This article takes a look at the best place to live on only a Social Security check. If you're looking for more options to consider for your golden years, check out all 20 Best Places to Live on Only a Social Security Check.
On Maximizing Social Security
Estimates from the Senior Citizens League are in for the next COLA scheduled in 2025, and it seems retirees are in for some bad news. Based on current inflation data from the Consumer Price Index, it is estimated that COLA for 2025 will be a mere 2.66%, the lowest it has been since 2020.
“With the forecast of a 2.66% COLA for 2025, it appears seniors will continue to suffer financial insecurity as much next year as they have this year”. -Shannon Benton, executive director of The Senior Citizens League
Exactly how much COLA seniors will be receiving is based on an official announcement made by the Social Security Administration in October. This means retirees need to wait a couple of months more before they find out exactly how much COLA they will be getting next year. Nevertheless, it seems that retirees aren’t faring well when it comes to surviving their so-called golden years. No wonder BlackRock, Inc. (NYSE:BLK) CEO notes that the retirement system in the USA has entered a deep crisis and that it should be fixed right away.
“Today in America, the retirement message that the government and companies tell their workers is effectively: ‘You’re on your own” ... And before my generation fully disappears from positions of corporate and political leadership, we must change that". - BlackRock, Inc. (NYSE:BLK) CEO Larry Fink
Those who only have Social Security to rely on should know that retirees can claim their Social Security as early as the age of 62. However, those who do receive a penalty of up to 30% of the amount they would receive at their full retirement age. Delaying benefit claims past your retirement age till the time you're 70 ensures you receive the maximum amount of benefits. This amount is $4,873 as of 2024. Unfortunately, not all seniors have the health or resources to wait that long. Neither do they have other major sources of retirement income to survive on till the time comes that they start receiving maximum Social Security benefits.
To make use of what little they have in their retirement accounts and through Social Security checks, retirees often search for the cheapest places to live on Social Security. Our previous study highlighted some of the best states to live on Social Security, with the top five being Mississippi, Wyoming, West Virginia, Iowa, and Georgia. Retirees can start by choosing places within these states to stretch their retirement incomes a bit further. While Social Security isn’t meant to be your entire source of income, this is a sad reality for a majority of seniors across the country. Living on Social Security alone can be hard, but seniors are making it possible by retiring to some of the cheapest places to retire in the US. Till there is a solution to this crisis, relocation seems like a sound solution for many.
In other news, BlackRock, Inc. (NYSE:BLK) has seemingly come up with a new product for the looming retirement called the LifePath Paycheck. This product strives to provide a predictable, paycheck-like income stream that will aim to improve the lives of seniors. The first few record keepers to facilitate access to this product are Fidelity Investments and the Bank of America. BlackRock has also been working closely with insurers Equitable Holdings, Inc. (NYSE:EQH) and Brighthouse Financial, Inc. (NASDAQ:BHF) to provide the income stream option.
“Equitable Holdings, Inc. (NYSE:EQH)’s mission is to help our clients secure their financial well-being so they can pursue long and fulfilling lives,” The addition of secure income through defined contribution plans presents a profound opportunity to expand on the delivery of our mission. We feel privileged to support BlackRock in its LifePath Paycheck solution as it helps the record number of Americans reaching traditional retirement age reduce the risk of outliving their savings.” - Aaron Sarfatti, Chief Strategy Officer and Head of Institutional Businesses and New Ventures at Equitable Holdings, Inc. (NYSE:EQH) “Brighthouse Financial, Inc. (NASDAQ:BHF)is excited to play a role in helping U.S. workers who are seeking ways to access lifetime retirement income. The launch of LifePath Paycheck is an important step toward addressing the retirement challenges that America faces, and we are pleased to work with BlackRock on this solution.” -Eric Steigerwalt, President and CEO, Brighthouse Financial, Inc. (NASDAQ:BHF)
Methodology
To compile the list of best places to live on only a Social Security check, we began by listing out a comprehensive list of affordable places with a high livability score. Our sources included previous lists such the best places to live on Social Security Check, external sources such as CNBC, Money Talk News, and forums such as Reddit and Quora. We ranked the places on average rents, livability scores, and cost of living index. An Insider Monkey score was calculated and places were ranked in an ascending order from the lowest to the highest scores. Rents are sourced from websites such as Apartments.com and Zumper and livability scores are from Area Vibes.
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Here is the best place to live on only a Social Security check:
1. Abilene, Texas
Insider Monkey Score: 57
Cost of Living Index: 80.2
Average Rent (1-bedroom): $778
Livability Score: 73
Based on our methodology, the best place to live on only a Social Security Check is Abilene, Texas. Your SS checks are going the farthest here in the vibrant city of Texas state. Home to around 127,000 people, Abilene promises all the big-city amenities to its residents while upholding its rich heritage and hometown feel.
The median price of a home in Abilene is $235,000, while those looking to rent can do so well under $1,000. This will leave them with sufficient income to spend on other essentials such as groceries and utilities. Overall, the cost of living in the city is 19.8% lower than the national average, and the city also bags an exceptional livability score.
Abilene also boasts a historic Downtown Cultural District, which is a dynamic mix of educational museums, urban parks, and unique boutiques, as well as abundant restaurants, shops, and hotels. Home to the largest collection of public storybook sculptures of its kind in the US, the Storybook Capital of America is worth calling home in your Golden years.
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