This article takes a look at the 15 best Midwest cities for retired couples living on just Social Security.
The Financial Landscape for Retirees: Current Trends and Challenges
October is the most anticipated time for retirees in the US. For those who don’t know, the official COLA (Cost of Living Adjustment) is announced around this time. The Senior Citizens League (TSCL) predicts that COLA is going to be 2.63% in 2025, smaller than the 3.2% COLA announced one year prior. TSCL has increased its long-term forecast to 2.63% following the April release of the inflation report by the Bureau of Labor Statistics. According to the report, CPI-W increased by 12% in the last 12 months, remaining well above the Federal Reserve’s long-term target of a 2% prevailing rate of inflation. Doing the math, the COLA estimate implies that recipients will be bringing home SS checks with an increase of around $52 only.
For most seniors, this number implies the unlikelihood of their Social Security checks to keep up with inflation. This is particularly disappointing for retirees who only have these checks to depend on in the first place. As per an AARP analysis, roughly one in seven Social Security recipients depend on these benefits for almost all of their income. Such is the importance of this program in the lives of retirees that the Social Security Administration revealed that it helped move 28.9 million people out of poverty in 2022. SSI also lifted 2.5 million people out of SPM poverty in the same year.
Last year, Social Security Administration‘s annual trustees report revealed that Social Security’s combined funds paying retirement, disability, and family funds will be able to pay benefits in full up to 2034. The program is expected to pay 80% of scheduled benefits after. Thanks to a brighter economic outlook, the projected trust fund depletion date for the program has now been pushed to 2035. Provided Congress doesn’t act soon, the Social Security program will be able to pay 83% of the benefits only from the projected depletion date.
“This year’s report is a measure of good news for the millions of Americans who depend on Social Security, including the roughly 50% of seniors for whom Social Security is the difference between poverty and living in dignity — any potential benefit reduction event has been pushed off from 2034 to 2035”.
-Social Security Commissioner Martin O’Malley
Even though the Social Security program’s depletion date has been pushed to a year later, the risk of depletion still lingers. According to BlackRock, Inc. (NYSE: BLK) CEO Larry Fink, one of the biggest challenges facing the economy today is the inability to “retire in a financially sound way”, and these depleting funds are only one reason it is so.
“Today in America, the retirement message that the government and companies tell their workers is effective: ‘You’re on your own, And before my generation fully disappears from positions of corporate and political leadership, we have an obligation to change that.”
-BlackRock, Inc. (NYSE: BLK) CEO Larry Fink
Fink believes that the retirement age of 65 is a “bit crazy”. After all, people are now living longer, social security benefits need fixing, and working longer can only help individuals gather bigger savings for their retirement.
BlackRock, Inc. (NYSE: BLK) revealed its financial results for the second quarter of 2024 on July 15th, 2024. Findings reveal that the company beat earnings expectations with a reported EPS of $10.36 compared to the anticipated $9.98. Some other highlights from the quarter include the acquisition of Preqin to enhance private market capabilities, $139 billion in net inflows in the first half of the year, and $82 billion in quarterly net inflows. The firm’s AUM reached $10.6 trillion, up $1.2 trillion year-over-year. This was steered by consistent organic growth as well as positive market movements. The positive impact of markets on average AUM, organic base fees growth, and higher performance fees and technology service revenues also resulted in an increase in revenue by 8% year-over-year.
Even though Social Security is not supposed to be the only source of income in retirement, it is an unfortunate reality for many retirees today. For such individuals, we have compiled a list of the best states to live on Social Security alone, with many states such as Ohio and South Dakota making the list. For retirees keen on living particularly in the Midwest, we have compiled a list of the best cities for retired couples living on only Social Security.
Patrick Foto/Shutterstock.com
Methodology
To compile a list of the best Midwest cities for retired couples on just Social Security, we used our previous lists such as the best Midwest cities to retire, as well as external sources to gather a preliminary list. Next, we assessed the cities on different factors such as cost of living, home prices, average rents, and livability scores to allot them a unique Insider Monkey Score. Places were ranked in ascending order from the lowest to the highest scores. Livability scores have been taken from AreaVibes, rents are from Zillow, Zumper, and Apartments, while median home prices are from Redfin and Realtor.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see the details here).
Here are the best Midwest cities for retired couples living on just Social Security:
15. Bellevue, Nebraska
Insider Monkey Score: 26
IM Cost of Living Index: 93.6
Median Home Price: $285,000
Average Rent (2-bedroom): $1,282
Livability Score: 87
Bellevue in Nebraska offers the perfect blend of small-town charm and modern amenities. Located a few miles from the beautiful Omaha skyline and bearing proximity to the scenic Missouri River, retirees get to enjoy a comfortable and fulfilling lifestyle here. Bellevue, meaning “beautiful view” in French, is a dream for outdoor enthusiasts who can enjoy nature and amenities at affordable costs. The cost of living here is 6.4% lower than the national average, while a 2-bedroom costs less than $1,500.
14. Sioux Falls, South Dakota
Insider Monkey Score: 27
IM Cost of Living Index: 91.4
Median Home Price: $330,000
Average Rent (2-bedroom): $1,145
Livability Score: 85
The next city making it to our list of the best Midwest cities for retired couples living on just Social Security is Sioux Falls, South Dakota. South Dakota was recently crowned as one of the best states to retire in the US, and Sioux Falls, its largest city, is a good choice for seniors looking for abundant amenities, high-quality healthcare, and plentiful entertainment options. Housing is pretty affordable here, and the livability score is a solid 85.
13. Worthington, Ohio
Insider Monkey Score: 28
IM Cost of Living Index: 87.2
Median Home Price: $420,000
Average Rent (2-bedroom): $1,509
Livability Score: 94
One untapped retirement destination in the state of Ohio is Worthington, offering the best of affordability, historical charm, and modern conveniences. This close-knit retirement community brimming with New England tradition is home to 21% of seniors aged 65 and over. Each day is filled with something fun to do here, from Concerts on the Green to Throwback: Sunday Funday, the details of which individuals can find on the website Experience Worthington.
12. Urbandale, Iowa
Insider Monkey Score: 29
IM Cost of Living Index: 89.8
Median Home Price: $333,500
Average Rent (2-bedroom): $1,187
Livability Score: 90
Urbandale is regarded as one of the most affordable and safest places to retire in the US. Its livability score of 90 is proof that the quality of life here is quite commendable. The cherry on top is its affordability, with living expenses more than 10% lower than the national average. From well-maintained parks and green spaces to the Des Moines River nearby, Urbandale keeps residents engaged in outdoor endeavors and abundant moments of tranquility.
11. Ankeny, Iowa
Insider Monkey Score: 29
IM Cost of Living Index: 89.3
Median Home Price: $349,445
Average Rent (2-bedroom): $1,314
Livability Score: 92
Another one of the best places to live in Iowa for retirement is Ankeny. Boasting a solid 92 in livability, Ankeny offers residents delicious food, craft beer, locally-owned businesses, miles of trails, and expansive golf courses. Uptown, its attractive downtown, together with the nearby Saylorville Lake and its two adjacent state parks are places to spend time, have fun, and engage in recreational activities. Des Moines is 20 minutes away, and residents often go there for healthcare services.
10. Lawrence, Kansas
Insider Monkey Score: 31
IM Cost of Living Index: 95.5
Median Home Price: $310,000
Average Rent (2-bedroom): $1,061
Livability Score: 88
This quintessential college town promises lots of art, high-quality healthcare, culture, sports, and plentiful green spaces. Lawrence is also a very bike-friendly city, a plus point for active seniors. It is home to LMH Lawrence Memorial Hospital, as well as several other medical centers and hospitals. There’s an Osher Lifelong Institute by University of Kansas for those interested in engaging in lifelong learning. Living expenses are 4.5% lower than the national average, and housing costs are also quite affordable.
9. Edwardsville, Illinois
Insider Monkey Score: 31
IM Cost of Living Index: 85.8
Median Home Price: $331,000
Average Rent (2-bedroom): $1,320
Livability Score: 90
Boasting living expenses 14.2% lower than the national average and a solid 90 livability score, Edwardsville in Illinois is also one of the best Midwest cities for retired couples living on just Social Security. Boasting tree-lined neighborhoods, a historic downtown, craft fairs, and farmers markets, there is lots to do to keep busy and enjoy a peaceful lifestyle here in Edwardsville. All in all, this is the perfect place to be to enjoy small-town living without compromising on the big-city amenities.
8. Appleton, Wisconsin
Insider Monkey Score: 32
IM Cost of Living Index: 87.6
Median Home Price: $282,000
Average Rent (2-bedroom): $1,114
Livability Score: 84
Situated on the Fox River, Appleton in Wisconsin ticks all the boxes for those looking for a comfortable retirement. Besides fishing in the river, retirees love this city for its lively and vibrant downtown, its trails that run along the river, its vibrant arts scene, unique shops and restaurants, as well as its many museums and galleries.
7. Grand Island, Nebraska
Insider Monkey Score: 32
IM Cost of Living Index: 83.9
Median Home Price: $260,000
Average Rent (2-bedroom): $1,152
Livability Score: 78
Next on our list of best Midwest cities for retired couples living on just Social Security is Grand Island, Nebraska. This city of around 50,000 people is home to abundant parks, trails, and lots of outdoor activities. The best thing about Grand Island, however, is its vibrant community life and affordable living. Living expenses here are 16% lower than the national average, and home prices are well below the national median.
6. Brandon, South Dakota
Insider Monkey Score: 35
IM Cost of Living Index: 84.9
Median Home Price: $365,500
Average Rent (2-bedroom): $1,032
Livability Score: 87
Known as one of the best places to retire in South Dakota, Brandon offers a family-friendly atmosphere, high quality of life, and essential amenities. It scores well on almost every factor, from home prices to rent and livability, making it an ideal place to retire. Community events, recreational activities, and parks make it even more appealing as a retirement destination.
5. Merrill, Wisconsin
Insider Monkey Score: 39
IM Cost of Living Index: 78.7
Median Home Price: $175,000
Average Rent (2-bedroom): $1,073
Livability Score: 76
Overlooking the Wisconsin River, Merrill is another affordable retirement destination for those looking to live on Social Security. Seniors get to explore the city’s historic home district, visit the three stone-arch bridges, and appreciate and enjoy its natural beauty by hiking, kayaking, mountain biking, and even cross-country skiing.
4. Fergus Falls, Minnesota
Insider Monkey Score: 43
IM Cost of Living Index: 84.4
Median Home Price: $210,000
Average Rent (2-bedroom): $909
Livability Score: 82
Bagging the fourth spot on our list of best Midwest cities for retired couples living on just Social Security is Fergus Falls, Minnesota. Situated in West Central Minnesota, Fergus Falls is a nature lover’s dream come true. This land of over 1,000 lakes is known for its scenic beauty and countless recreational opportunities such as hiking, birdwatching, and even wildlife exploration.
3. Muncie, Indiana
Insider Monkey Score: 45
IM Cost of Living Index: 82.2
Median Home Price: $127,500
Average Rent (2-bedroom): $916
Livability Score: 81
Also known as “Middletown USA”, Muncie in Indiana is another retiree favorite for its affordability and amenities. This retirement-friendly city is home to abundant parks and trails, a vibrant culture, and a tight-knit community. It is also home to Ball State University, offering the city a dynamic college-town vibe. Living expenses here are 17.8% lower than the national average, and home prices are well below the national median.
2. Youngstown, Ohio
Insider Monkey Score: 46
IM Cost of Living Index: 81.7
Median Home Price: $91,500
Average Rent (2-bedroom): $917
Livability Score: 80
Ranking second on our list of affordable Midwest cities is Youngstown, Ohio. Offering the best blend of affordability and amenities, Youngstown has also made it to our list of most affordable places to retire in the US in 2024. Once a major industrial hub, Youngstown is now recognized as a vibrant community home to a wide range of shopping, dining, and cultural places. Living expenses here are 18.3% lower than the national average, while a 2-bedroom can be rented out for under $1,000 a month.
1. Keokuk, Iowa
Insider Monkey Score: 47
IM Cost of Living Index: 78.1
Median Home Price: $108,000
Average Rent (2-bedroom): $600
Livability Score: 74
Based on our methodology, the best Midwest city for retired couples living on just Social Security is Keokuk, Iowa. Recognized as the “Geode Capital of the World”, Keokuk has some of the most diverse geode collections in the world. So much is the hype around geodes that there is an annual festival, too. For seniors who aren’t interested in geodes, there’s plenty more that the city offers. From enjoying beautiful walking paths and views of the Mississippi River at River Road Park to exploring the historic train depot at Keokuk Union Depot, there’s lots to see and do in this charming city. Living expenses are 21.9% lower than the national average, and housing costs are quite affordable for those looking to get by on Social Security.
At Insider Monkey, we delve into a variety of topics, however, our expertise lies in identifying the top-performing stocks. Currently, Artificial Intelligence (AI) technology stands out as one of the most promising fields. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
