Best and Worst States To Retire in 2026 To Stretch Retirement Savings Most

Choosing where to retire isn’t just about lifestyle — it can determine how long your savings last.

If affordability is your top priority, a new 50-state analysis from Western & Southern Financial Group highlights where retirees face the lowest and highest living costs. The report ranks states using multiple factors tied to retirement readiness, including a cost-of-living index designed to show where retirees can stretch their budgets further.

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Based on the cost-of-living portion of the analysis, these are the most and least affordable states for retirees.

States With the Lowest Cost of Living for Retirees

These states have the lowest cost of living, ranked from most to least affordable:

1. Oklahoma

2. Mississippi

3. West Virginia

4. Alabama

5. Kansas

States With the Highest Cost of Living for Retirees

These states have the highest living costs for retirees. They're ranked from least to most affordable:

1. Hawaii

2. California

3. Massachusetts

4. New York

5. Alaska

How Retiree Income Changes What 'Affordable' Really Means

It's important to note that low costs can coincide with lower retiree income, while high-cost states may have higher retiree incomes. Affordability is about the gap between income and expenses, not just prices.

Some of the states with the lowest living costs also have some of the lowest median household incomes among those ages 65 and older:

• Mississippi has the second-lowest living costs, but also the lowest median household income at $44,031.

• West Virginia has the second-lowest median household income at $45,778.

On the flip side, some of the states with the highest living costs also have the highest median household incomes for retirees:

• Hawaii has the highest cost of living and the highest median household income: $91,390.

• California also ranks among the states with the highest median household income for those ages 65 and older, at $71,673.

Remember that no matter where you choose to live, there will likely be tradeoffs. If you’re considering retiring in a high-cost state, make sure you have a plan to pay for housing and healthcare, in addition to everyday expenses. If you’re considering a low-cost state, check access to the services and amenities you will want in retirement.

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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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