5 Southern States Where $750,000 in Retirement Savings Lasts Longest
Written by
Choncé Maddox
Edited by
Zuri Anderson
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When planning for retirement, one of the most important questions you can ask is, “Where will my savings go the furthest?” The answer often depends on factors like cost of living, climate and access to essential services.
For retirees, the Southern U.S. states are an increasingly attractive option, offering a lower cost of living as well as a warmer climate.
How Long $1 Million in Retirement Will Last in Every State
If you’re wondering how long $750,000 in retirement savings (plus Social Security income) will last, here are five Southern states where your nest egg will stretch the furthest.
1. Alabama
Alabama takes the top spot as one of the best Southern states for retirees looking to maximize their savings.
With a low cost of living and some of the friendliest tax laws for retirees, this state makes it easier to stretch your money during retirement. If you have $750,000 saved, it would late you around 26.29 years in Alabama. Your annual expenses would be around $50,938 per year and just $28,524 after social security benefits kick in.
Smaller cities like Huntsville or Auburn are known to be more affordable than larger metro areas. But you can still visit cities like Montgomery and Birmingham that offer museums, theaters and historic landmarks.
2. Mississippi
Mississippi might not be the first state that comes to mind for retirement, but it’s a hidden gem for those who value affordability and charm.
With the second-lowest cost of living in the country, your savings paired with Social Security can last an impressive 26 years in Mississippi. Your annual expenses would be around $51,053 per year and just $28,639 after Social Security benefits.
Nicknamed the Magnolia State, it’s known for its Southern hospitality and slower pace of life, making it perfect for retirees who want to downshift after years of working. Oceanfront towns such as Biloxi offer affordable coastal living, while cities like Oxford boast a vibrant community filled with music, art and history.
3. Arkansas
If you’re looking for a state that offers a mix of natural beauty and affordable living, Arkansas should be high on your list.
Living on $750,000 in retirement savings would last you 26.08 years here. Your annual expenses would be around $51,169 per year and just $28,755 after Social Security benefits. Arkansas does not tax Social Security income, and property taxes here are among the lowest in the country.
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Arkansas’ nickname is “The Natural State,” seeing as how it provides retirees with access to stunning outdoor areas like the Ozark Mountains and Hot Springs National Park. Cities like Little Rock offer a balance of urban amenities without the high price tag, while smaller towns like Bentonville provide a friendly community perfect for retirees.
4. Tennessee
Tennessee is another affordable Southern state that’s ideal for retirees.
Your retirement savings would last 25.17 years in this state so it’s a great place to enjoy your golden years without overspending. Your annual expenses would be around $52,210 per year and just $29,796 after Social Security benefits. The state has no income tax, which covers Social Security and withdrawals from retirement accounts — a huge relief for retirees seeking to minimize expenses.
Explore smaller cities like Chattanooga or Knoxville for affordable living but also access to plenty of amenities, healthcare and resources. For those who enjoy milder winters and plenty of sunshine, Tennessee’s climate also makes it a comfortable place to call home.
5. Georgia
Georgia rounds out this list, offering retirees 24.69 years of financial security when combining savings with Social Security. This state is known for its booming economy and range of lifestyle options.
Whether you prefer the hustle and bustle of Atlanta or the laid-back vibe of Savannah, there’s a place for every retiree here. In Georgia, your average annual expenses would be $52,788 and be brought down to just $30,374 after Social Security benefits. This state also exempts Social Security income and offers generous tax deductions for retirement income, making it even more attractive to retirees.
Georgia is particularly appealing because it offers beautiful beaches, historic landmarks and access to some of the best healthcare in the region.
Making Retirement Affordable
While affordability plays a big role in planning your retirement, comfort goes beyond just finances. Here are a few factors that can enhance your quality of life in these five states:
- Affordable housing options: Owning a home — or even renting — in these states is significantly less expensive than in other parts of the U.S., making it easier to stick to your budget without sacrificing comfort.
- Mild climates: From the Gulf Coast to the Smoky Mountains, these states offer short, mild winters, making them ideal for anyone looking to escape snow and freezing temperatures. Not to mention, you’d avoid the financial implications of living in places with harsh winters, such as additional services for your vehicle, maintaining snow removal equipment or hiring help for snow removal and weather services.
- Tight-knit communities: Southern hospitality isn’t a myth! Retirees will find that these states are home to welcoming and friendly neighborhoods, making it easy to form connections and feel at home.
- Access to healthcare: These states offer plenty of healthcare facilities, some of which may rank nationally for specialized care. Smaller towns may lack big hospitals but are often near regional hubs with advanced medical services.
Where Will You Retire?
As you decide where to retire, it’s important to consider not just your budget but also your lifestyle and personal priorities. The Southern states listed above offer not only financial advantages but also other lifestyle benefits that could support a comfortable retirement.
Consider using a free retirement calculator to estimate how far your money will go in your dream state.
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