Many older Americans may be wondering anxiously about where they can settle down in their later years with limited budgets.
There are 20 states where retirees can live “comfortably” on less than $65,000 a year. According to new analysis From GOBankingRates.
That includes rural areas in the South and Midwest, where housing, utilities and groceries tend to be cheaper.
At the other end of the spectrum, the highest cost of living for retirees is in states with high housing costs.
In Hawaii, the most expensive state, a comfortable retirement costs $129,296 a year, according to the study.
That's an astonishing $71,000 more than the cheapest state on the list, West Virginia, which costs just $58,190.
To calculate how much it costs to retire comfortably in each state, the study considered five factors across all 50 states.
GOBankingRates looked at labor statistics data on how much residents spend on groceries, health care, housing, utilities and transportation and calculated the annual income needed to cover these living costs.
The researchers then added a 20% cash buffer to help retirees live “comfortably.”
Many older Americans live on Social Security payments or fixed incomes, so it's important to have extra savings to fall back on in case of emergencies.
Oklahoma follows West Virginia as the least expensive place for Americans to retire comfortably, with a required annual salary of $59,995.
In Kansas, the study estimated that retirees need $60,620 to cover essential living expenses and still have money left over, compared to $61,176 in Alabama.
Rounding off the top 11, Mississippi, Arkansas, Missouri, Iowa, Indiana and Tennessee all have annual budgets of less than $63,000.
The 20 states where Americans can retire comfortably on less than $65,000 a year include the most populous states like Georgia, Texas and Illinois.
In Georgia, retirees need an income of $63,398 for a comfortable retirement, in Texas they need $64,162, and in Illinois they need an average of $64,787.
In New Mexico, you need an average annual income of $64,995 to cover your living expenses, and you'll need to have some extra cash left over.
West Virginia is the least expensive state on the list, allowing Americans to retire comfortably on an annual income of $58,190.
The top 11, all with annual budgets of less than $63,000, are Mississippi (pictured), Arkansas, Missouri, Iowa, Indiana, and Tennessee.
Oklahoma follows West Virginia as the least expensive place for Americans to retire comfortably, requiring an annual salary of $59,995 (Photo: Oklahoma City)
The median annual cost to retire well across the United States is $66,870, based on: CNBC Data calculations.
The states where retirees need the highest annual incomes to enjoy a comfortable retirement are those with particularly high housing costs.
Hawaii, California and Massachusetts are experiencing housing shortages and real estate prices are skyrocketing.
This means the annual cost of a comfortable retirement exceeds six figures in all three states.
