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

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.

Arkansas

Median home price: $273,996

The median number of days that homes were on the market in April was 56, which was up by four year-over-year. That could be a good sign if you are trying to negotiate a good deal on a home.

Tennessee

Median home price: $374,465

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: $271,106

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

Homes spent a median of 36 days on the market in April, three days longer than the same time last year, which could work in your favor when negotiating.

Iowa

Median home price: $244,194

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: $284,063

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: $269,112

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.

Alabama

Median home price: $299,014

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 $227,882 in April.

Kansas

Median home price: $284,063

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: $257,152

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.

West Virginia

Median home price: $259,145

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.