This article takes a look at the 5 states with the lowest average retirement age in the US. If you wish to check out our detailed analysis on retiring early, you may go to 20 States with Lowest Average Retirement Age in the US.
5. Arkansas
Average Retirement Age: 62
Average Social Security Check: $1,661
Estimated Annual Cost of Retirement: $51,237
In the state of Arkansas, people generally retire at the age of 62. The state is considered tax-friendly for retirees because Social Security isn’t taxed in Arkansas. However, withdrawals from retirement accounts are partially taxed here. The cost of living is reasonable, being 11.5% lower than the national average. Property taxes are some of the lowest in the country. However, sales taxes are high.
4. Alabama
Average Retirement Age: 62
Average Social Security Check: $1,725
Estimated Annual Cost of Retirement: $51,109
Alabama is a tax-friendly state for retirees. Social Security retirement benefits are exempt from taxation in the state, and people generally tend to retire at the age of 62. The state boasts some of the lowest property tax rates in the country. Sales taxes, however, are fifth-highest in the US.
3. Oklahoma
Average Retirement Age: 62
Average Social Security Check: $1,720
Estimated Annual Cost of Retirement: $50,750
Like many other states, the average retirement age in Oklahoma stands at 62 years. The state is considered tax-friendly, with a full exemption for social security benefits. Moreover, other types of retirement income are provided a deduction of $10,000. Property taxes are some of the lowest in the country, but sales taxes are high.
2. Alaska
Average Retirement Age: 61
Average Social Security Check: $1,695
Estimated Annual Cost of Retirement: $80,117
The state with the lowest retirement age in the US is Alaska, sharing this title with West Virginia. It takes $80,117 on an annual basis to live a comfortable retirement in the state. This is higher than the amount needed in West Virginia, placing Alaska second on our list. On average, the social security check that a retired individual receives in this state is $1,695. The state of Alaska is also a very tax-friendly state to retire to. There is no income tax in the state, which is why retirees get to keep their retirement incomes tax-free at the state level.
1. West Virginia
Average Retirement Age: 61
Average Social Security Check: $1,746
Estimated Annual Cost of Retirement: $54,011
The state with the lowest retirement age in the US is West Virginia, which shares the title with Alaska. In both the states, the average retirement age is 61 years. Overall, West Virginia is considered to be a tax-friendly state for retirees. Social security and retirement income are partially taxed here. However, seniors can claim deductions on them to offset some of the tax.
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