2. Arkansas: Natural Beauty on a Budget

Known as the Natural State, Arkansas offers stunning scenery—from the Ozark Mountains to sweeping river valleys—coupled with an incredibly low cost of living. Property taxes in Arkansas are among the lowest in the nation, which is a massive advantage for retirees looking to keep their fixed housing expenses to an absolute minimum.

Arkansas does not tax Social Security benefits, and it offers a partial exemption for other forms of retirement income. While you may pay some state tax on large IRA withdrawals, a $45,000 total income will incur minimal state tax liability.

Retirees flock to specific regions in Arkansas that cater explicitly to their demographic. Hot Springs Village is the largest gated community in the United States, offering multiple golf courses, pristine lakes, and extensive security for a fraction of what a similar lifestyle would cost elsewhere. Meanwhile, the northwest corner of the state, encompassing towns like Fayetteville and Bentonville, provides a booming economy, excellent healthcare networks, and rich cultural amenities funded in part by the presence of major corporate headquarters.