The $24,000 retirement divide: How much income is needed to live well in every state and the least expensive places to retire

Thinking about retirement in a sunny beach town or a mountain community? Your savings may need to stretch much further depending on where you live.

New estimates show that the annual income required for a single adult to cover basic living costs can differ by more than $23,000 from one state to another.

Hawaii is the priciest state in the analysis, with an estimated yearly income need of $64,504, according to a MoneyLion review based on the MIT Living Wage Calculator.

California and Massachusetts are also near the top, at $63,402 and $63,610 respectively, suggesting that retirees drawn to coastal scenery or major cities should plan carefully.

By contrast, West Virginia is the least expensive state on the list, at $40,627 a year, followed by Arkansas at $41,615 and Kentucky at $42,040.

That leaves a gap of almost $24,000 between Hawaii and West Virginia, a difference that could amount to a very large sum over the course of retirement.

The estimates are based on a single adult with no children and are meant to offer a starting point for people judging whether pension income, savings and Social Security will be enough.

West Virginia: lower costs and mountain living

West Virginia ranks first for affordability, with a single adult needing about $40,627 a year to meet basic expenses, the lowest figure in the analysis.

That is roughly $23,877 less per year than in Hawaii, which could add up to nearly $239,000 over a decade before inflation or spending changes are taken into account.

The state offers Appalachian scenery, hiking, rivers and small-town life, and its relatively low housing costs in many areas may help retirees keep their largest monthly expense in check.

Arkansas is next at $41,615 a year, or around $3,468 a month, with the Ozarks, lakes and outdoor activities appealing to those seeking a quieter pace.

Kentucky follows at $42,040 annually, just $425 above Arkansas, combining rolling countryside, historic towns and a strong food and bourbon scene with a modest cost-of-living requirement.

Other lower-cost choices include South Dakota at $42,706, North Dakota at $42,874, Mississippi at $43,025 and Oklahoma at $43,119, all below $43,200 a year.

Ohio also appears near the cheaper end at $43,674, while Alabama is estimated at $43,814, giving retirees more options beyond Appalachia.

Still, a low statewide average does not mean every town will be inexpensive, and anyone planning a move should consider housing prices alongside access to healthcare, transportation and family support.

Hawaii and California: beautiful, but expensive

At the top of the list, Hawaii requires $64,504 a year, or about $5,375 a month, as retirees pay more to live among tropical beaches, volcanic scenery and year-round outdoor attractions.

California is close behind, with an estimated annual need of $63,402, or roughly $5,284 a month, as high housing costs in many desirable coastal and urban areas can weigh heavily on retirement budgets.

Massachusetts is slightly higher than California in this analysis at $63,610 a year, while New York is estimated at $62,167, placing both among the most expensive states for a single adult.

The figures show that the estimated income needed in Hawaii is nearly 59 percent higher than in West Virginia, underscoring how widely basic living costs can vary from state to state.

New Jersey comes in at $56,884 annually, while Washington is estimated at $55,316 and Oregon at $55,047, putting all three above $55,000.

Colorado, at $54,071, and Connecticut, at $54,178, also top $54,000, while Maryland is estimated at $53,949 and New Hampshire at $53,604.

Florida and other popular retirement states

Florida, often linked with retirement communities, warm weather and tax advantages, has an estimated annual requirement of $50,117, well below Hawaii and California.

Even so, retirees should not assume the entire state is cheap, because housing, homeowners insurance and storm-related expenses can vary widely by location.

North Carolina comes in at an estimated $46,745 a year, which may appeal to those looking for a mix of mountains, beaches and established cities.

Tennessee, another common choice for a lower-cost lifestyle, is estimated at $44,959, while Texas comes in at $45,290, though housing and property taxes can shift the picture.

How much savings may be needed

For people relying heavily on investments, the familiar four-percent rule offers a rough way to estimate the size of the portfolio needed to fund annual withdrawals.

Using North Carolina's $46,745 estimate, for instance, a retiree would need about $1.17 million invested to withdraw that amount in the first year at a four-percent rate.

Adding $10,000 a year for travel lifts that target to roughly $1.42 million, although that calculation does not fully account for inflation, surprise expenses or portfolio risk.

Social Security, pensions and other income sources could reduce the amount that must come from savings, so these figures should not be treated as a universal target.

The MIT calculator includes housing, food, healthcare, transportation, internet, other essentials and taxes, but it measures the income needed to meet basic needs rather than guarantee a comfortable retirement.

It also does not capture every retiree's travel plans, hobbies, long-term care needs or personal spending habits, and costs can differ sharply from one county to another within the same state.

In the end, the cheapest state on paper may not be the right choice if it means being far from family or specialist medical care, while a more expensive state may still be worth it for someone who can afford it.

Before making a move, retirees should compare local housing and healthcare costs, review their expected income and test their savings against inflation and unexpected bills.

The bottom line is simple: retirement is not just about how much you have saved, but how far that money will go in the place you choose to live.