According to Business Insider, the majority of Americans enter retirement while married. The number - nearly 60% - greatly trumps the small portion of widowed American retirees which account for 20% of the 65 and above population.
While marriage may be a retirement time norm, its adverse counterpart - divorce - also becomes more prevalent as individuals near retirement. For baby boomers specifically, Forbes reports an increasing divorce rate. For three age groups, namely, 55 to 64, 65 to 74, and 75 and above the divorce rate is 46%, 39%, and 24% respectively. Not only does marriage and its termination weigh heavily on emotional sentiments, but it also has a financial toll. After all, the US tops the list of countries that spend the most on weddings with the average American wedding costing a sizeable $29,200. As for a divorce, the Motley Fool places the average cost around $11,300.
Brown, a professor of Sociology at Bowling Green State University, talks about how a divorce later on in life when one's health and wealth are not favorable can be anything but a benign event. Especially since Social Security and related benefits are often tied to an individual's marital status.
"But for other people getting divorced in their 50s, 60s, or beyond, if they are precarious from an economic standpoint, if they are having health issues, or if they didn’t want to get divorced, it can be challenging and difficult. Longer term, we have to consider—what does divorce mean for the experience of aging?" -Susan L Brown, Professor of Sociology at Bowling Green State University and Journal Author
While the cost of marriage is one thing, its financial impact lasts much longer. For instance, an individual’s retirement income is often determined by their marital status, with the amount they receive in Social Security payments depending on it. In 2024, Social Security income for a retired couple is $3,818 per month on average, with the exact amount varying based on whether both spouses were previously working or not. In order to be eligible for spousal Social Security benefits as the spouse of a retired worker, an individual must be at least 62 years old, caring for a child under the age of 16, or caring for a disabled child.
Social Security Income vs. Minnesota
A retirement spent on Social Security checks can be limiting. One of the biggest determinants of how far your Social Security income goes is your retirement destination - and for some retired couples, their destination of choice is Minnesota. So, how does a Social Security income fare in the state of Minnesota, and is Minnesota an affordable place to live for retirees?
Starting with the biggest expense, Zillow Group, Inc. (NASDAQ:Z) lists the average monthly rent for a one-bedroom property in Minnesota to sit at $1,100. As for groceries, Zippia estimates monthly per person expenditure to be $395.39 for Minnesota residents - for a couple, this doubles to $790.78. Healthcare is next, with Royal Bank of Canada (NYSE:RY) subsidiary RBC Wealth Management estimating medical costs for a healthy retired couple to sit at a high $950.
Add these up, and your total comes out to $2,841 - a number that may not sit well with some retired couples surviving solely on Social Security checks. While high, this number doesn’t mean that affording a Minnesota retirement is impossible for retired couples surviving on a Social Security income. All that it requires is thoughtful, strategic planning - and compared to other states such as Rhode Island and Florida, a Minnesota retirement may actually be much more affordable.
To facilitate retired couples who are pondering the move to Minnesota, we have compiled a list of the 15 best places in Minnesota for a couple to live on only Social Security.
15 Best Places in Minnesota For A Couple To Live On Only Social Security
To compile this list of the 15 best places in Minnesota for a couple to live on only social security, we consulted several articles including our list of 51 Best Cities to Retire on $3,500 a Month, Nasdaq, SoFi, Niche, Movoto, Unbiased, and WorldAtlas. Once a list of places was compiled, we ranked them on their average monthly figure for a one-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 70. A unique 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 Minnesota 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 Minnesota for a couple to live on only Social Security:
15. Red Wing
Insider Monkey Score: 63
Livability: 79
IM Cost of Living Index: 90.2
Starting off our list of the best places in Minnesota for a couple to live on only Social Security is the city of Red Wing. A river town, the name of the city is related to a Sioux Indian Chief and is now popular due to the Red Wing Stoneware & Pottery and Red Wing Shoes companies. Residents will find the city to be a pleasant retirement spot complete with all necessary amenities and slow, peaceful living.
14. Mankato
Insider Monkey Score: 63
Livability: 77
IM Cost of Living Index: 86.9
Our second pick is the tri-county city of Mankato. Located in the counties of Blue Earth, Le Sueur, and Nicollet, Mankato is known as the ‘Soybean Crushing Capitol of the World’. With a cost of living that is 13.1% lower than the national average, the city is ideal for couples who are living on a Social Security income. The affordable cost of living is not an indication of fewer amenities, however. Mankato residents have access to quality healthcare, retail options, and indoor and outdoor activities.
13. Albert Lea
Insider Monkey Score: 64
Livability: 71
IM Cost of Living Index: 77.1
Albert Lea is one of the least expensive places to live on Social Security, with its cost of living being 22.9% lower than the national average. Not only does the city boast stunning views of nature as it is situated between two lakes, but it is also highly accommodating to outdoorsy senior citizens. Residents can partake in fishing, camping, boating, golfing, skiing, kayaking, biking, and much more in this peaceful city.
12. Sartell
Insider Monkey Score: 66
Livability: 83
IM Cost of Living Index: 88.5
Although the city of Sartell carries a higher average rent figure at $1,196, Zillow Group, Inc. (NASDAQ:Z) lists rentals as low as $851 for one bedrooms - good options for retirees on Social Security checks. Located alongside the Mississippi River, Sartell is known for its small-town living experience that is perfect for families and retired couples. Residents of the city can visit the Blackberry Ridge Golf Club, Pinecone Central Park, and the River Boat Depot restaurant.
11. Grand Marais
Insider Monkey Score: 67
Livability: 80
IM Cost of Living Index: 95.6
A North Shore town, Grand Marais is set on Lake Superior and is surrounded by the Superior National Forest. The area’s proximity to nature makes it a good place to live for seniors, allowing them to get out and about and soak up the fresh air and sun. Residents can visit the Sivertson Art Gallery, catch a round at Putt n Pets Mini Golf, or buy small finds at the Lake Superior Trading Post gift shop.
10. Detroit Lakes
Insider Monkey Score: 68
Livability: 78
IM Cost of Living Index: 92.6
Located in Becker County, Detroit Lakes is a small city with a population of about 10,000 at the time of the last United States Census. Set in northwest Minnesota, the city is home to several lakes, a busy main street, and an array of outdoor activity outlets. Residents can partake in a game of golf, visit Sulaine's Antique Mall for some hidden gems, and stop for a bite at The Fireside restaurant.
9. Grand Rapids
Insider Monkey Score: 69
Livability: 77
IM Cost of Living Index: 81.3
Up next on our list of the best places in Minnesota for a couple to live on only Social Security is the Itasca County city of Grand Rapids. With a cost of living that is 18.7% lower than the national average, the city is an ideal pick for retired couples bringing in a smaller joint Social Security income. Named after the Mississippi River Rapids, the city offers residents a suburban environment and access to a variety of restaurants and coffee shops.
8. Brainerd
Insider Monkey Score: 70
Livability: 70
IM Cost of Living Index: 85.5
With a low average rental figure of $550, Brainerd is one of the cheapest places to live in Minnesota. A small place, Brainerd holds a mix of popular retailers, local shops, restaurants, bakeries, and leisure outlets. Residents will be able to get away from the hustle and bustle of big-city life while having easy access to important facilities.
7. Alexandria
Insider Monkey Score: 71
Livability: 77
IM Cost of Living Index: 89
Securing the seventh spot on our list is the Douglas County city of Alexandria. A popular tourist spot due to the crystal clear lakes that surround the city, Alexandria is located a short distance away from Lake Carlos State Park. Within the city, residents can find the Andria Theatre, the Runestone Museum Foundation, and the Geneva Golf Club.
6. Rochester
Insider Monkey Score: 73
Livability: 92
IM Cost of Living Index: 97.1
Rochester’s higher average rental figure might bring up the question, ‘Is Rochester MN a good place to live?’ Well, while average rent may be higher, residents can find accommodation for as low as $525 (one-bedroom) - manageable for retired couples living on Social Security incomes. The city also offers quality healthcare, shopping options, and access to stunning displays of nature.
