Comfortable Retirement on a Budget: 15 U.S. States where you can live on less than $65,000 a year

The amount of money needed for retirement varies depending on the location, as the annual cost of living can differ by over $71,000 among U.S. states, according to a recent GOBankingRates analysis.

On average, retirees in Hawaii require $129,296 per year to live comfortably, which is significantly higher than the $58,190 needed in West Virginia.

The study determined annual retirement costs for Americans aged 65 and older in each state by adding a 20% cash buffer to Bureau of Labor Statistics estimates for food, shelter, transportation, health care, and utility expenses to ensure retirees can live comfortably.

The high cost of housing is a significant factor in the large disparity in the cost of living, particularly in states where housing is scarce, such as Hawaii, California, and Massachusetts, where the annual cost of retirement often exceeds six figures.

While the median annual cost of retiring comfortably is $66,870, there are 20 states where you can still retire on or under $65,000. These states tend to be more rural and located in the South, where the cost of living is lower.

Here is a list of states where annual retirement expenses are $65,000 or less, arranged in alphabetical order.

Alabama

Total expenditures: $50,980
20% comfort buffer: $10,196
Cost of a comfortable retirement annually: $61,176

Arkansas

Total expenditures: $51,211
20% comfort buffer: $10,242
Cost of a comfortable retirement annually: $61,454

Georgia

Total expenditures: $52,832
20% comfort buffer: $10,566
Cost of a comfortable retirement annually: $63,398

Illinois

Total expenditures: $53,989
20% comfort buffer: $10,798
Cost of a comfortable retirement annually: $64,787

Indiana

Total expenditures: $52,253
20% comfort buffer: $10,451
Cost of a comfortable retirement annually: $62,704

Iowa

Total expenditures: $52,137
20% comfort buffer: $10,427
Cost of a comfortable retirement annually: $62,565

Kansas

Total expenditures: $50,517
20% comfort buffer: $10,103
Cost of a comfortable retirement annually: $60,620

Kentucky

Total expenditures: $53,584
20% comfort buffer: $10,717
Cost of a comfortable retirement annually: $64,301

Louisiana

Total expenditures: $53,295
20% comfort buffer: $10,659
Cost of a comfortable retirement annually: $63,954

Michigan

Total expenditures: $53,121
20% comfort buffer: $10,624
Cost of a comfortable retirement annually: $63,745

Mississippi

Total expenditures: $51,096
20% comfort buffer: $10,219
Cost of a comfortable retirement annually: $61,315

Missouri

Total expenditures: $51,211
20% comfort buffer: $10,242
Cost of a comfortable retirement annually: $61,454

Nebraska

Total expenditures: $54,047
20% comfort buffer: $10,809
Cost of a comfortable retirement annually: $64,856

New Mexico

Total expenditures: $54,163
20% comfort buffer: $10,833
Cost of a comfortable retirement annually: $64,995

North Dakota

Total expenditures: $53,700
20% comfort buffer: $10,740
Cost of a comfortable retirement annually: $64,440

Oklahoma

Total expenditures: $49,996
20% comfort buffer: $9,999
Cost of a comfortable retirement annually: $59,995

South Dakota

Total expenditures: $54,047
20% comfort buffer: $10,809
Cost of a comfortable retirement annually: $64,856

Tennessee

Total expenditures: $52,253
20% comfort buffer: $10,451
Cost of a comfortable retirement annually: $62,704

Texas

Total expenditures: $53,468
20% comfort buffer: $10,694
Cost of a comfortable retirement annually: $64,162

West Virginia

Total expenditures: $48,492
20% comfort buffer: $9,698
Cost of a comfortable retirement annually: $58,190

Earn more money at work by taking CNBC's new online course on negotiating a higher salary. Expert instructors will teach you the necessary skills to increase your paycheck, including how to prepare, build confidence, communicate effectively, and craft a counteroffer. Pre-register now and use coupon code EARLYBIRD for a 50% discount through Nov. 26, 2024.