Nearly 73 million Americans are expected to reach retirement age by 2030, yet most have far less saved than they’d like. A new analysis from Neil Jesani Tax Advisors compared the cost of living, rent, healthcare, and quality of life across the U.S. to identify where retirees can live most comfortably with the smallest nest egg. Using the 4% withdrawal rule, which assumes you can withdraw 4% of your savings each year without running out, the study ranked every state by how much money you’d need to retire securely.
15. Michigan
Michigan rounds out the list with an annual cost of living with rent of $40,767, which translates to a retirement savings target of about $1,019,172. Average rent runs around $1,400 for a one-bedroom, while healthcare adds roughly $9,897 per year. Those figures push Michigan just above the million-dollar threshold for comfortable retirement savings.
Despite the higher costs, Michigan’s quality of life score of 51.2 makes it appealing for retirees who want access to freshwater lakes, changing seasons, and cultural amenities. For those who’ve built a nest egg around $1 million, Michigan offers variety and lifestyle without the steep costs of coastal states.
14. Utah
Utah’s annual living costs total $40,403, meaning retirees would need around $1,010,071 in savings to live comfortably. The state’s average rent of $1,611 and monthly living expenses of $1,129 contribute to that figure. While slightly pricier than some others on this list, Utah remains relatively affordable compared to major coastal metros.
Healthcare is a bright spot at just $7,522 annually, one of the lowest in the group, and its quality of life score of 59.6 is among the best. For retirees looking for scenic landscapes, national parks, and good healthcare access, Utah is worth the higher upfront savings goal.
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13. Idaho
Idaho’s annual cost of living with rent is $39,746, requiring about $993,654 in total savings. Rent averages $1,579, a sign of how quickly demand has grown in places like Boise and Coeur d’Alene. Monthly living costs remain moderate at $1,054, while healthcare expenses are relatively low at $8,148.
The state’s quality of life index of 58.8 is excellent, reflecting its clean environment, safety, and access to outdoor recreation. Idaho is best suited for retirees who have close to $1 million saved and want natural beauty and low crime without the chaos of big-city living.
12. Kentucky
Kentucky retirees face an annual living cost of $37,888, so they’ll need around $947,200 in savings to cover it using the 4% rule. Rent averages $1,220 per month, while everyday expenses stay reasonable at about $1,083. Combined, those make Kentucky one of the more affordable states east of the Mississippi.
The quality of life score sits at 49, right around the national midpoint. Kentucky appeals to retirees who prefer slower living, access to major cities like Louisville and Cincinnati, and reasonable costs that don’t require an oversized retirement fund.
11. Wyoming
Wyoming’s annual cost of living with rent hits $37,830, leading to a savings need of roughly $945,756. Rent is moderate at $1,114 per month, and annual healthcare costs reach $10,989, a bit higher than in many nearby states.
Its quality of life score of 58, however, offsets some of the expense. With open landscapes, low population density, and abundant outdoor activities, Wyoming attracts retirees who prioritize peace and space. A nest egg just under $950,000 can stretch surprisingly far here.
10. Arkansas
Arkansas’ annual cost of $37,639 means retirees would need about $940,975 in total savings. Rent averages $1,276 for a one-bedroom, while healthcare costs reach around $9,338. Everyday living expenses are modest, making the state a solid budget choice overall.
Although its quality of life score of 43.3 is the lowest in the top 15, retirees who choose the right city, such as Fayetteville or Hot Springs, can still enjoy comfort and affordability. For those retiring on roughly $900,000, Arkansas remains one of the South’s best values.
9. Alabama
Alabama retirees spend about $37,628 per year, translating to a savings target of $940,699. Monthly costs hover around $1,162 for general living expenses and $1,200 for rent. Healthcare runs just $9,280 annually, keeping total costs reasonable.
The state’s quality of life score of 48.5 and mild climate make it a good fit for retirees who value sunshine and affordability. Those aiming to retire on under $1 million can find comfort and community here without sacrificing too much convenience.
8. South Dakota
South Dakota’s annual cost with rent totals $37,328, meaning retirees need about $933,201 in savings. Healthcare runs high at $12,495, but housing remains affordable with rent around $974 per month. Combined, these balance out to keep the state within reach for many retirees.
Its strong quality of life score of 54.9 reflects clean air, safety, and community engagement. Retirees seeking quiet living and low taxes can enjoy financial stability without reaching the million-dollar mark in savings.
7. West Virginia
West Virginia’s annual living costs reach $35,612, requiring roughly $890,308 in savings to retire comfortably. Rent is one of the lowest on the list at $914, and everyday costs are below $1,000 per month, keeping budgets in check.
Healthcare costs run higher at $12,769 per year, and the quality of life score of 48.1 reflects limited access in some rural areas. Still, retirees drawn to mountain scenery and slower living will find West Virginia among the cheapest Appalachian states to settle in.
6. North Dakota
North Dakota’s total annual cost of $35,566 puts its required savings around $889,158. Healthcare expenses are the highest in the top 10 at $11,301 annually, but low rent of $935 keeps overall costs balanced.
With a solid quality of life score of 55, the state appeals to retirees who prioritize community safety and clean environments over warm weather. Even with cold winters, North Dakota offers affordability and stability for those with smaller savings.
5. Oklahoma
Oklahoma retirees spend roughly $35,318 per year, requiring about $882,960 in savings. Rent sits at just over $1,000 a month, while healthcare costs average $9,444 per year. That balance of low housing and average medical costs makes Oklahoma attractive to retirees on tighter budgets.
Its quality of life score of 45.2 is modest, but the overall affordability is hard to beat. Those who want to live comfortably on less than $900,000 in savings will find Oklahoma’s small towns and mid-sized cities especially budget-friendly.
4. New Mexico
New Mexico’s annual living costs, including rent, total $35,312, so retirees would need around $878,000 to $880,000 saved. Rent runs higher here at $1,139, but healthcare costs are comparatively low at $8,902, keeping the total manageable.
Its quality of life score of 43.8 is lower, yet the warm weather, rich culture, and stunning scenery help compensate. For retirees chasing sunshine and affordability, New Mexico delivers a low-cost, high-reward option.
3. Kansas
Kansas’ annual cost of living with rent is $34,369, meaning a retiree would need about $859,230 saved. The state’s low rent of $943 and moderate healthcare costs of $9,408 create a balance that few others can match.
With a solid quality of life score of 53.9 and steady expenses, Kansas works well for retirees who want predictability and affordability. Living comfortably on under $900,000 in savings is realistic here.
2. Iowa
Iowa’s annual costs reach just $31,605, which equates to a retirement savings target of $790,125. Rent averages $955, and healthcare costs stay manageable at $9,789. The overall affordability is exceptional compared to national averages.
Its quality of life score of 57.5 is among the highest on this list, making Iowa a strong choice for retirees who want both comfort and value. Affordable homes, low crime, and accessible healthcare make it easy to stretch savings further here.
1. Mississippi
Mississippi ranks first as the most affordable state for retirees. Annual living costs, including rent, total just $30,754, the lowest in the nation. With average rent at $973 and healthcare costs at $9,394, retirees only need about $768,850 saved to retire securely here.
Its quality of life score of 44.6 is modest, but when it comes to stretching every dollar, Mississippi simply can’t be beaten. For those with smaller savings who still want independence and low stress, it’s the ultimate low-cost retirement destination.
Methodology
This ranking is based on research by Neil Jesani Tax Advisors, which compared costs across all 50 states to determine where retirees need the least savings to live comfortably. Analysts gathered data on monthly cost of living (excluding rent), average rent for a one-bedroom apartment, annual healthcare expenses, overall living costs with rent, and quality of life.
The 4% withdrawal rule was applied, assuming retirees can safely withdraw 4% of their savings annually without running out of money. Annual living costs in each state were divided by 0.04 to calculate total savings required. States were then ranked from highest to lowest savings needs, highlighting where retirement funds go the furthest.
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