Many older Americans will be anxiously wondering where they can settle down during their later years on a tight budget.
There are 20 states where retirees can live “comfortably” on less than $65,000 a year. according to new analysis by GOBankingRates.
These include rural areas in the South and Midwest, where housing, utilities and food tend to be cheaper.
On the other end of the spectrum, the places with the highest living expenses for retirees are states with high housing costs.
In Hawaii, the most expensive country, a comfortable retirement costs $129,296 a year, according to the study.
This is a whopping $71,000 more than West Virginia, the cheapest state on the list, at just $58,190.
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To calculate how much it takes to retire comfortably in each state, the study considered five factors across all 50 states.
GOBankingRates analyzed data from the Bureau of Labor Statistics on how much residents spend on food, health care, housing, utilities and transportation, and calculated the annual income needed to cover these living expenses.
The researchers then added a 20 percent cash cushion, to account for retirees being able to live “comfortably.”
Many older Americans live off Social Security payments or a fixed income, which means it’s crucial that they have additional savings to fall back on in case of an emergency.
Oklahoma follows West Virginia as the cheapest place for Americans to retire comfortably, with a required annual income of $59,995.
In Kansas, the study estimated that retirees would need $60,620 to cover their necessary living expenses and still have some funds left over, compared to $61,176 in Alabama.
Rounding out the top 11, all with annual budgets under $63,000, are Mississippi, Arkansas, Missouri, Iowa, Indiana and Tennessee.
The 20 states where Americans can have a comfortable retirement for less than $65,000 a year also include some of the most populous, such as Georgia, Texas and Illinois.
In Georgia, retirees need an income of $63,398, in Texas they need $64,162, and in Illinois they need an average of $64,787 for a comfortable retirement.
New Mexico barely makes the cut, where residents need an average annual income of $64,995 to cover their living expenses and have some extra money left over.
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West Virginia is the cheapest state on the list, where Americans can afford a comfortable retirement with an annual income of $58,190.
Rounding out the top 11, all with annual budgets under $63,000, are Mississippi (pictured), Arkansas, Missouri, Iowa, Indiana and Tennessee.
Oklahoma follows West Virginia as the cheapest place for Americans to retire comfortably, with a required annual income of $59,995 (pictured: Oklahoma City)
The average annual cost of retiring comfortably in the United States is $66,870, according to CNBC data calculations.
The states where retirees need the highest annual income for a comfortable life as a retiree are those where housing expenses are particularly high.
In Hawaii, California and Massachusetts, housing is in short supply, which has driven up real estate prices.
This, in turn, means that the annual cost of a comfortable retirement exceeds six figures in all three states.
