In 2024, the top 10 most affordable states for retirement in the U.S. will be mostly located in the South.

If you prefer hiking the Appalachian Mountains over lounging on coastal beaches, this year's least-expensive state to retire may be a good fit for you.

For the second year in a row, West Virginia has been ranked as the most affordable state for retirement in the U.S., according to Bankrate's recent report on the best and worst states for retirement.

According to the report, West Virginia's affordability ranking is due to its low cost of living, low property taxes, and affordable homeowners insurance. Mississippi and Indiana come in second and third, respectively.

According to Bankrate, the 10 most affordable states in the U.S. for retirement are:

The Tax Foundation and the Council for Community and Economic Research were among the sources from which the report's data was obtained.

Pros and cons of retiring in the No. 1 most affordable state

West Virginia's cost of living is 9% lower than the national average, with housing costs being 20% lower and an effective property tax rate of 0.49%, according to RentCafe and Bankrate.

By 2026, the state will eliminate state-level taxes on income from Social Security benefits, as per a law signed in March. However, withdrawals from retirement accounts such as 401(k)s, IRAs, or government pensions will still be taxable. Nevertheless, individuals aged 65 and above can claim deductions of up to $8,000 per person.

While West Virginia ranks average in Bankrate's wellness scores, it is last in quality and cost of health care. MoneyGeek found that residents face the second-highest average private health insurance premiums in the country.

Factors retirees should consider beyond affordability

While affordability is an important factor to consider when choosing a retirement destination, it shouldn't be the only one.

Consider other factors when choosing a retirement location, such as entertainment, community activities, and accessibility to healthcare services.

Kerry Hannon, a retirement expert and author of "In Control at 50+: How to Succeed in the New World of Work," advised Bankrate that while living in a beautiful location may be appealing, it could also be remote and far from the nearest hospital, which could be a concern.

"Consider the need for helicopter or transportation to reach a medical center when making decisions," she advised.

Determining your retirement savings goal is crucial before deciding where to spend your post-work years, as it will help you assess how far your money will go in various locations.

CNBC's retirement calculator can assist you in estimating the amount you'll need to retire comfortably based on factors such as your age, current savings, income, and desired retirement age.

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