Retirement Retired Life

10 States Where a Comfortable Retirement Costs Less Than $50,000 a Year

Affordability can be an important factor when deciding where to retire.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated Oct. 22, 2026

Add Us On Google

Stretching a fixed income in retirement is no small feat, but where you choose to live could make all the difference. The right location might help you stretch your retirement dollars further simply by lowering the price tag on everyday life.

In some states, $50,000 a year goes a lot further than you'd expect, covering housing, groceries, utilities, and still leaving room to breathe. Based on data from the Council for Community and Economic Research, here are the states where retirees could live comfortably on less than $50,000 annually.

Editor's note: All home price data for each state comes from Redfin.

Now Available: The Definitive Guide to Retirement Income

Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years.

That is exactly what The Definitive Guide to Retirement Income helps answer.¹ <p class="">Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. Guides are provided by Fisher Investments. The publisher may be compensated when readers request a guide.</p> It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here ›

Arkansas

Median home price: $276,206

The median number of days that homes were on the market in September was 61, which is seven days longer than a year prior. That could be a good sign if you are trying to negotiate a good deal on a home.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

Tennessee

Median home price: $373,833

Tennessee has a wide variety of options for retirement living. City lovers can choose Nashville and its robust music scene. Or, settle down in Memphis, which is home to Elvis Presley's Graceland.

If you love the outdoors, check out more mountainous areas in places such as Chattanooga, which offers hiking trails in the mountains and the city's Riverwalk.

Indiana

Median home price: $277,602

Indiana's low housing costs should be attractive to those on tight budgets.

Homes spent a median of 37 days on the market in September, two days longer than the same time last year, which could work in your favor when negotiating.

Released: The Definitive Guide to Retirement Income (Sponsor)

Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan.

That is exactly what The Definitive Guide to Retirement Income helps answer.¹ <p class="">Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. Guides are provided by Fisher Investments. The publisher may be compensated when readers request a guide.</p> It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn More Here ›

Iowa

Median home price: $249,284

Iowa's lower cost of living means your housing dollar stretches further here. With median home prices well below $300,000, buying in the Hawkeye State could leave more money in your pocket for other retirement expenses, whether that's health care, travel, or simply padding your savings.

Missouri

Median home price: $286,178

Missouri has lower transportation costs compared to many other parts of the country.

Gas prices are typically lower than in many other parts of the country, including the neighboring state of Illinois.

Mississippi

Median home price: $268,728

Mississippi is a tax-friendly state for retirees. The state doesn't tax Social Security, withdrawals from retirement accounts, or income from a private or public pension.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

Alabama

Median home price: $299,440

Alabama doesn't tax Social Security or income from public and private pensions, which helps you keep more cash in your wallet. However, withdrawals from retirement accounts are taxed. Retirees continue to receive a tax benefit, as the first $6,000 of retirement income for individuals age 65 and older is exempt from taxes.

You can also find affordable housing on the water if you want to retire on the Gulf Coast. The median sale price for a home in Mobile, for example, was $229,400 in August.

Kansas

Median home price: $310,000

The Council for Community and Economic Research found that Kansas had one of the lowest index scores for the cost of groceries, making it an attractive option compared to other states.

Oklahoma

Median home price: $257,261

Oklahoma's modest housing costs make it ideal if you want to maximize your senior benefits.

In addition, Oklahoma doesn't tax Social Security, although withdrawals from retirement accounts and pensions are partially taxed.

Get instant access to hundreds of discounts

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.

Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.

Become an AARP member now

West Virginia

Median home price: $259,255

Beginning in tax year 2026, West Virginia no longer taxes Social Security benefits. However, retirees may still owe taxes on withdrawals from retirement accounts and on income from public or private pensions. Even so, the state's relatively low cost of living continues to make it an attractive option for retirees.

Bottom line

Retirement can be daunting, especially if you are worried about how to afford life on a fixed income.

So, it's a good idea to approach your retirement plan by creating a budget based on your potential retirement income and expenses. That way, you are able to know how much you need to save now to live comfortably later.

More from FinanceBuzz: