Experts reveal top 12 cheapest states to retire in America

A large number of baby boomers have zero retirement savings and 40% intend to depend solely on Social Security for their post-retirement income. This does not look good for people worried about retirement, but there’s a way to help save – even if it means retiring in a completely different city.

advertisement

Here are 12 of the cheapest states to retire in.

  1. Mississippi

Average cost of living index: 85.1

Median home cost: $140,818

Will you vote for Trump in 2024?*
This poll gives you free access to our premium politics newsletter. Unsubscribe at any time.
This field is for validation purposes and should be left unchanged.

Medicare Advantage Monthly Cost $48.87

In Mississippi, any income from pensions, Social Security, 401(k)s, IRAs, 403(b)s, SEP-IRA’s, and 457(b)s are tax-exempt.

  1. Alabama

Average cost of living index: 88.6

Median home cost: $170,184

Medicare Advantage Monthly Cost: $64.27

Alabama is among 38 states to fully exempt Social Security from income tax. Additionally, pension income is not taxed.

  1. Oklahoma

Average cost of living index: 88.2

Median home cost: $150,754

Medicare Advantage Monthly Cost: $47.49

The state of Oklahoma fully exempts Social Security retirement benefits. A deduction of $10,000 is also allowed for other retirement income.

  1. Arkansas

Average cost of living index: 92.1

Median home cost: $149,120

Medicare Advantage Monthly Cost: $44.34

In general, U.S. retirees consider Arkansas to be a favorable tax state. The state does not tax Social Security benefits. For seniors with other retirement income, such as pensions or IRAs, Arkansas also offers a $6,000 deduction (available for those who reached age 59 ½).

  1. Georgia

Average cost of living index: 89.8

Median home cost: $245,778

Medicare Advantage Monthly Cost $48.91

Seniors +65 can deduct $65,000 per person from all retirement income and no Social Security tax in Georgia. This deduction decreases to $35,000 for those between the ages of 62 and 64.

  1. Tennessee

Average cost of living index: 90.0

Median home cost: $231,682

Medicare Advantage Monthly Cost: $58.17

Tennessee has the second lowest per capita and per local tax burden behind Alaska, and is 10.3% below the cost of living index.

  1. West Virginia

Average cost of living index: 90.1

Median home cost: $117,768

Medicare Advantage Monthly Cost: $59.74

The state is tax-advantaged, although the level of tax-friendliness will depend on your income. West Virginia, for example, has low property and sales taxes.

 

  1. Indiana

Average cost of living index: 91.1

Median home cost: $185,805

Medicare Advantage Monthly Cost: $43.65

There is no tax on Social Security income in Indiana. Furthermore, Indiana’s property taxes are fairly low.

 

  1. Kansas

Average cost of living index: 86.9

Median home cost: $176,898

Medicare Advantage Monthly Cost: $38.56

In Kansas, the tax climate for retirees is moderate.

 

  1. Iowa

Average cost of living index: 90.3

Median home cost: $165,955

Medicare Advantage Monthly Cost: $49.07

Iowa is fairly tax-friendly. For example, it does not charge state income taxes on Social Security benefits.

 

  1. South Carolina

Average cost of living index: 94.8

Median home cost: $225,406

Medicare Advantage Monthly Cost: $38.38

A state with low property taxes and no estate or inheritance tax.

 

  1. New Mexico

Average cost of living index: 90,6

Median home cost: $248,670

Medicare Advantage Monthly Cost: $39.61

GoBanking Rates estimates that health care costs and grocery prices are somewhat below the U.S. average in New Mexico, but housing and utilities are more affordable.

sponsors
*** My Pillow Promo Codes ***
Go To MyPillow.com (tap here) and type in promo code ILMF9 for big discounts.


Similar Posts