Most retirement planning conversations center around hitting a million-dollar portfolio. Hearing that constant drumbeat can cause significant anxiety if your nest egg sits closer to $200,000. However, entering your golden years with this amount, combined with average Social Security benefits, can absolutely fund a comfortable, fulfilling lifestyle—provided you pick the right geography.

Geography dictates your most massive expenses: housing, property taxes, state income taxes, and healthcare. If you stay in a high-cost coastal city or a heavily taxed state, a $200,000 portfolio might deplete rapidly. If you relocate to a state with favorable senior tax policies and a lower cost of living, that same money provides a robust safety net and plenty of room for recreation.

The Math of Retiring with $200,000

Before packing boxes, you need to understand exactly what a $200,000 portfolio generates. Using the traditional four percent withdrawal rule, a $200,000 nest egg safely provides about $8,000 of supplemental income per year without dangerously depleting the principal.

That $8,000 acts as a supplement, not your primary income. According to the Social Security Administration (SSA), the average monthly retirement benefit hovers around $1,900, which translates to roughly $22,800 annually per person. A married couple both receiving average benefits might bring in over $45,000 a year. Add your $8,000 portfolio withdrawal, and your household income sits around $53,000.

To live comfortably on $53,000 a year, you must practice budget retirement planning. This means finding a community where median home prices fall well below the national average, everyday goods cost less, and the local government leaves your retirement income alone. You are looking for value, a concept beautifully summarized by one of the world’s most famous investors:

“Price is what you pay. Value is what you get.” — Warren Buffett, Investor and Philanthropist

Finding a town that offers tremendous value allows you to enjoy high-quality amenities, safe neighborhoods, and excellent medical care without the premium price tag.