7 Most Affordable States for Struggling Baby Boomers
The cost of living across the country has become more expensive over the past several years due to inflation but with some states much worse than others.
If you’re a baby boomer who has just now retired or is planning to retire in the next few years, you may be considering moving to a state that’s easier on the wallet. In the past, you might have been required to live somewhere for your career, but now have the freedom to live where you choose.
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To determine which states are the most affordable, we looked at the cost of living by state and some basic expenses that baby boomers might have, such as groceries, health care, and homeownership costs from various trusted sites and sources.
Utah
Utah’s total cost of living is $56,436. With a median state income of $89,168, the total cost of living as a percentage of income is about 63.3%. This is the lowest state in terms of percentage of income.
Utah also has low healthcare costs, which may be of particular interest to baby boomers. According to the Bureau of Economic Analysis, healthcare accounts for about 7% of the median income in Utah, which amounts to about $6,213. While this may sound like a lot of money, Utah is the lowest state in terms of dollar amount and income percentage.
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Mississippi
The cost of living in Mississippi is only $38,412. However, the median income is the lowest in the country at $52,719. If you are a retired baby boomer who isn’t planning to work anymore, you may not care about the state’s median income.
“Mississippi has one of the lowest cost of living indexes in the country, which includes low healthcare costs — a significant factor for aging populations,” said Dennis Shirshikov, head of growth at Gosummer.com. “The state also exempts all qualified retirement income from state income tax, making it a financially sensible option for retirees.”
Arkansas
Like Mississippi, Arkansas has a meager cost of living of only $38,412 and a median income of $55,432. Since you may no longer be concerned with income potential, your money may go further in Arkansas.
Arkansas is also an attractive place to live as a homeowner. The yearly median homeowner costs are the second-lowest in the country, at $14,592.
“Arkansas offers a blend of low property taxes and affordable healthcare, which are crucial for baby boomers looking to stretch their dollars,” said Andreis Bergeron, VP of sales at Awning.com. “The state also has a lower than average cost of living, which extends to essentials such as groceries and utilities. For example, the town of Bella Vista has become a hub for retirees due to its low housing costs and community amenities like golf courses, which provide leisure without financial strain.”
Kentucky
The cost of living in Kentucky is $42,119, making it the eighth-cheapest state for struggling baby boomers. It is also affordable to own a home, with the yearly median homeowner cost being $15,792.
“Kentucky presents an attractive option for baby boomers seeking financial stability,” said Nyx Sherwin, CEO of We Buy 502. Kentucky offers lower-than-average living expenses, including food, housing, and healthcare. Additionally, Kentucky has tax-friendly policies for retirees. The state allows for a certain amount of retirement income to be excluded from state taxes, and this financial relief might assist struggling baby boomers in managing their resources more efficiently.”
Iowa
Groceries are cheap in Iowa. The average reported yearly grocery spending is only $2,728, according to the U.S. Census Week 63 Household Pulse Survey. This makes Iowa the second-cheapest state for groceries.
West Virginia
West Virginia ranks third for the lowest total cost of living and fifth for average reported yearly grocery spending. Residents spend an average of $2,871 on groceries yearly, and the cost of living is only $39,507.
West Virginia is also the cheapest state in which to own a home. The yearly median homeowner cost is only $13,932.
Oklahoma
Finally, Oklahoma is another state to consider if you want to retire someplace more affordable. Not only does the cost of living rank ninth in the country at $42,428, but they also have low homeowner and health care costs.
“Oklahoma also merits attention, particularly for its affordable housing market and overall low expenditure requirements,” Shirshikov said. “The median home cost is considerably below the national average, which could be a game-changer for baby boomers looking to downsize and maximize their retirement savings. Moreover, Oklahoma offers a friendly tax environment for retirees, including low property taxes and significant exemptions on social security and pension incomes.”
The Bottom Line
Before you decide to move to a more affordable state, it’s important to consider whether it’s the best decision for you. While the cost of living could be lower, you need to think about the additional travel expenses if you are moving away from your family.
It’s also important to consider other factors like your potential social life in the new location, transportation options if you plan to stop driving, crime rates, and proximity to entertainment, restaurants, and shops. Considering all of these factors will help you make the best decision for your situation.
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This article originally appeared on GOBankingRates.com: 7 Most Affordable States for Struggling Baby Boomers
