Most of us saving for retirement are counting on our Social Security benefits to cover part of our spending in retirement. After all, Social Security benefits are meant to replace 40% of your current income. In reality, Social Security only covers, on average, 30.11% of retirees’ spending, according to LendingTree.
Being able to keep pace with the cost of living is the reason many people move when they retire. That's also why people often look for homes in states where Social Security benefits and retirement income aren't taxed heavily or at all. They also look for homes in states that don't have estate or inheritance taxes; while it's one thing to feel taxed to death, it's worse to have your actual death taxed.
