When planning for retirement, where you live can significantly impact how long your savings last. States vary widely in the cost of housing, healthcare, utilities, and other essentials. In this guide, we break down the most affordable states for retirees, based on cost of living data, to help you find the best place to stretch your budget without sacrificing comfort.
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Alabama
- Overall cost of living index: 88.0
- Groceries: 97.2
- Housing: 69.5
- Utilities: 100.0
- Transportation: 90.8
- Healthcare: 87.0
With an overall cost of living index of 88.0 and housing at just 69.5, Alabama is an affordable option for retirees. Healthcare costs are well below average at 87.0. Although utilities are at the national average, groceries and transportation are slightly cheaper, helping your money go further.
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Arkansas
- Overall cost of living index: 88.7
- Groceries: 95.2 Housing: 77.8
- Utilities: 90.7
- Transportation: 90.0
- Healthcare: 85.7
Retirees in Arkansas benefit from a cost-of-living index of 88.7. Housing is affordable at 77.8, and healthcare costs are even lower at 85.7. Groceries, utilities, and transportation all fall below national averages, making Arkansas a budget-friendly retirement choice. Need a little extra income in retirement?
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Mississippi
- Overall cost of living index: 87.9
- Groceries: 96.3
- Housing: 73.9
- Utilities: 88.9
- Transportation: 89.8
- Healthcare: 99.3
With a low overall cost of living at 87.9, Mississippi is an excellent choice for retirees seeking to maximize their savings. Housing is particularly inexpensive at 73.9. However, healthcare is closer to the national average, so budget accordingly.
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Oklahoma
- Overall cost of living index: 85.7
- Groceries: 95.4
- Housing: 68.6
- Utilities: 95.4
- Transportation: 90.7
- Healthcare: 96.6
Oklahoma's cost of living index is just 85.7, making it one of the most affordable states. Housing is very cheap at 68.6, while healthcare, utilities, and groceries remain below average. This combination makes it ideal for retirees seeking value.
West Virginia
- Overall cost of living index: 84.1
- Groceries: 99.0
- Housing: 59.9
- Utilities: 96.9
- Transportation: 93.1
- Healthcare: 97.7
West Virginia offers the lowest overall cost of living at 84.1, with incredibly low housing costs at 59.9. While groceries and utilities are near the national average, affordable healthcare at 97.7 adds value for retirees.
Kentucky
- Overall cost of living index: 93.0
- Groceries: 99.8
- Housing: 78.7
- Utilities: 83.9
- Transportation: 96.8
- Healthcare: 106.6
With a cost-of-living index of 93.0 and housing at 78.7, Kentucky is moderately affordable. Utilities are especially cheap at 83.9. However, healthcare costs are slightly above average, so it's a mixed bag for retirees.
Missouri
- Overall cost of living index: 88.7
- Groceries: 96.0
- Housing: 77.8
- Utilities: 98.8
- Transportation: 87.2
- Healthcare: 91.8
Missouri’s cost of living stands at 88.7, with housing at a modest 77.8. Healthcare, transportation, and groceries are all below national averages, helping retirees maintain a comfortable lifestyle without overspending.
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Georgia
- Overall cost of living index: 91.3
- Groceries: 97.3
- Housing: 79.2
- Utilities: 97.4
- Transportation: 96.0
- Healthcare: 100.4
Georgia's cost of living index is 91.3. Retirees benefit from affordable housing at 79.2 and groceries at 97.3. While healthcare is near average, utilities and transportation remain affordable.
Tennessee
- Overall cost of living index: 90.5
- Groceries: 97.1
- Housing: 83.2
- Utilities: 87.2
- Transportation: 89.1
- Healthcare: 88.6
Tennessee has a cost-of-living index of 90.5. Housing is low at 83.2, and healthcare costs are also below average at 88.6. With no state income tax, retirees can stretch their dollars even more.
Indiana
- Overall cost of living index: 90.5
- Groceries: 97.3
- Housing: 77.1
- Utilities: 90.5
- Transportation: 98.7
- Healthcare: 97.3
With a cost-of-living index of 90.5, Indiana provides low-cost housing at 77.1 and reasonable healthcare at 97.3. Groceries, transportation, and utilities are all under control, making it a sensible retirement choice.
Michigan
- Overall cost of living index: 90.4
- Groceries: 98.2
- Housing: 73.7
- Utilities: 98.0
- Transportation: 99.6
- Healthcare: 89.3
Michigan offers a cost-of-living index of 90.4. Housing is very affordable at 73.7, and healthcare is at 89.3. Utility and grocery costs are near average, making Michigan an economically sound place to retire.
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Texas
- Overall cost of living index: 92.7
- Groceries: 96.1
- Housing: 82.0
- Utilities: 105.3
- Transportation: 92.8
- Healthcare: 94.5
Texas combines no state income tax with a cost of living index of 92.7. Housing is reasonably priced at 82.0, though utilities are above average. Healthcare and groceries are manageable, especially in less urban areas.
North Carolina
- Overall cost of living index: 97.8
- Groceries: 98.4
- Housing: 93.3
- Utilities: 97.1
- Transportation: 93.6
- Healthcare: 104.7
North Carolina’s cost of living index is 97.8. While not the cheapest, housing at 93.3 and groceries at 98.4 are reasonable. Healthcare costs are above average, but the overall lifestyle and amenities may justify the expense.
South Carolina
- Overall cost of living index: 95.9
- Groceries: 99.3
- Housing: 86.7
- Utilities: 102.3
- Transportation: 94.7
- Healthcare: 93.0
South Carolina has a cost-of-living index of 95.9. Housing and healthcare are affordable, though utilities are slightly high. Its mild climate and tax benefits often appeal to retirees.
New Mexico
- Overall cost of living index: 93.3
- Groceries: 96.4
- Housing: 86.9
- Utilities: 84.3
- Transportation: 90.1
- Healthcare: 102.7
New Mexico's cost of living index is 93.3. Housing is affordable at 86.9, and utilities are especially low at 84.3. However, healthcare costs are slightly above average.
Iowa
- Overall cost of living index: 89.7
- Groceries: 96.6
- Housing: 74.8
- Utilities: 82.9
- Transportation: 97.6
- Healthcare: 95.8
Iowa’s cost of living index is 89.7. Housing is very affordable at 74.8, and utilities are well below average. Healthcare costs are also low, making Iowa a great option for budget-conscious retirees.
Kansas
- Overall cost of living index: 87.0
- Groceries: 94.8
- Housing: 72.4
- Utilities: 98.7
- Transportation: 90.1
- Healthcare: 94.5
Kansas is a low-cost state with an index of 87.0. Housing is extremely affordable at 72.4, and utilities and healthcare are below average. This makes Kansas a hidden gem for stretching retirement savings.
Pennsylvania
- Overall cost of living index: 95.1
- Groceries: 99.2
- Housing: 84.3
- Utilities: 106.0
- Transportation: 104.3
- Healthcare: 90.6
Pennsylvania’s cost of living index is 95.1. Housing and healthcare are affordable, but utilities and transportation are costly. It's a mixed landscape depending on location.
Wisconsin
- Overall cost of living index: 97.0
- Groceries: 98.0
- Housing: 91.6
- Utilities: 92.6
- Transportation: 98.3
- Healthcare: 106.4
Wisconsin has a cost-of-living index of 97.0. While housing and groceries are affordable, healthcare costs are above average. Consider rural areas for lower expenses.
Louisiana
- Overall cost of living index: 92.2
- Groceries: 96.1
- Housing: 83.8
- Utilities: 78.5
- Transportation: 95.4
- Healthcare: 96.6
Louisiana offers a cost-of-living index of 92.2. Housing and utilities are affordable, and healthcare costs are moderate, making it a well-balanced choice for retirees.
North Dakota
- Overall cost of living index: 91.9
- Groceries: 95.0
- Housing: 80.1
- Utilities: 81.0
- Transportation: 99.8
- Healthcare: 108.2
North Dakota’s cost of living index is 91.9. Housing is reasonably priced at 80.1, but healthcare costs are high. Utilities are very affordable.
South Dakota
- Overall cost of living index: 92.2
- Groceries: 97.5
- Housing: 88.1
- Utilities: 83.5
- Transportation: 98.3
- Healthcare: 101.0
South Dakota’s cost of living index is 92.2. Housing is moderately priced, and utilities are inexpensive. With no state income tax, retirees can stretch their savings further.
