The US states where you can retire comfortably on less than $65K-a-year

Many older Americans will be anxiously wondering where they can settle down for their later years on a tight budget.

There are 20 states where retirees can live 'comfortably' on less than $65,000 a year. according to new analysis from GOBankingRates.

Among them are rural areas in the South and Midwest, where housing, utilities and groceries tend to be cheaper.

On the other end of the spectrum, the places with the highest living expenses for retirees are states with expensive housing costs.

In Hawaii - the most expensive - a comfortable retirement is $129,296 a year, according to the study.

This is a staggering $71,000 more than West Virginia , the cheapest state on the list, at just $58,190.

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In order to calculate how much it takes to retire comfortably in each state, the study considered five factors in all 50 states.

GOBankingRates looked at Bureau of Labor Statistics data on how much residents spend on groceries, healthcare, housing, utilities and transportation - and calculated the annual income needed to cover these living expenses.

Researchers then added a 20 percent cash buffer, in order to account for retirees being able to live 'comfortably.'

Many older Americans live off Social Security payments or a fixed income, which means it is crucial that they have extra savings to fall back on in the case of an emergency.

Oklahoma follows West Virginia as the cheapest place for Americans to retire comfortably - with a necessary yearly income of $59,995.

In Kansas , the study calculated retirees would need $60,620 to cover their necessary living expenses and still have some funds left over - versus $61,176 in Alabama .

Rounding off the top 11 - all with yearly budgets of less than $63,000 - are Mississippi , Arkansas , Missouri , Iowa , Indiana and Tennessee .

The 20 states where Americans can have a comfortable retirement for under $65,000 a year also includes some of the most populous - such as Georgia, Texas and Illinois .

In Georgia, retirees need an income of $63,398, in Texas they need $64,162, and in Illinois they need an average of $64,787 for a comfortable retirement.

New Mexico just makes the cut - where residents need an average yearly income of $64,995 to cover their living expenses and have some extra cash left over.

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The median annual cost of retiring comfortably across the US is $66,870, based on CNBC calculations of the data.

The states where retirees need the highest annual income for a comfortable retired life are ones where housing expenses are particularly high.

In Hawaii, California and Massachusetts, housing is in short supply - which has pushed up property prices.

This, in turn, means the annual cost of a comfortable retirement exceeds six figures in all three states.