3 States Where Retirees Can Live On Less Than $45K Per Year

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retired living on less than $45K per year

Saving up money for retirement isn’t easy these days.

People especially get worried when crunching the numbers, are contemplating retirement at an earlier age, and even cut expenses now to make retired life easier down the road.

One way to make your money go further after retirement is to live in a less expensive state. If your current location isn’t the place to spend your last decade on Earth, it might be time to do some advanced scouting for states to eventually call home.

GOBankingRates evaluated all 50 states and determined where retirees can live out the golden years for less than $45,000 annually. Here’s more about how they crunched the numbers:

The study analyzed factors like groceries, housing, utilities, transportation, healthcare and the overall cost-of-living index in each state, all of which contribute heavily to your yearly expenses in retirement. These indices were then multiplied by the average annual expenditures of Americans aged 65 and older, which provided the final ranking of the top eight states.

The figures quoted in this article are per household. The most recent Census lists the average number of people per household as 2.5.

Before unveiling the top three states for retirees living on less than $45K per year, here are some states that came close to cracking the top of the list and the amount a person would need to live comfortably in retirement.

  • New Mexico: $44,997
  • Alabama: $44,897
  • Georgia: $44,897
  • Missouri: $44,646
  • Kansas: $44,143

And now the top three states for living on less than $45K per year in retirement.


Arkansas has the third least expensive healthcare and transportation costs, which can help make your retirement savings last longer.

Annual expenditures: $44,093


Oklahoma’s transportation costs are the sixth-lowest in the country.

Annual expenditures: $43,591

And the cheapest state for retirees to live on less than $45K per year…


“Early retirement might be possible in Mississippi, the state where retirees spend the least each year. Housing, in particular, is a steal at $6,510, which is a staggering 33.3% below the national average and less than any state in the ranking.”

Annual expenditures: $42,587

To read the entire report, head over to read more about the states where retirement will cost less than $45,000 a year.

Chris Illuminati

Chris Illuminati is the author of five books and has written about personal finance, wealth, debt management, and entrepreneurship for numerous outlets including Wise Bread, Grow or Die, and Bankrate.