There are millions of retirees who rely on Social Security and a new government report shows that the value of Social Security checks depends on the state that you live in. This simply means that two retirees can earn the same amount however, their lifestyles may be completely different because of the states they live in.
Even though Social Security was meant to provide financial support during retirement, as the cost of living is constantly increasing, it’s becoming difficult to make benefits last longer and in some states, the cost of living is much higher than others.
Some States Are Affordable — Others Are Extremely Expensive
Throughout the country, the cost of living changes. Hawaii is at the top of the list for being the most expensive state for retirees to live in. In order to live quite comfortably, you need approximately $110,000 a year.
However, in states such as West Virginia and Oklahoma, retirees are looking at living on approximately $51,000 to $52,000 a year to live comfortably. In these states, the cost of housing, groceries and other essential items are much lower and manageable.
From this, it can be noted that, a retiree in Hawaii and a retiree in Oklahoma can get the same Social Security check, yet one can barely survive while the other can cover most of their needs.
City Costs Make the Gap Even Wider
Even in the same state, retirement lifestyles can change from city to city. McAllen, Texas seems to be one of the most affordable cities in the country. You can retire comfortable on approximately $61,800 a year, and the average Social Security benefit covers more than one-third of those expenses.
However, in opposition to this, San Francisco seems to be one of the most expensive cities to retire in.
There are many retirees who choose to move to more affordable states or even smaller cities because of these contradictions.
Singles vs. Couples: Two Checks Don’t Always Mean More Comfort
Sometimes we assume that couples live comfortable lives during retirement because they receive two Social Security checks. A retired couple, when their checks are combined, might bring in approximately $3,208 a month.
With that being said, it’s important to note that couples spend more because it’s now a cost for two people. With the rising cost of living, two Social Security checks don’t always mean more secure life
Simply put, if one person requires approximately $60,000 per year, a couple would most likely need almost double that if not more, this is especially for areas where the cost of living is high.
Why Many Retirees Do Better in Smaller Towns
It’s possible that Social Security may last longer in rural areas and smaller communities. The reason for this is because the cost of goods and services in these areas are slightly cheaper.
Social Security may pay for the majority of necessities for retirees in certain locations. However, relying solely on Social Security can be very challenging for people who live in big cities, where rent alone might eat up the majority of their income.
For this reason, many retirees may choose to downsize and relocate to communities which are more affordable, or some may even move to a completely different state in order to save money.
The Bottom Line: Social Security Helps, but It’s Not Enough for Most
It can be noted that Social Security is helpful yes, but it’s not something that an individual can solely rely on to cover all living expenses, especially in expensive states. The cost of groceries, housing and medical care continues to increase and there are many retirees who are finding it difficult to cope.
The best option is to plan ahead and budget accordingly. Where possible, cut down on unnecessary expenses and look into other savings and investment options to ensure financial stability.