Retirement Retirement Planning

The Minimum Savings You Need To Retire At 65 In These 10 Southern States

In these states, you can retire on a nest egg of less than $1 million.

By Chris Kissell

Edited by Esther Carlstone

Updated March 15, 2026

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Americans are moving to the South in big numbers. One study found that nearly 2 million Americans moved to the South between 2023 and 2024, the fastest growth rate for any region in the nation.

Wherever they are, people tend to live frugally in retirement. A 2025 study published in Financial Planning Review found that couples who are 65 withdraw just 2.1% from their retirement accounts every year. For singles, it's 1.9%.

If your retirement plan includes a move to the South, check out how much you will need in a nest egg to retire comfortably at 65 in the following Southern states.

Editor's note: Retirement income needs are based on CNBC research using typical withdrawal patterns. Home prices from Zillow, rental data from RentCafe, and senior care costs from CareScout.

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Florida

Minimum amount needed to retire here: $967,190

When Americans think of retirement locations, Florida often comes to mind first. The state has no income tax, which means you should be able to stretch income from retirement plans and Social Security. On the other hand, home insurance costs are among the highest in the nation.

The median home price in the Sunshine State is $370,112, which is slightly higher than the national median of $357,445. The median rent is $1,962, above the $1,741 national median.

The average monthly cost for assisted living in Florida is $5,610. For a nursing home, it costs $10,342 monthly for a semi-private room and $12,167 for a private room.

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Texas

Minimum amount needed to retire here: $833,575

In 2025, more people moved to Texas than any other state. Warmer weather and a booming economy have attracted many Americans to the Lone Star State.

Retirees also may succumb to the charms of Texas. The median home price is $294,807, considerably below the national average. Rent is also below the national average, at a median of $1,438.

The average monthly cost for assisted living in Texas is $5,666. Average monthly nursing home costs run $5,627 for a semi-private room and $7,604 for a private room.

The state has no income tax, but property taxes are among the highest in the U.S.

Georgia

Minimum amount needed to retire here: $848,933

For those who prefer busy city life, Georgia is home to Atlanta, the South's premier city. It's also a great base for retirees who are looking for a quieter life — it's easy to enjoy either mountain or coastal living in the Peach State.

The state's median home price is $325,999. The median rent in Georgia is $1,637. Both figures are below the national average.

The average monthly cost for assisted living in Georgia is $5,300. For a nursing home, it averages approximately $8,821 each month for a semi-private room and $9,429 for a private room.

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Tennessee

Minimum amount needed to retire here: $825,896

Nashville is one of the hottest cities for business in the U.S. If you are largely retired but would still like to work a little, Music City might be a good candidate for relocation to Tennessee.

The median home price in Tennessee is $324,926, and the median rent is $1,526. Both are a bit below the national average.

The average monthly cost for assisted living in Tennessee is $5,845. For a nursing home, it costs $9,429 per month for a semi-private room and $10,038 for a private room.

In addition, the Volunteer State has no state income tax, although taxes are levied on interest and dividends.

North Carolina

Minimum amount needed to retire here: $934,938

North Carolina's booming popularity is reflected in a recent rise in home and rental costs. Yet, this is still an affordable place to live compared to the national averages.

The median home price in the Tar Heel State is $328,611 and the median rent is $1,549. Both are a bit below the national average. Assisted living in North Carolina averages $6,496 monthly, while nursing home care runs $9,733 for semi-private rooms and $10,798 for private rooms.

Property taxes are reasonable and income taxes are among the lowest in the nation among states that actually have an income tax.

South Carolina

Minimum amount needed to retire here: $859,684

If North Carolina strikes you as a bit too expensive, just keep driving south and the cost of living will drop a bit.

In South Carolina, the median home price is $298,316, well below what you will pay in North Carolina, while the median rent in the Palmetto State is $1,611. The state's assisted living is notably more affordable at $5,350 per month. Nursing home costs are similar to neighboring states — $9,034–$9,612 monthly, depending on room type.

Property taxes are also among the lowest in the nation.

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Louisiana

Minimum amount needed to retire here: $862,756

If you are looking for an alternative to Texas that is still close by, Louisiana might be a good option.

Housing is super affordable in the Bayou State, with a median price of $206,946. Rent is also cheap, at just $1,248.

Louisiana offers the most competitive pricing for senior care: $5,163 for assisted living, $7,604 for semi-private nursing homes, and $8,076 for private rooms.

The income tax is a low 3% flat rate and retirees will be glad to learn their property taxes are also modest.

Mississippi

Minimum amount needed to retire here: $752,178

The amount of money you need to retire in Mississippi is lower than for any other state on this list. The low cost of housing contributes to its notable affordability.

In the Magnolia State, the median home price is a rock-bottom $186,295, and the median rent is $1,324.

Mississippi's average monthly cost for assisted living is $4,369, and $9,581 for a semi-private room in a nursing home, and $9,885 for a private room.

Alabama

Minimum amount needed to retire here: $789,037

Alabama is another state where you can find everything from big cities to mountain terrain and coastal havens. Retirees will find a little bit of everything here.

Alabama offers an affordable cost of living: median home prices at $228,634, median rent at $1,315, and the second-lowest property taxes in the nation.

The average monthly cost for assisted living in Alabama is $4,425. For a nursing home, it costs $8,334 for a semi-private room and $8,787 for a private room.

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Arkansas

Minimum amount needed to retire here: $810,538

Arkansas may be small, but it's an affordable gem retirees shouldn't overlook. The Natural State boasts a median home price of $215,426 — one of the lowest on this list — with median rent at just $1,128 and among the nation's lowest property taxes.

Arkansas offers the region's most budget-friendly senior care at $4,637 monthly for assisted living, with nursing homes starting at $7,452 for a semi-private room or $8,060 for a private room.

Bottom line

Retirees flock to the South for the region's warm weather and affordable cost of living. Many Southern states also offer low — or even nonexistent — taxes, stretching retirement savings further. If you're looking to set yourself up for retirement, relocating to the Southern U.S. can be a smart financial move.

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