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15 U.S. states where you can retire comfortably on less than $65,000 a year

15 U.S. states where you can retire comfortably on less than $65,000 a year
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While building up your retirement savings is important, how much money you'll actually need depends on where you are. That's because the annual cost of living can vary by over $71,000 between U.S. states, according to a recent GOBankingRates analysis.

Hawaii has the highest average retirement expenses, with an estimated $129,296 a year needed to retire comfortably. That's more than twice that of West Virginia, where retirees need $58,190 on average.

To calculate the annual retirement costs for Americans aged 65 and older in each state, the study used Bureau of Labor Statistics estimates for food, shelter, transportation, health care, and utility expenses. A 20% cash buffer was added to this total to ensure retirees could live "comfortably," according to the study.

The large disparity in the cost of living is largely due to high housing costs. In states where housing is in short supply — like Hawaii, California, Massachusetts — the annual cost of retirement exceeds six figures.

The median annual cost of retiring comfortably is $66,870, based on the data. That said, there are 20 states where you can still retire on or under $65,000. They tend to be more rural states in the South, where the cost of living is cheaper lower.

Below is a list of states where annual retirement expenses are $65,000 or less, in alphabetical order.  

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

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