Best states to retire if you want your money to last

Many retirees suffer from financial instability. In fact, nearly half (45%) of households headed by those 60 or older do not have enough income to cover basic living expenses, and 80% cannot afford a serious financial emergency “without falling into poverty,” according to a report by the LeadingAge LTSS Center at the University of Massachusetts Boston and the National Council on Aging.

This is perhaps not surprising, given that the median household income for Americans ages 65 and older was $56,680 as of 2024. If you’re worried about financing your retirement, a change of scenery may be helpful.

Enjoy a low cost of living as well as valuable perks in these states

Use of collected data for InvestopediaIn our list of the 50 Best Cities to Retire in the US, we’ve identified the top 10 states with the lowest monthly costs of living county-wise. The monthly cost is a combination of housing, transportation, and food costs.

1. Mississippi

The Magnolia State tops our list, because living in Adams County, on the southwest border, typically pays residents a very low $2,350 per month. This figure includes $592 for average housing costs, $1,181 for monthly transportation costs, and $577 for monthly food costs.

Sure, Mississippi retirees only take home, on average, about $23,347 a year, but the state’s tax code is notoriously senior-friendly, waiving taxes on retirement income, including pensions and Social Security, and offering property tax breaks to homeowners 65 and older.

Adams County hugs the Mississippi River. St. Catherine’s Creek National Wildlife Refuge is also located in the county.

2. New Mexico

Two New Mexico counties — San Miguel and Guadalupe — have significantly lower monthly costs of living: $2,359 and $2,389, respectively.

Guadalupe County is home to Santa Rosa, which offers diving in the crystal clear waters of the Blue Hole, as well as horseback riding, hiking and golf. It also has one of the lowest median monthly housing costs in the country at $510 per month, which helps retirees boost their average annual income of $29,707.

Colloquially known for its more than 300 days of sunshine annually, the scenic state of New Mexico offers plenty of attractions, such as White Sands National Park, Carlsbad Caverns, and the Albuquerque International Balloon Festival.

3. Arizona

La Paz County residents can expect to pay about $2,418 per month for housing, transportation, and food expenses, with average housing costs falling to $539 per month.

The state ranks 18th in median annual retirement income, with seniors earning about $28,725 annually.

You may need to spend the peak days of summer indoors when temperatures reach 112 degrees Fahrenheit, but there’s plenty to do on cooler days, as the state is home to one of the world’s great wonders, the Grand Canyon.

4. Virginia

Located near the North Carolina border, Danville County, Virginia offers a low cost of living of $2,420 per month and the lowest monthly transportation costs of any state on this list ($1,058).

The Old Dominion, also known as the “Mother of States,” combines scenic byways, like Skyline Drive, coastal towns, like Virginia Beach, and historic landmarks, like Colonial Williamsburg.

5. Georgia

Ware County in southeast Georgia is known for its busy retail center and low cost of living, with residents typically paying $2,469 a month for housing, food and transportation.

Lower monthly food costs ($564) can help you boost your average annual retirement income of $27,961.

If shopping isn’t in your budget, you can enjoy scenic, low-cost day trips to Savannah’s Historic District, Callaway Gardens, and the Georgia Aquarium.

6. Texas

Maverick County, located along the Rio Grande River, ranks as the most affordable county in the state at $2,482 per month with significantly lower monthly food costs ($470).

Texas retirees earn, on average, $27,471 in retirement income, which is in the middle of the pack among states. But you can stretch those dollars by taking advantage of key tax breaks, like no state income tax and property tax deferral for seniors ages 65 and older.

Many Texas cities also offer fun and entertainment programs for seniors that include organized day trips and discounts on gym memberships, swimming pools, and social clubs.

7. Missouri

Missouri makes our list thanks to Butler County, where residents typically pay about $2,495 a month for food, housing, and transportation.

Missouri retirees, on average, have a lower retirement income than most other states at just $24,125 per year. Fortunately, Social Security is exempt from state income tax and some seniors can also qualify for an estate tax credit.

What’s more, the Show Me State offers plenty of low-cost, senior-friendly recreational activities, including trips to the Missouri Botanical Garden in St. Louis, the Sophia M. Sachs Butterfly House, and Katy Traill State Park.

8. Oklahoma

Choctaw County, Oklahoma, typically costs residents $608 for housing, $1,291 for transportation, and $600 for food per month, for a total of $2,499.

The Sooner State’s median annual retirement income is minimal ($23,963) compared to other states, so you’ll need to stretch those dollars by taking advantage of the scenic, low-cost attractions of the prairie lands, like Three Forks Harbor.

9. West Virginia

Ohio County, West Virginia, costs residents just $2,515 a month, which breaks down to $742 for housing, $1,161 for transportation, and $612 for food.

The only big drawback is that West Virginia ranks dead last in annual retirement income, with seniors earning an average of $21,118 per year.

Take advantage of the state’s active senior centers, scenic state parks, and the six-mile-long Caperton Rail Trail, paved for walkers and cyclists.

10. Pennsylvania

Pennsylvania completes the list, thanks to Cambria County. Home to the small city of Johnstown, county residents typically pay $2,523 a month for housing, food and transportation.

Seniors receive, on average, $24,392 a year in retirement income. Additionally, they can take advantage of an expanded property tax deduction.

The Keystone State offers a variety of recreational activities, with scenic state parks and historic sites, from the Johnstown Flood Museum to Philadelphia.