Good news: the South is by far the cheapest place to live out the rest of your days.
If, like many Americans, you’re wondering how much money you need to comfortably retire, you’re in luck: the South is by far the cheapest place to live out the rest of your days.
And that’s not hyperbole.
A recent study to pinpoint the average retirement income required to live comfortably throughout the U.S. by GOBankingRates found that 9 of the 10 cheapest states to retire are located below the Mason Dixon line. Hooray!
Because the cost of living varies from state to state, GOBankingRates looked at five factors in all 50 states plus the District of Columbia: spending on groceries, healthcare, fuel, housing, and utilities and other miscellanies personal consumption costs. From there they calculated “the annual retirement income needed to cover these living expenses, with an additional 20% to account for the ‘comfortable” aspect of retirement.”
With the lowest cost of living in the country, Mississippi, which requires $37,750 a year to live comfortably, ranked the least expensive state to retire. Next, Arkansas, Alabama, Oklahoma, South Carolina, and Kentucky rounded out the top six spots. Interestingly, the most expensive place to retire also happens to be located in the South: Washington, D.C. What can we say? We certainly run the gambit, don’t we.
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Fixing to retire soon? From lowest to highest, scroll down to see how much money you’ll need to retire comfortably in each Southern state, courtesy of GOBankingRates:
1. Mississippi: $37,750 a year
2. Arkansas: $38,896 a year
3. Alabama: $39,170 a year
4. Oklahoma: $41,223 a year
5. South Carolina: $41,583 a year
6. Kentucky: $41,610 a year
8. North Carolina: $42,224 a year
9. Louisiana: $42,726 a year
10. Tennessee: $42,774 a year
11. West Virginia: $43,023 a year
13. Georgia: $43,321 a year
19. Texas: $45,671 a year
22. Missouri: $46,908 a year
23. Florida: $48,305 a year
32. Virginia: $52,040 a year
41. Maryland: $55,935 a year
51. District of Columbia: $71,054 a year