Retirement Made Easy: The Most Affordable States for Your Golden Years

The question of where to live best in retirement occupies many Americans. For the majority of retirees, financial planning plays a crucial role. According to a CNBC survey, only 16 percent of retirees have savings and investment assets of more than one million US dollars. Another study by Guardian Life shows that the average household wealth of 65- to 74-year-olds is around 200,000 US dollars. Therefore, it is essential to make smart decisions about where to settle down. However, those with wealth exceeding a million and minimal debt naturally include expensive retirement goals on their agenda. The good news: In most states in the USA, it is possible to achieve a comfortable standard of living in retirement with less than 100,000 US dollars annually. This is the result of an analysis by GOBankingRates, which examined the annual expenses for housing, food, utilities, healthcare, and transportation in all 50 states. To cover the "comfortable" element of retirement, an additional buffer of 20 percent was calculated for these expenses. Only in three of the 50 analyzed states is an annual income of at least 100,000 US dollars required to ensure the desired comfort in retirement. But there is good news for budget-conscious retirees: In seven states, one needs less than 62,000 US dollars annually for a comfortable retirement. Thus, if considering the most cost-effective retirement, a look at West Virginia or Oklahoma is worthwhile. According to the GBR study, these two states are the only ones where one can comfortably manage with an annual budget of under 60,000 US dollars.