lowest COL index: Utilities, 85.6
• Monthly cost of necessities: $2,991
• % of population 65+: 17.6%

Methodology: For this study, GOBankingRates analyzed each U.S. State to find the places where retirees pay the least for essentials. GOBankingRates conducted a comprehensive study utilizing 2024 U.S. Census American Community Survey data for population demographics and median household income, alongside 2025 cost-of-living indices from the Missouri Economic and Research Information Center. By integrating average expenditure data for retired consumer units from the Bureau of Labor Statistics with Zillow Home Value Index figures — factoring in a 10% down payment and current Federal Reserve 30-year fixed mortgage rates — the study calculated the total monthly and annual cost of necessities for each state. The final rankings prioritize states with the lowest overall cost-of-living indices to highlight the most budget-friendly locations for senior living. All data is up to date as of Feb. 10, 2026.