15 U.S. states where you can retire comfortably on less than $65,000 a year

While building up your retirement savings is important, how much money you'll actually need depends on where you are. That's because the annual cost of living can vary by over $71,000 between U.S. states, according to a recent GOBankingRates analysis.

Hawaii has the highest average retirement expenses, with an estimated $129,296 a year needed to retire comfortably. That's more than twice that of West Virginia, where retirees need $58,190 on average.

To calculate the annual retirement costs for Americans aged 65 and older in each state, the study used Bureau of Labor Statistics estimates for food, shelter, transportation, health care, and utility expenses. A 20% cash buffer was added to this total to ensure retirees could live "comfortably," according to the study.

The large disparity in the cost of living is largely due to high housing costs. In states where housing is in short supply — like Hawaii, California, Massachusetts — the annual cost of retirement exceeds six figures.

The median annual cost of retiring comfortably is $66,870, based on the data. That said, there are 20 states where you can still retire on or under $65,000. They tend to be more rural states in the South, where the cost of living is cheaper lower.

Below is a list of states where annual retirement expenses are $65,000 or less, in alphabetical order.

Alabama

Total expenditures: $50,980
20% comfort buffer: $10,196
Cost of a comfortable retirement annually: $61,176

Arkansas

Total expenditures: $51,211
20% comfort buffer: $10,242
Cost of a comfortable retirement annually: $61,454

Georgia

Total expenditures: $52,832
20% comfort buffer: $10,566
Cost of a comfortable retirement annually: $63,398

Illinois

Total expenditures: $53,989
20% comfort buffer: $10,798
Cost of a comfortable retirement annually: $64,787

Indiana

Total expenditures: $52,253
20% comfort buffer: $10,451
Cost of a comfortable retirement annually: $62,704

Iowa

Total expenditures: $52,137
20% comfort buffer: $10,427
Cost of a comfortable retirement annually: $62,565

Kansas

Total expenditures: $50,517
20% comfort buffer: $10,103
Cost of a comfortable retirement annually: $60,620

Kentucky

Total expenditures: $53,584
20% comfort buffer: $10,717
Cost of a comfortable retirement annually: $64,301

Louisiana

Total expenditures: $53,295
20% comfort buffer: $10,659
Cost of a comfortable retirement annually: $63,954

Michigan

Total expenditures: $53,121
20% comfort buffer: $10,624
Cost of a comfortable retirement annually: $63,745

Mississippi

Total expenditures: $51,096
20% comfort buffer: $10,219
Cost of a comfortable retirement annually: $61,315

Missouri

Total expenditures: $51,211
20% comfort buffer: $10,242
Cost of a comfortable retirement annually: $61,454

Nebraska

Total expenditures: $54,047
20% comfort buffer: $10,809
Cost of a comfortable retirement annually: $64,856

New Mexico

Total expenditures: $54,163
20% comfort buffer: $10,833
Cost of a comfortable retirement annually: $64,995

North Dakota

Total expenditures: $53,700
20% comfort buffer: $10,740
Cost of a comfortable retirement annually: $64,440

Oklahoma

Total expenditures: $49,996
20% comfort buffer: $9,999
Cost of a comfortable retirement annually: $59,995

South Dakota

Total expenditures: $54,047
20% comfort buffer: $10,809
Cost of a comfortable retirement annually: $64,856

Tennessee

Total expenditures: $52,253
20% comfort buffer: $10,451
Cost of a comfortable retirement annually: $62,704

Texas

Total expenditures: $53,468
20% comfort buffer: $10,694
Cost of a comfortable retirement annually: $64,162

West Virginia

Total expenditures: $48,492
20% comfort buffer: $9,698
Cost of a comfortable retirement annually: $58,190

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