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 as of September 2025.

Median home price: $267,600

Only 12.7% of homes in Arkansas sold above their list price in September. That could be a good sign if you are trying to negotiate a good deal on a home.

Median home price: $392,100

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: $276,100

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

The state's median sale price in September was $276,100. 

Median home price: $247,500

A report by Seniorly concluded that Iowa was an ideal state for retirement due to low housing costs for both renters and homeowners.

The study found that almost 80% of older adults in Iowa own their homes.

Median home price: $280,000

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: $263,400

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: $293,600

Alabama doesn't tax Social Security or income from public and private pensions, which helps you keep more cash in your wallet from your benefits. However, withdrawals from retirement accounts are taxed.

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 $225,000 in September.

Median home price: $292,500

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: $253,000

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: $239,700

West Virginia partially taxes Social Security, withdrawals from retirement accounts, and income from a public or private pension. However, the state's overall low cost of living makes it a winner 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.