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20 States Where You Can Retire Comfortably With Less Than $65K per Year



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Don’t despair if you don’t have millions tucked away in your retirement savings. Key findings from a GOBankingRates study have revealed it’s possible to enjoy a comfortable retirement in 20 U.S. states for under $65,000 each year.
In this study, GOBankingRates looked at an individual’s spending on groceries, healthcare, housing, utilities and transportation in each of the 50 states to determine the average retirement income necessary for a comfortable retirement lifestyle. This income was then calculated along with an additional 20% comfort buffer.
In alphabetical order, here are the 20 states where less than $65k annually allows you to retire comfortably.
Alabama
- Total expenditures: $50,980
- 20% comfort buffer: $10,196
- Cost of a comfortable retirement annually: $61,176
Arkansas
- Total expenditures: $51,211
- 20% comfort buffer: $10,242
- Cost of a comfortable retirement annually: $61,454
Georgia
- Total expenditures: $52,832
- 20% comfort buffer: $10,566
- Cost of a comfortable retirement annually: $63,398
Illinois
- Total expenditures: $53,989
- 20% comfort buffer: $10,798
- Cost of a comfortable retirement annually: $64,787
Indiana
- Total expenditures: $52,253
- 20% comfort buffer: $10,451
- Cost of a comfortable retirement annually: $62,704
Iowa
- Total expenditures: $52,137
- 20% comfort buffer: $10,427
- Cost of a comfortable retirement annually: $62,565
Kansas
- Total expenditures: $50,517
- 20% comfort buffer: $10,103
- Cost of a comfortable retirement annually: $60,620
Kentucky
- Total expenditures: $53,584
- 20% comfort buffer: $10,717
- Cost of a comfortable retirement annually: $64,301
Louisiana
- Total expenditures: $53,295
- 20% comfort buffer: $10,659
- Cost of a comfortable retirement annually: $63,954
Michigan
- Total expenditures: $53,121
- 20% comfort buffer: $10,624
- Cost of a comfortable retirement annually: $63,745
Mississippi
- Total expenditures: $51,096
- 20% comfort buffer: $10,219
- Cost of a comfortable retirement annually: $61,315
Missouri
- Total expenditures: $51,211
- 20% comfort buffer: $10,242
- Cost of a comfortable retirement annually: $61,454
Nebraska
- Total expenditures: $54,047
- 20% comfort buffer: $10,809
- Cost of a comfortable retirement annually: $64,856
New Mexico
- Total expenditures: $54,163
- 20% comfort buffer: $10,833
- Cost of a comfortable retirement annually: $64,995
North Dakota
- Total expenditures: $53,700
- 20% comfort buffer: $10,740
- Cost of a comfortable retirement annually: $64,440
Oklahoma
- Total expenditures: $49,996
- 20% comfort buffer: $9,999
- Cost of a comfortable retirement annually: $59,995
South Dakota
- Total expenditures: $54,047
- 20% comfort buffer: $10,809
- Cost of a comfortable retirement annually: $64,856
Tennessee
- Total expenditures: $52,253
- 20% comfort buffer: $10,451
- Cost of a comfortable retirement annually: $62,704
Texas
- Total expenditures: $53,468
- 20% comfort buffer: $10,694
- Cost of a comfortable retirement annually: $64,162
West Virginia
- Total expenditures: $48,492
- 20% comfort buffer: $9,698
- Cost of a comfortable retirement annually: $58,190
Methodology: GOBankingRates analyzed the following expenditures of Americans aged 65 and older, based on data sourced from the Bureau of Labor Statistics’ (BLS) most recent Consumer Expenditure Survey release for the full year of 2023: (1) annual spending on groceries, defined as “food at home;” (2) annual spending on housing, defined as “shelter;” (3) annual spending on transportation, defined as “gasoline, other fuels and motor oil” AND “other vehicle expenses;” (4) annual spending on healthcare; (5) annual spending on utilities, defined as “utilities, fuels and public services;” and (6) overall average annual expenditures. Spending estimates were adjusted to the state level by multiplying each cost category by its corresponding cost-of-living index score in each state, sourced from the Missouri Economic Research and Information Center’s 2024 Q2 cost-of-living index data. After calculating total consumption expenditures, an additional (7) savings buffer was calculated by assuming that total expenditures consume 80% of one’s budget (50% for necessities and 30% for discretionary spending), with 20% left over for savings. GOBankingRates then combined factors (6) and (7) and factored it out by 20 (assuming 20 years of retirement) to give (8) retirement savings needed to live comfortably. All data was collected on and up to date as of Oct. 1, 2024.
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