As inflation and rising prices for basic necessities such as food and housing have put a strain on the finances of many older adults in the U.S. over the past years, a significant number have found themselves dipping into emergency savings, accumulating credit card debt, or applying for assistance programs.
According to the Senior Citizens League, a nonpartisan advocacy group, inflation has eroded 36% of Social Security's purchasing power since 2000, making it increasingly difficult for retirees to maintain their standard of living when receiving such funds.
This, coupled with an international debate over increasing life expectancy, has sparked a debate about the adequacy of retirement benefits. As people live longer, the need for adequate retirement income becomes more critical.
However, there still are some states where couples can live comfortably on Social Security.
Top 10 States for Couples Retiring on Just Social Security
For seniors who can't generate any additional sources of income beyond Social Security, moving to a low-cost state can often be a great solution, especially if they're relocating from high-cost areas like Southern California or New York City, GoBankingRates says.
States in the Midwest and non-coastal states in particular can really help retirees stretch their Social Security checks.
To find the best states to live on Social Security alone, GoBankingRates analyzed each state on a variety of factors, including grocery, healthcare, utilities, transportation, and miscellaneous all sourced from Missouri's Economic and Research Information Center for State's Cost of Living.
The most affordable state, as determined from the data, is Iowa. The state's average rent in 2023 was $1,162, with total monthly expenses around $1,800.
Here are the top 10 states with the lower cost of living, according to GoBankingRates:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
© 2024 Latin Times. All rights reserved. Do not reproduce without permission.
