10 States Where You Can Retire Comfortably for Less Than $50,000 a Year

Living on a fixed income in retirement can be challenging, but there are ways to maximize your retirement savings.

One pathway to a stress-free retirement might be living in an area with a lower cost of living, where your dollar can buy you a more affordable house or better cover everyday expenses such as groceries or utilities.

Check out these states where you can afford to live on less than $50,000 a year based on data from the Council for Community and Economic Research.

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

Median home price: $263,600

The median number of days that homes were on the market in January was 74, which was up by 10 year-over-year. That could be a good sign if you are trying to negotiate a good deal on a home.

Median home price: $385,800

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.

Median home price: $254,700

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

Home sales declined by an average of 4.3% compared to the previous year, which could also help you negotiate. 

Median home price: $235,600

Redfin reports that on average, home sales declined 7.8% year over year, with 1,975 homes sold this January compared to 2,148 in January of last year. The median time on market was 61 days, an increase of four days from a year ago. 

Median home price: $267,200

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.

Median home price: $250,700

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.

Median home price: $283,900

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 $219,000 in January.

Median home price: $280,700

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.

Median home price: $244,800

Oklahoma's modest housing costs make it ideal for a stress-free retirement.

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

Median home price: $239,100

Beginning in tax year 2026, West Virginia will no longer tax 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.

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 start planning for retirement by creating a budget based on your potential retirement income and expenses. That way, you will know how much you need to save now to live comfortably later.