The Social Security money you receive in your retirement can sometimes seem juicy and enough, but it can buy different things depending on the state where you live. And we all know that some places in the United States are really expensive to live in. You can’t buy the same in Los Angeles as in Nebraska, or in Miami as in Seattle.
That’s why having a list of the places with the most affordable living costs is always a good idea, especially if you live only with your retirement money. We tell you which are the ten states where cash buys more for retired people. Are you expecting, for example, Florida? Well, you’ll be surprised with the ones who made it to this shortlist.
The best budget-friendly states for retirees to live better
Let’s go back and forth on the list, mentioning first the tenth place that sneaked into this list: that state is Arkansas, which offers high affordability and tax ease for retirees. The cost of living there is below the national average, and there are exemptions for pensions and retirement accounts. However, income from pensions and retirement savings accounts could be taxed. Property taxes are some of the lowest in the United States as well, which is something else to consider.
The state that came in at number 9 on the list is Wyoming. It is considered one of the most affordable states for retirees due to several factors such as tax facilities. There are no income taxes, which means retirees pay no taxes on their Social Security income or on their additional income. The median property prices in different Wyoming cities are notably budget-friendly when compared to national averages. For instance, Cheyenne boasts a median home value of $282,931, Casper follows suit with $209,117, and Cody stands at a median value of $308,093.
Kansas is ranked No. 8 on the list, as it provides an affordable cost of living, amazing cuisine, reasonably priced housing options, and a plethora of activities tailored for seniors’ enjoyment. Kansas has a cost of living index of 87.9, positioning it among the states with the most affordable living expenses nationwide. This signifies that the day-to-day costs within the state are nearly 12% beneath the national average, enabling a typical household to comfortably manage on an annual income of $48,000.
The seventh in the list is Indiana, since it could be an attractive place for retirees to live their golden years. The cost of living in Indiana is 18% less than the national average, with housing costs being 40% below the median. The cost of renting a house for a retired individual is relatively affordable, averaging around $700, compared to the national average of $1,100.
Regarding Oklahoma, the number 6 on the list, retirees could have a nice cost of living and the state also include no taxation on Social Security income, no state estate tax, and low property taxes. The state’s strong economy is also an aspect to consider, which translates into better services and public infrastructure.
Now, how did Missouri make it the number 5 of the list? Well, you’ll be surprised. The state’s cost of living is 16.3% lower than the national average. For example, U.S. News and World Report listed St. Louis as one of the “Best Places to Retire Under $400,000” and Springfield, Missouri was remarked as one of the “10 places to buy a Retirement Home for Under $100,000”.
The Top 5 Best US States for Retirees to Live In 2023
The number 4 on the list is the state of Alabama, which boasts a lower cost of living compared to many other states in the U.S. Housing costs, in particular, are notably affordable. Retirees can find reasonably priced homes, apartments, and condominiums, which can significantly reduce their overall expenses. The Yellowhammer State is tax-friendly for retirees. Social Security benefits are not subject to state income tax, and there are substantial deductions for retirement income. Additionally, property taxes are relatively low, and there is no inheritance tax. The climate is something to consider: it’s moderate which means retirees can avoid the high heating costs associated with colder northern states. This can lead to substantial savings on utility bills.
The number 3 is Iowa, where they’re really nice with retirees. Social Security benefits are not taxed, and there are certain exemptions for retirement income, such as pensions and 401(k) withdrawals. Iowa has a good healthcare system with access to quality medical facilities. While healthcare costs are rising nationwide, they tend to be lower in Iowa compared to states with higher living costs.
The state of Mississippi, which is the number 2 of the list, offers several compelling reasons why it can be an appealing place for retirees to consider for their next chapter in life. Social Security benefits are not subject to state income tax, and there are generous exemptions for other forms of retirement income. Property taxes are also relatively low, offering potential savings for homeowners.
The Best State to Live for Retirees in the United States
Now, the number 1 on the list is not Florida. I’m sorry to break your heart, but wait: this is actually a nice place where you could live in the final stage of your rich and long life: we’re talking about West Virginia. In this state, the cost of living is under the national average.
Retirees can enjoy a comfortable lifestyle without breaking the bank, and relying on their Social Security benefits. Housing, healthcare, and everyday expenses are more budget-friendly compared to many other states. The state is renowned for its stunning natural landscapes, including the Appalachian Mountains, rolling hills, and lush forests. If you enjoy outdoor activities like hiking, fishing, or simply taking in scenic vistas, West Virginia provides an abundance of opportunities to connect with nature.