10 Most Affordable States for Baby Boomers

Many baby boomers are in a financially-solvent place and able to live out their golden years in comfort. But many boomers are not.

These folks may not have enough retirement savings to leave the workforce permanently, and find themselves struggling to make ends meet. If you’re on a frugal budget in retirement or preparing for retirement in the next few years, it’s important to know where your money will go the furthest.

In a new study, GOBankingRates analyzed each U.S. state to find the average monthly expenses and the highest expenditure cost for different generations. From there, we found the 10 most affordable states for baby boomers.

The 10 states are ranked from most to least expensive in terms of cost of living for boomers, with the cheapest state claiming the No. 1 spot.

• Household median income: $67,173 
• Boomers’ monthly average expenditures cost: $2,811 
• Highest-costing expenditure: Utilities
• Total cost of living monthly for boomers: $4,144 
• Total cost of living annually for boomers: $49,727

• Household median income: $69,747 
• Boomers’ monthly average expenditures cost: $2,845 
• Highest-costing expenditure: Transportation 
• Total cost of living monthly for boomers: $4,108 
• Total cost of living annually for boomers: $49,300

• Household median income: $70,571  
• Boomers’ monthly average expenditures cost: $2,807 
• Highest-costing expenditure: Transportation 
• Total cost of living monthly for boomers: $4,039 
• Total cost of living annually for boomers: $48,472

• Household median income: $59,609  
• Boomers’ monthly average expenditures cost: $2,779 
• Highest-costing expenditure: Housing  
• Total cost of living monthly for boomers: $4,023 
• Total cost of living annually for boomers: $48,272

• Household median income: $60,183 
• Boomers’ monthly average expenditures cost: $2,795 
• Highest-costing expenditure: Transportation 
• Total cost of living monthly for boomers: $3,935 
• Total cost of living annually for boomers: $47,215 

• Household median income: $61,364 
• Boomers’ monthly average expenditures cost: $2,746 
• Highest-costing expenditure: Grocery 
• Total cost of living monthly for boomers: $3,882 
• Total cost of living annually for boomers: $46,580

• Household median income: $56,335 
• Boomers’ monthly average expenditures cost: $2,732 
• Highest-costing expenditure: Miscellaneous 
• Total cost of living monthly for boomers: $3,868 
• Total cost of living annually for boomers: $46,418

• Household median income: $57,852 
• Boomers’ monthly average expenditures cost: $2,702 
• Highest-costing expenditure: Miscellaneous 
• Total cost of living monthly for boomers: $3,820 
• Total cost of living annually for boomers: $45,835

• Household median income: $55,217 
• Boomers’ monthly average expenditures cost: $2,813  
• Highest-costing expenditure: Transportation  
• Total cost of living monthly for boomers: $3,729 
• Total cost of living annually for boomers: $44,754

• Household median income: $52,985 
• Boomers’ monthly average expenditures cost: $2,738 
• Highest-costing expenditure: Transportation  
• Total cost of living monthly for boomers: $3,726 
• Total cost of living annually for boomers: $44,716  

Methodology: For this study, GOBankingRates analyzed each U.S. state to find the average monthly expenses and the highest expenditure cost for different generations. First, GOBankingRates found information on each state including: total population, population ages 65 and over, total households, household median income — all sourced from the U.S. Census American Community Survey. The cost of living indexes for each state was sourced from Missouri Economic Research Information Center. For each cost of living index, the average expenditure cost can be calculated using the Bureau of Labor Statistics Consumer Expenditure Survey 2602 for different generations. The generations are defined as: Gen Z born between 1997 or later, millennials born between 1981 and1997, Gen X born between 1965 and1980, and boomers born between 1946 and 1964. This calculation gives the average expenditure cost of living for each generation in each state. Using the average home value as sourced from Zillow Home Value Index for August 2024, assuming a 10% down payment, and using the national average 30-year fixed mortgage rate as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. Using the average mortgage and expenditure costs, the total cost of living can be calculated for each state and for each generation. The highest expenditure index and average monthly cost were also shown to find the highest expenditure cost for each state. The states were sorted to show the cheapest to most expensive total cost of living. The data was collected on and is up to date as of Aug. 24, 2024.