Frequently Asked Questions

Does a $45,000 budget include healthcare costs?

Yes. A properly structured $45,000 annual budget allocates approximately $600 to $700 per month for healthcare. This is generally sufficient to cover Medicare Part B premiums, a solid supplemental policy, and standard out-of-pocket prescription costs. However, it does not cover long-term facility care, which requires separate planning or insurance.

Are the cheapest states safe for retirees?

Safety is highly localized. While a state as a whole might have a low cost of living, crime rates fluctuate drastically from county to county and town to town. Many of the states listed above feature robust, master-planned retirement communities and quiet, historic small towns with exceptionally low crime rates. Always research specific neighborhoods rather than generalizing a whole state.

Do I have to pay taxes on Social Security in these cheap states?

None of the eight states highlighted in this guide tax Social Security benefits for a retiree living on a $45,000 income. South Dakota has no income tax at all, while the others specifically exempt Social Security from their state tax calculations. You should always verify current tax laws with the Internal Revenue Service (IRS) and your state’s department of revenue.

Relocating in retirement is one of the most effective ways to instantly improve your financial security and quality of life. You have worked hard for decades; you deserve to live in a place where your money goes further and your daily stress is minimized. Take the time to visit these states, rent an Airbnb for a few weeks, and talk to the locals. Finding the perfect fit requires patience, but the reward is a prosperous, worry-free retirement.

This is educational content based on general retirement and financial principles. Individual results vary based on your situation. Always verify current benefit rules, tax laws, and eligibility requirements with official sources like SSA, Medicare.gov, or the IRS.

Last updated: March 2026. Retirement benefits, tax rules, and healthcare regulations change frequently—verify current details with official sources.