Retiring in the South? Here's What the 5 Happiest States Will Actually Cost You

Looking to settle down in the South for retirement? Before you pack your bags, it’s worth understanding exactly what your wallet needs to handle. A comprehensive analysis comparing the best southern states to retire reveals significant differences in lifestyle expenses, even among the happiest locations.

The Numbers Behind Southern Happiness

The relationship between happiness and affordability isn’t straightforward. While income levels matter, the real indicator is whether your money stretches far enough. Across America’s most content southern communities, monthly living expenses range from just over $3,000 to nearly $4,400—before factoring in housing. Here’s what separates the affordable havens from the pricier options.

Kentucky: The Budget-Friendly Choice

Monthly expenses: $3,039.06
Happiness score: 40.6
Median income: $60,183
Cost index: 92.0

Don’t overlook Kentucky when considering best southern states to retire. With living costs running 8% below the national average, your retirement dollars work harder here. The combination of cultural attractions, outdoor recreational opportunities, and manageable expenses makes it an underrated option for retirees seeking both value and lifestyle.

North Carolina: The Balanced Play

Monthly expenses: $3,857.01
Happiness score: 53.6
Median income: $66,186
Cost index: 95.3

North Carolina strikes a middle ground for those planning retirement. Average home prices sit around $328,526, though some regions command significantly more. The state’s appeal extends beyond affordability—top-tier universities, mountains, and coastal areas provide variety for different retirement preferences. Whether you’re drawn to peaceful mountain towns or bustling urban centers, there’s flexibility here.

Georgia: The Sweet Spot for Value

Monthly expenses: $3,792.47
Happiness score: 54.1
Median income: $71,355
Cost index: 90.8

Georgia represents one of the best southern states to retire if you want activity plus savings. The diversity is remarkable—from historic Savannah to vibrant Atlanta, plus charming mountain villages. Housing averages $328,526, keeping real estate costs competitive compared to other regions. The lower overall cost index means your retirement nest egg stretches further.

South Carolina: The Lifestyle Investment

Monthly expenses: $3,633.22
Happiness score: 55.3
Median income: $63,623
Cost index: 95.3

South Carolina delivers regional variety with genuine charm. Choose between coastal living, historic towns, or mountain proximity. Home values average around $296,987, making it accessible for retirement planning. The cost of living stays below national averages while offering four distinct seasons and diverse community options.

Florida: The Premium Location

Monthly expenses: $4,368.41
Happiness score: 59.3
Median income: $67,917
Cost index: 100.7

Florida leads as the happiest southern location, largely due to zero taxes on personal income and retirement funds. However, this advantage comes with trade-offs—monthly living expenses top the list at over $4,300. Housing costs vary dramatically by location, spanning from $200,000 to over $1 million. For those where taxes are a primary concern, Florida’s benefits may justify the higher baseline costs.

Making Your Retirement Decision

The best southern state to retire in depends on your priorities. Prioritize savings? Kentucky and Georgia deliver exceptional value. Want happiness metrics aligned with affordability? Look at the Carolinas. Need tax advantages despite premium pricing? Florida’s structure might justify the expense.

Each state’s data reveals distinct trade-offs between happiness ratings, income levels, expense burdens, and housing costs. Your ideal retirement location depends on weighing these factors against your specific financial situation and lifestyle preferences.