5 States Where You Can Hang On to Your Retirement Savings the Longest Over the Next Decade

In a recent BlackRock retirement survey, an estimated 60% of people across all generations said they’re concerned about outliving their retirement savings.

Since a major part of retirement planning entails figuring out not just how you want to live but where, it’s crucial to make the right decision for you. This means looking at your financial situation, getting ahead of your healthcare needs (current and anticipated) and choosing a place where you can envision yourself living comfortably and happily for the long haul.

Retirement planning also involves estimating your own longevity so that you can get an idea of how long your retirement savings will last you. According to Visual Capitalist, the average retirement savings varies by age — $537,560 (for those ages 55 to 64) and $609,230 (ages 65 to 74).

If you anticipate a 20-year retirement, which is also about average, that’s just $26,878 to $30,461 a year (excluding Social Security, pensions and other sources of income).

Regardless of how much money you have set aside for retirement, the last thing you need is to worry about running out. Here are five states where you can hang on to your retirement savings the longest over the next 10 years or so.

“In Mississippi, the cost of housing is particularly low, and everyday expenses like groceries and utilities are also below the national average,” said Derek DiManno, founding financial advisor at Flagship Asset Services.

There, you could comfortably retire on as little as $35,000 to $40,000 a year.

According to the Missouri Economic Research and Information Center (MERIC), the overall cost of living index in Mississippi is just 87.7, making it the fifth-least expensive state to live in. Housing and healthcare are particularly affordable there.

“I often advise clients looking to stretch their retirement savings to consider states with a lower cost of living,” said Steven Kibbel, a financial planner, entrepreneur and chief editorial advisor at Gold IRA Companies. One such state is Arkansas.

According to BestPlaces, Arkansas’ cost of living is 22.5% lower than the national average. For an individual, the minimum recommended amount needed per year is $27,600.

Healthcare is also more affordable in Arkansas, according to Kibbel. Considering how important this can be to retirees, especially older ones, this is a major plus.

Oklahoma has an overall cost-of-living index of just 85.3, the second lowest in the country. Housing, utilities, transportation, groceries and healthcare are all much lower than the national average. Property taxes also tend to be low, said DiManno.

BestPlaces found that the average individual needs around $30,000 a year to afford a comfortable lifestyle. A typical home there also costs under $200,000, which is especially good for those who plan to sell their current property — or rent it out for extra retirement income — and move to the state.

Kibbel also said that Missouri is a state where retirees can stretch their retirement savings much further. The cost-of-living index is 88.6, with only utilities being about on par with the national average (everything else is noticeably cheaper).

In a given year, the average retiree would need $30,800 to live comfortably.

Last but not least is Tennessee.

“Tennessee is attractive for its lack of state income tax, on top of living costs about 10% below average,” said Kibbel.

Not having state income tax is huge, but the fact that the average person only needs about $36,000 a year to live there is even better. With a cost-of-living index f 90.8, Tennessee is also the 10th-most affordable state in the U.S.

There are a lot of factors to consider when planning your retirement, including the tax-friendliness, access to affordable healthcare and even the climate.

“States that don’t tax Social Security benefits or have low property taxes can help stretch your retirement dollars further,” said DiManno. “For example, in states like Mississippi and Arkansas, a comfortable retirement might cost as little as $35,000 to $45,000 annually, depending on your lifestyle. Over a decade, this lower annual expenditure can significantly extend the life of your retirement savings, giving you more peace of mind and financial security.”

Again, exact costs vary quite a bit from person to person. But compared to what you might be spending in places like New York or California, you should be able to stretch your retirement savings much further.

“To put some concrete numbers to it — let’s say your retirement nest egg is around $500,000,” said Kibbel. “In a higher-cost-of-living area, you might deplete those savings in under 15 years. But in one of these lower-cost states, you could potentially stretch that same amount to last 20 years or more.”