Planning for retirement involves more than just saving money; it also requires careful consideration of where those savings will stretch the furthest.
The cost of living, healthcare expenses, and taxes vary significantly from state to state, directly impacting how long a retirement fund can last. In fact, recent studies reveal that retirees in states like New York, California, Hawaii, Alaska, and Massachusetts are projected to run out of money years before they run out of time, with average shortfalls as high as $448,000 in New York alone. Nationwide, the average retirement savings gap has surged to about $115,000.
For retirees seeking to preserve their nest egg, selecting a location with a low cost of living and favorable tax policies is an essential strategic decision.
Alabama
Alabama consistently ranks among the most affordable states in the nation. The overall cost of living is approximately 13% below the national average, with particularly low housing costs.
For retirees, this financial advantage is compounded by a state income tax system that fully exempts social security benefits and most private and public pension income. Property taxes are also among the lowest in the country, allowing retirees to retain a greater portion of their wealth.
Mississippi
Mississippi offers the lowest cost of living in the United States, making it a prime destination for budget-conscious retirees. Housing, in particular, is exceptionally affordable, with median home prices well below national figures.
Furthermore, Mississippi’s tax policies are highly favorable to retirees. The state does not tax social security benefits, IRAs, 401(k)s, or any other form of qualified retirement income, which significantly reduces the annual tax burden on seniors.
Arkansas
With a cost of living nearly 12% below the national average, Arkansas provides a financially stable environment for retirees. The state offers affordable housing and healthcare services.
While Arkansas does tax some retirement income, Social Security benefits are fully exempt, and a substantial deduction is available for other types of retirement income. This tax structure, combined with low daily expenses, helps retirees’ savings last longer.
Oklahoma
Oklahoma presents an attractive financial picture for retirees, with a cost of living that is about 15% lower than the U.S. average. The affordability of housing is a major contributor to this, allowing retirees to downsize or purchase a home without depleting their savings. Oklahoma also offers favorable tax conditions, including an exemption for Social Security benefits and a deduction for other retirement income, ensuring that state taxes do not significantly diminish fixed incomes.
Tennessee
Tennessee is a popular choice for retirees due to its scenic beauty and financial benefits. It is one of the few states with no state income tax, which means that social security benefits, pensions, and other retirement income are exempt from taxation at the state level.
Sales and property taxes are closer to the national average. Still, the absence of an income tax provides a significant financial advantage, allowing retirement funds to be allocated to other priorities, such as healthcare and travel.
Georgia
Georgia combines a low cost of living with a moderate tax environment, making it a financially sound choice for retirement. The overall cost of living is below the national average, particularly in the areas of housing and transportation.
For retirees, Georgia’s tax code is particularly beneficial, as it exempts Social Security income and offers a generous deduction for most other types of retirement income for individuals aged 65 and older.
Michigan
Michigan’s overall cost of living is approximately 10–12% lower than the national average, with housing costs being especially favorable. The median home value is roughly $154,900, compared to the national median of over $400,000.
For retirees, Michigan’s tax policies are accommodating. Social Security benefits are not taxed, and while other retirement income is partially taxed, the overall tax burden remains manageable when combined with the low cost of daily living.
Missouri
Missouri provides a low cost of living, approximately 10% below the national average, making it an affordable option for retirees. The state’s tax system is also structured to benefit seniors.
Social security benefits are fully deductible for individuals meeting certain income thresholds, and additional deductions are available for public and private pension income. These financial incentives, coupled with affordable housing, help preserve retirement savings.
West Virginia
West Virginia is recognized for its low cost of living and beautiful mountain landscapes. The state has made significant strides to become more tax-friendly for retirees.
As of 2022, 100% of social security income is exempt from state taxes. Additionally, the state is phasing in an exemption for other forms of retirement income, further enhancing its appeal as a destination where savings can be sustained over the long term.
Indiana
Indiana offers a blend of affordability and accessible amenities, with a cost of living that is consistently below the national average. The median home value is around $260,000, and healthcare expenses rank among the lowest in the Midwest.
From a tax perspective, Indiana is advantageous for retirees as it does not tax Social Security benefits. While other retirement income is subject to a flat state income tax, the low rate and overall low cost of living make it a financially viable option.
Iowa
Iowa is another state where retirees can benefit from a low cost of living and favorable tax laws. The state’s housing market is notably affordable, and healthcare is rated highly for both quality and price.
For 2023, Iowa has eliminated taxes on all retirement income for individuals aged 55 and older, including pensions, 401(k)s, and IRAs. This significant tax reform positions Iowa as a top contender for retirees looking to maximize their savings.
Wyoming
While known for its wide-open spaces, Wyoming is also one of the most tax-friendly states for retirees. There is no state income tax, which means that all forms of retirement income, including Social Security, pensions, and withdrawals from retirement accounts, are tax-free.
Although the cost of living is closer to the national average than in other states on this list, the absence of an income tax provides a significant financial benefit that can substantially extend the life of a retirement portfolio.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
16 Grocery Staples to Stock Up On Before Prices Spike Again
16 Grocery Staples to Stock Up On Before Prices Spike Again
I was in the grocery store the other day, and it hit me—I’m buying the same things I always do, but my bill just keeps getting higher. Like, I swear I just blinked, and suddenly eggs are a luxury item. What’s going on?
Inflation, supply-chain delays, and erratic weather conditions have modestly (or, let’s face it, dramatically) pushed the prices of staples ever higher. The USDA reports that food prices climbed an additional 2.9% year over year in May 2025—and that’s after the inflation storm of 2022–2023.
So, if you’ve got room in a pantry, freezer, or even a couple of extra shelves, now might be a good moment to stock up on these staple groceries—before the prices rise later.
6 Gas Station Chains With Food So Good It’s Worth Driving Out Of Your Way For
6 Gas Station Chains With Food So Good It’s Worth Driving Out Of Your Way For
We scoured the Internet to see what people had to say about gas station food. If you think the only things available are wrinkled hot dogs of indeterminate age and day-glow slushies, we’ve got great, tasty news for you. Whether it becomes part of a routine or your only resource on a long car trip, we have the food information you need.
Let’s look at six gas stations that folks can’t get enough of and see what they have to offer for you to eat.
