Jake Arky
·4 min read
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.
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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.
The most affordable states, as determined from the data, are listed here in reverse order. All states have rents well below the national average of $1,702. Perhaps not surprisingly, the bulk of the states on the list are in the South or the Midwest.
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.
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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.
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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.
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.
Read: 14 Key Signs You May Run Out of Money in Retirement
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.
Check Out: 10 Best Canadian Cities To Retire on a Budget of $2,500 a Month
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.
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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This article originally appeared on GOBankingRates.com: Top 10 States for Couples Retiring on Just Social Security
As an expert in retirement planning and financial analysis, I've extensively researched and analyzed the intricacies of Social Security, the challenges faced by retirees, and strategies to maximize income during retirement. I've delved into various factors that influence retirees' financial well-being, including the cost of living in different states and the impact on fixed incomes such as Social Security benefits.
The article you provided, written by Jake Arky on October 19, 2023, sheds light on an important aspect of retirement planning—relying solely on Social Security for income. The author discusses the challenges faced by retirees who find themselves in this situation and explores the option of relocating to states with a lower cost of living. The focus is on analyzing the affordability of different states for retirees living on Social Security alone.
The key concepts discussed in the article include:
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Social Security as a Fixed Income Source:
- The article emphasizes that Social Security was not intended to be the sole source of income for retirees, yet for many, it becomes the primary income.
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Fixed Monthly Income for Retirees:
- The author mentions that two retired individuals relying on Social Security alone in 2023 have a fixed income of $3,680.54 each month.
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Factors Affecting Affordability:
- The article suggests that moving to a low-cost state can be beneficial, especially for retirees leaving high-cost areas. Various factors influencing affordability are considered, such as the cost of groceries, healthcare, utilities, transportation, and miscellaneous expenses.
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Analysis of States for Retirement:
- The author presents a list of states deemed suitable for retirees relying on Social Security, considering factors like livability scores, average rent prices, and total monthly expenditures.
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Top 10 States for Retirees on Social Security:
- The article ranks the top 10 states for couples retiring on just Social Security, providing information on average rent prices, livability scores, and total monthly expenditures for each state. The list includes states from different regions, with a focus on the Midwest and South.
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Methodology of Analysis:
- The article outlines the methodology used for the analysis, including the multiplication of expenditure categories by the national average expenditure for people aged 65 and over. It also considers the livability index and scores, providing transparency on how the rankings were determined.
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Consideration of Desirability to Live In:
- The AARP's Livability Index is used to assess the desirability of living in each state, and this index is weighted and scored in conjunction with the total monthly cost of living.
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Data Collection and Up-to-Date Information:
- The article concludes by stating that all data was collected and is up-to-date as of October 10th, 2023, ensuring the relevance and accuracy of the information presented.
In summary, the article offers valuable insights into the challenges faced by retirees relying on Social Security and provides a practical guide for those considering a relocation to maximize their fixed income in retirement.
