The 3 Best States For Retirees With Only $250,000 In Their Bank Account

Retirement can be a dream come true, so long as you've done the legwork ahead of time. The amount of money Americans think they need to retire can vary based on work history, health needs, and of course, location. For those who have cashed out their 401(k) plans and work pensions and combined them with their savings to add up to a grand total of $250,000 there are three states that are ideal for retirement: Mississippi, Oklahoma, and Kansas.

Consumer Affairs noted that the "magic number" for retirement savings is $1.26 million for the average American in 2025, a figure that could feel very far out of reach for most soon-to-be retirees in the coming year. That's why it could be a smart option to move to Mississippi, Oklahoma, or Kansas — states with lower costs of living where your dollar can stretch further to meet your basic needs and beyond.

For retirees eyeing Mississippi, cost of living for a single person breaks down to $29,600 annually or about $2,467 per month, which is 48.2% below the U.S. average. To a retiree with $250,000 in savings, that could last nearly eight and half years or more, you have a partner with combined retirement income that gives you some financial flexibility.

Oklahoma offers retirees affordable costs associated with food, transportation, healthcare, and housing, as well as taxes, making the total cost of living 17.8% less than the rest of America. Along with Mississippi, Oklahoma ranks as one of the cheapest states where you can buy a home.

There's no place like home for retirees in Kansas, where a single person can meet their cost of living needs on an annual budget of about $31,200, 45.5% under the national average. That means a retiree could live comfortably for a little more than 8 years. Keeping expenses low makes Kansas one of the most affordable states to retire in the nation.

There is no one solution to retirement that fits everyone's needs. However, according to Dave Ramsey, people in the workforce should be calculating a goal for retirement savings that factors in employer retirement plans, Social Security, and other earnings. When it comes to tax advantage accounts, such as 401(k) or Roth IRA contributions, Ramsey recommended investing more than 15% or more. Depending on your total income and the age at which you retire, you could be able to save up $250,000 or more by the time it comes to clock out of the workforce.

Reaching the goal of savings is concrete. What really matters more is spending money on your retirement lifestyle and how long you can make your money last post-career. If you didn't start saving for retirement at the right age, have no fear, because there are some brilliant ways to generate extra income during retirement. Best to start planning now, however, for what the next chapter of your life looks like to ensure that you are ready to financially meet your needs. That could mean downsizing your current expenses, cutting costs to ensure your savings reaches $250,000 or more, and perhaps a move to Mississippi, Oklahoma, or Kansas in the near future.