15 U.S. states where you can retire comfortably on less than $65,000 a year

While building up your retirement savings is important, how much money you’ll actually need depends on where you are. That’s because the annual cost of living can vary by over $71,000 between U.S. states, according to a recent GOBankingRates analysis.

Hawaii has the highest average retirement expenses, with an estimated $129,296 a year needed to retire comfortably. That’s more than twice that of West Virginia, where retirees need $58,190 on average.

To calculate the annual retirement costs for Americans aged 65 and older in each state, the study used Bureau of Labor Statistics estimates for food, shelter, transportation, health care, and utility expenses. A 20% cash buffer was added to this total to ensure retirees could live “comfortably,” according to the study.

The large disparity in the cost of living is largely due to high housing costs. In states where housing is in short supply — like Hawaii, California, Massachusetts — the annual cost of retirement exceeds six figures.

The median annual cost of retiring comfortably is $66,870, based on the data. That said, there are 20 states where you can still retire on or under $65,000. They tend to be more rural states in the South, where the cost of living is cheaper lower.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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