Top 10 States for Couples Retiring on Just Social Security (2024)

5 min Read

October 19, 2023

Social Security was never intended to be the complete source of income for retirees, but unfortunately, in many cases it is. Two retired people living on social security alone in 2023 are on a fixed income of $3,680.54 each month.

For seniors that can’t generate any additional sources of income, moving to a low-cost state can be a big help, particularly if they’re leaving high-cost areas like Southern California or New York City. States in the Midwest and ones that are non-coastal in particular can really help retirees stretch their Social Security checks.

To find the best states to live on just Social Security, GOBankingRates analyzed each state for a variety of factors including grocery cost of living index, healthcare cost of living index, utilities cost of living index, transportation cost of living index, and miscellaneous cost of living index all sourced from Missouri’s Economic and Research Information Center for State’s Cost of Living.

10. Pennsylvania

Average 2023 Rent Price: $1,664
Livability Score: 55
Total Monthly Expenditures: $1,903.98

Those looking to stretch a social security check might want to consider a move to Pennsylvania, where the monthly price for groceries will cost about $404.55.

9. Kansas

Average 2023 Rent Price: $1,666
Livability Score: 52
Total Monthly Expenditures: $1,816.72

The heartland of the country is a great place to retire, especially if you are on a limited budget. Kansas has the cheapest housing cost of living on this list, coming out to $682.03 a month.

8. Ohio

Average 2023 Rent Price: $1,212
Livability Score: 53
Total Monthly Expenditures: $1,818.26

Ohio is a wonderful option if you only have so much money to spend every month and most of it comes from social security. The Buckeye State residents typically pay $330.76 each month for their utility bills.

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7. Wyoming

Average Rent Price: $1,103
Livability Score: 52
Total Monthly Expenditures: $1,781.85

If you want to remain in the West and still live off Social Security, Wyoming is your best bet. You’ll pay less on average for all your expenses, including well below-average rent on a 877 square foot one-bedroom apartment.

6. Wisconsin

Average Rent Price: $1,477
Livability Score: 56
Total Monthly Expenditures: $1,950.99

With access to the Great Lakes and lots of great wilderness space, Wisconsin can be a lovely option for an outdoors couple in retirement. Plus, the monthly cost of healthcare typically tops out at $720.07 each month for residents.

5. North Dakota

Average Rent Price: $1,035
Livability Score: 54
Total Monthly Expenditures: $1,938.04

Those looking to save money on rent might do well by moving to North Dakota. With average one-bedroom rents barely topping $1,000 for 962 square feet.

4. Nebraska

Average Rent Price: $1,208
Livability Score: 56
Total Monthly Expenditures: $1,801.84

Getting around Nebraska as a retiree on a fixed income can be easy and affordable, with monthly transportation costs coming to about $411.50 every month.

3. Minnesota

Average Rent Price: $1,509
Livability Score: 59
Total Monthly Expenditures: $1,915.98

What you end up paying more for in rent and monthly expenses is more than made up for with Minnesota’s livability index ranking the highest on this list at 59.

2. South Dakota

Average Rent Price: $1,084
Livability Score: 55
Total Monthly Expenditures: $1,780.20

South Dakota is a state to consider for retirees because the cost of living is below the national average and rents are quite reasonable, running nearly $700 below the national average for a one-bedroom apartment.

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1. Iowa

Average Rent Price: $1,162
Livability Score: 58
Total Monthly Expenditures: $1,829.24

Iowa tops the list for best states to live on just a Social Security check thanks to a number of factors. Overall, the monthly cost of living-rent, groceries, healthcare, utilities, transportation, and any miscellaneous expenses-comes to just under $3,000.

John Csiszar contributed to the reporting for this article.

Methodology: Each expenditure category was multiplied by the national average expenditure for people aged 65 and over, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, to find the average expenditure cost for each state. The average monthly Social Security benefits was sourced from Social Security Administration’s Annual Statistical Supplement for 2023 and doubled to find the income for a couple. The average rent was sourced from RentCafe’s Rent Market Trends and combining the average rent with the expenditures gives a total average cost per state. The states above the Social Security benefits amount were removed to only show the places where a couple can afford to live. The livability of each state was sourced from the AARP’s Livability Index to show the states that are more desirable to live in. The livability index was scored and weighted at 1.25 and the total monthly cost of living was scored and weighted at 1.00. The scores were combined and sorted to show the best state to live on just Social Security Benefits. All data was collected and is up-to-date as-of October 10th, 2023.

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I'm well-versed in finance and money matters, having delved deep into economic principles, investment strategies, and the intricate workings of financial systems. I've engaged with real-world scenarios, analyzing market trends, understanding the dynamics of retirement planning, and comprehending the impact of social security benefits on retirees' livelihoods.

The article discusses the challenges retirees face when relying solely on Social Security income and the viable solution of relocating to states with lower living costs. The analysis uses various indices like cost of living, rent prices, healthcare, utilities, transportation, and miscellaneous expenses to determine the most affordable states for retirees living on Social Security alone.

The methodology involves a comprehensive approach, utilizing data from authoritative sources such as the Bureau of Labor Statistics Consumer Expenditure Survey, Social Security Administration’s Annual Statistical Supplement, RentCafe’s Rent Market Trends, and AARP’s Livability Index. By weighing factors like average expenditures for seniors, doubling the average Social Security benefits for couples, and considering livability scores, the article ranks the top ten states where retirees can comfortably sustain themselves on Social Security income.

Here's a breakdown of concepts mentioned in the article:

Social Security: The primary income source for many retirees, calculated based on one's working history and age upon claiming benefits.
Cost of Living Indices: These include various categories like groceries, healthcare, utilities, transportation, and miscellaneous expenses. The lower these indices are in a state, the more affordable it is for retirees.
Rent Prices: A significant factor in monthly expenses, particularly for retirees, directly impacting their ability to manage finances.
Livability Scores: Ratings that indicate the overall desirability and quality of life in a particular state, encompassing factors like healthcare, safety, transportation, and environment.
Data Sources and Methodology: Reliable and diverse data sources such as government surveys, rent market trends, and livability indices are used to create a comprehensive ranking system. The methodology involves weighing different factors to determine the most suitable states for retirees on fixed incomes.

Understanding these concepts and their interplay is crucial for retirees seeking optimal ways to manage their finances and sustain a comfortable lifestyle in their post-work years.