What Are The Cheapest States to Retire In

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Cheapest States to Retire In

When considering retirement, affordability is a crucial factor. The cost of living, healthcare expenses, taxes, and housing costs are significant considerations. Here are some of the best states to retire in on a fixed income, based on these criteria:

  1. Mississippi
    • Cost of Living: Lowest in the U.S.
    • Housing: Affordable housing market.
    • Taxes: Tax-friendly for retirees.
  2. Alabama
    • Cost of Living: Significantly lower than the national average.
    • Housing: Low property taxes and affordable housing.
    • Taxes: Social Security income is not taxed.
  3. Arkansas
    • Cost of Living: Among the lowest in the nation.
    • Housing: Very affordable housing costs.
    • Taxes: Retiree-friendly tax system.
  4. Oklahoma
    • Cost of Living: Lower healthcare and housing costs.
    • Housing: Affordable real estate market.
    • Taxes: Tax benefits for retirees.
  5. West Virginia
    • Cost of Living: Low overall living costs.
    • Housing: Very affordable housing options.
    • Taxes: Social Security income is partially taxed.
  6. Tennessee
    • Cost of Living: Low healthcare costs.
    • Housing: Affordable housing market.
    • Taxes: No state income tax.
  7. South Carolina
    • Cost of Living: Below national average.
    • Housing: Reasonable housing prices.
    • Taxes: Tax-friendly for retirees.
  8. Kentucky
    • Cost of Living: Low cost of living and healthcare costs.
    • Housing: Affordable housing market.
    • Taxes: Retiree-friendly tax policies.
  9. Louisiana
  10. Georgia
Cheapest State To Retire


These states offer various benefits for retirees, including lower costs of living, affordable housing, and favorable tax conditions. Choosing the right state for retirement depends on individual preferences and financial circumstances.

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Frequently Asked Questions

What States do not tax retirement income?

Retirement income is not taxed in Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Meanwhile, in New Hampshire and Tennessee, only interest and dividend income from retirement accounts like 401ks, or IRAs are subject to taxation.

What is the least expensive state to live on Social Security?

The answer to this question depends on various factors, including the size of the state population, cost of living, and other expenses. Generally, states with larger populations tend to be more expensive than smaller ones as they offer more amenities and services.

What state do most retirees move to?

The answer to this question depends on various factors, including the individual’s preferences and financial situation. Some of the most popular states for retirees include Florida, Arizona, Texas, and South Carolina. These states offer attractive climates, low taxes, good healthcare options, and plenty of recreational activities.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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