The Future of Social Security and the American Preparedness
First introduced into binding by then-US President Theodore Roosevelt in 1935, a lot has changed since the dawn of the Social Security Act. In 1935, the University of California Berkeley put the average American life expectancy to be 59.9 and 63.9 for men and women, respectively. As for population statistics, the US was home to some 7.8 million individuals who were either 65 years old or above, as per the Social Security Administration.
Fast forward nearly 90 years, and the Centers for Disease Control and Prevention states that the average American life expectancy has increased to 77.5 years. Similarly, the Pew Research Center indicates that the 65 and above population has swelled to 62 million. This time period also carries another marker - America’s Social Security funds and Medicare Part A funds are on the precipice of depletion, and Americans are worried.
According to the Employee Benefit Research Institute’s 2024 Retirement Confidence Survey, current retirees and workers alike are stressed over what the US government’s changes to the retirement system could mean for their own Golden Years.
“In fact, 79% of workers and 71% of retirees have this concern. Inflation’s impact on their retirement also remains a concern among workers and retirees.” -Lisa Greenwald, CEO, Greenwald Research
Konish, a personal finance reporter at CNBC, says that at least 20% in benefit cuts would be unavoidable if the government does not take action. This depicts a worrying situation for the 88% of workers who plan to draw on Social Security payments during retirement.
Furthermore, with the average monthly Social Security payment for 2024 already being well below the amount that BlackRock, Inc. (NYSE:BLK) says is required by a household run by an individual 65 or above, the heightened disparity could prove treacherous. For reference, 2024’s average Social Security check comes out to $1,907 a month, whereas BlackRock, Inc. (NYSE:BLK) estimates a monthly budget of $4,345 - a difference of over $2,400.
One question that arises from the possible instability of Social Security is, ‘Why are Americans not turning to alternative sources of retirement-time income?’ A major reason is simply not knowing the options. While we may live in a time of information overload via social media, today’s adults are subject to knowledge gaps when it comes to preparing for their retirement. For instance, the majority of Americans either turn to Social Security, employer plans, or personal savings when financially planning out their retirement. While important avenues, in doing so individuals miss out on a key retirement saving outlet - annuities.
Of course, most Americans already have annuities in the form of Social Security benefits or employer pensions. However, commercial annuities are the area where Americans are lacking. According to research by Boston College, a mere 10% of Americans own commercial annuities. There are several reasons for this number being so low.
One is a lack of understanding of what annuities are and how they work. For instance, an American College of Financial Services study that tested older US residents on their annuity knowledge via a short quiz saw the average score come out to a low 12%. The highest possible score for this quiz was 100%, meaning that the average respondent was well below passing. Other reasons why more individuals aren’t turning to annuities include their complex nature, their categorization as expensive, and the general mistrust that surrounds the topic.
Of course, whether you decide to invest in annuities or not all comes down to personal preference, but for individuals that stick to spending retirement on a Social Security income, there are certain factors to be considered. The most important, perhaps, is the question of where to retire. With financial constraints on hand, retirees will need to find a retirement destination that is both affordable and offers a good quality of living.
The state of Maryland, with its abundant coastlines and baseball culture, can prove to be a good retirement pick. Financially, the state is favorable toward retired couples on a Social Security income as Maryland is among the states that won’t tax Social Security income in 2024. However, Maryland is also an expensive state with a higher cost of living which means that some individuals may struggle, although this is at least partially offset by Maryland being among the states with the highest average Social Security payment.
As for rent, Zillow Group, Inc. (NASDAQ:Z) lists the median figure for a two-bedroom rental at $1,725 - 9% below the national median. Similarly, Maryland’s average monthly grocery bill comes out to $343.67 as per Zippia. All in all, while on the expensive side, a Maryland retirement is achievable on a Social Security retirement, and Maryland is a good place for seniors to live.
To facilitate retired couples who are pondering the move to Maryland, we have compiled a list of the 15 best places in Maryland for a couple to live on only Social Security.
15 Best Places in Maryland For A Couple To Live On Only Social Security
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Methodology
To compile this list of the 15 best places in Maryland for a couple to live on only social security, we consulted several sources including our lists on retiring to Maryland and Best Kept Secret Places to Retire in USA, as well as external sources such as WorldAtlas, home & texture, Niche, Movoto, and Acts Retirement-Life Communities. Once a list of places was compiled, we ranked them on their median figure for a two-bedroom rental, their livability scores, and their cost of living. For this article, rental prices were taken from Zillow Group, Inc. (NASDAQ:Z), livability scores were taken from Area Vibes, and the cost of living index was our own. To ensure that the recommended places held a high quality of living, we removed cities with a livability score below 60. A Insider Monkey score was then assigned to each place based on these factors, with the 15 highest-scoring places making our list of the 15 best places in Maryland for a couple to live on only social security. For cities that gained an equal score, their cost of living index was used as a tie-breaker. The resulting list is presented in ascending order.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Here are the 15 best places in Maryland for a couple to live on only Social Security:
15. Greenbelt
Insider Monkey Score: 60
Livability Score: 76
IM Cost of Living: 118.4
Median Two-Bedroom Rental: $2,000
Starting off our list of the best places in Maryland for a couple to live on only Social Security is the city of Greenbelt, set in Prince George’s County. At first glance, Greenbelt might seem like a place that retirees living on Social Security would want to stay away from, given its high cost of living and rental figures. However, with a bit of searching, senior citizens can find affordable living in the city. Not only does Greenbelt home two-bedroom rentals around the $1,700 mark but many local programs help supplement seniors’ cost of living - such as the Capital Area Community Food Bank’s Brown Bag Program and the Prescription Discount Card.
14. Hampstead
Insider Monkey Score: 63
Livability Score: 71
IM Cost of Living: 109
Median Two-Bedroom Rental: $1,750
Up next is the Carroll County town of Hampstead. A small town with a population of less than 6,500 at the time of the last United States Census, Hampstead provides its citizens with a sparse suburban feel that is ideal for a slower retirement. Residents can visit the Greenmount Bowl Bowling Alley, Lions Club Park, and the Oakmont Green Golf Course.
13. Mount Airy
Insider Monkey Score: 68
Livability Score: 71
IM Cost of Living: 107
Median Two-Bedroom Rental: $1,900
A dual-county town, Mount Airy is our next pick. Located in the counties of Frederick and Carroll, Mount Airy was originally known for its Parr’s Ridge train station located on the Baltimore and Ohio Railroad. With a warm, welcoming community, new residents of the town will fit right in, and there’s lots that they can busy themselves with. Some of the town’s best offerings include the Black Ankle Vineyards winery, the Mount Airy Museum, and Maggie’s Restaurant which serves American and French cuisine.
12. Elkton
Insider Monkey Score: 73
Livability Score: 65
IM Cost of Living: 101.7
Median Two-Bedroom Rental: $1,550
Elkton is one of thebest parts of Maryland to live in. Located in Cecil County, the town of Elkton holds a population of just under 16,000 - as per the last United States Census. The town was once named Head of Elk due to its positioning on the Elk River and was commonly known as the ‘Gretna Green of the East’ as it was a popular destination for eloping couples.
11. Thurmont
Insider Monkey Score: 76
Livability Score: 77
IM Cost of Living: 111.9
Median Two-Bedroom Rental: $1,115
Another Frederick County pick, Thurmont is another small town on our list of the best places in Maryland for a couple to live on only Social Security. Although the town carries a higher cost of living at 11.9% above the national average, it is easily possible to make a good retirement on Social Security in the town. Not only are Thurmont’s rental figures reasonable at around the $1,100 mark, but the local senior center also provides hot meals for a low price.
10. Berlin
Insider Monkey Score: 76
Livability Score: 77
IM Cost of Living: 102.2.
Median Two-Bedroom Rental: $1,600
A small town set in Worcester County, Berlin takes the tenth spot on our list. With a sparse suburban feel, the town is the perfect retirement escape for senior citizens who are looking to leave city life behind and enjoy a peaceful retirement. Residents can visit the Mermaid Museum, the Assateague State Park, and the Rum Pointe Seaside Golf Links golf course.
9. Salisbury
Insider Monkey Score: 76
Livability Score: 60
IM Cost of Living: 89.4
Median Two-Bedroom Rental: $1,350
Located in Wicomico County, the city of Salisbury is one of the most affordable places to retire in Maryland. With a cost of living that is 10.6% lower than the national average, Salisbury is particularly accommodating towards retirees living on a Social Security income. Residents can visit the Salisbury Zoological Park, the Centre At Salisbury shopping mall, and the Burnish Beer Company microbrewery.
8. Baltimore
Insider Monkey Score: 80
Livability Score: 77
IM Cost of Living: 100.3
Median Two-Bedroom Rental: $1,567
One of the best places to retire in Maryland - and the eighth pick on our list - is Maryland’s most populous city. Located in a county of the same name, Baltimore boasts a population of almost 570,000 residents, making it the perfect retirement spot for senior citizens who are craving big-city living. Residents can visit the National Aquarium, the Oriole Park at Camden Yards, and The Walters Art Museum.
7. Chestertown
Insider Monkey Score: 81
Livability Score: 65
IM Cost of Living: 92.7
Median Two-Bedroom Rental: $1,450
With one of the lowest median rental figures on our list, Chestertown is a great town for retired couples living on Social Security checks or an otherwise restricted budget. Located in Kent County, the town has a small population that numbers around the 5,500 mark as per the last United States Census. Residents can visit the Historical Society of Kent County Museum, Luisa's Cucina Italiana restaurant, and the Chestertown Farmers Market.
6. Cambridge
Insider Monkey Score: 81
Livability Score: 66
IM Cost of Living: 88.2
Median Two-Bedroom Rental: $1,200
Located in Dorchester County, the city of Cambridge is one of the best affordable places to live in Maryland. Senior citizens can enjoy a relatively affordable cost of living along with a reasonable rental figure of around the $1,200 mark. Residents can visit the Harriet Tubman Museum and Educational Center, the Long Wharf Park, and the Cambridge Premium Cinema.
