This article takes a look at the 15 best places in Alabama for a couple to live on only Social Security. If you wish to skip our detailed analysis on Social Security retirement living in the US, you may go to 5 Best Places in Alabama for a Couple to Live on Only Social Security.
Navigating A Social Security Retirement
The Social Security Administration has released figures stating that an average of 71 million United States citizens will be eligible to receive Social Security benefits and Supplemental Security Income (SSI) in 2024. Of these, the large majority are part of America’s retired population. Looking at 2023 figures, 77.8% of Social Security benefits were paid to retired workers and their dependents. In December 2023 alone, a whopping 50.1 million retired workers received over $95 billion in benefits, with figures stating that every nine in ten Americans aged 65 and older were receiving benefits.
With such a large portion of America’s retired population receiving benefits from the government, how does Social Security impact their lives? According to the AARP 2023-2024 Policy Book, Social Security benefits make up at least 90% of the income for one in five retired Americans. Further yet, for a portion of Americans, Social Security is all that they rely on during retirement. The question then arises, what does a Social Security retirement look like?
From a financial perspective, a Social Security retirement looks like $1,909 a month. For a couple, this amount grows to anywhere between $3,818 to $2,821 a month, depending on whether both spouses had been employed before retirement or one was a stay-at-home parent.
Once broken down, this figure does not amount to much. Zillow Group, Inc. (NASDAQ:Z) lists the average monthly price for a one-bedroom rental in the US at $1,595. Similarly, Zippia estimates the average two-adult American household to spend $655 per month on groceries. As for healthcare, RBC Wealth Management – which is a subsidiary of the Royal Bank of Canada (NYSE:RY) – reported that experts estimate a healthy 65-year-old couple to spend $950 a month on healthcare. While the figure reported by the Royal Bank of Canada (NYSE:RY) subsidiary will vary according to each individual’s healthcare needs, it is a reliable estimate to go by when planning the financial aspect of your retirement.
“You might think that having $1 million in retirement will last a long time, but understand that you’re going to have to spend a chunk of that on health care. If you can get in front of this before you’re retired, then you’ll be able to do some catch-up and adjust where you need to.”
-Angie O’Leary, Head of Wealth Planning at RBC Wealth Management
“These are out of pocket costs. Medicare only covers a certain number of expenses, which means people have to fill that gap. The costs start to add up quickly.”
- Griffin Geisler, Wealth Planning Consultant at RBC Wealth Management
Add all these estimated costs up, and the total comes to $3,200 for just rent, groceries, and healthcare. Assuming the higher end of the Social Security payout for a couple, this leaves behind $618 – a small amount to cover things such as transportation, utilities, clothing, expenses of the holiday season, and any vacations, among other things. For couples with only one former employed individual, the financial circumstances are even more dire.
As such, American retirees often move during retirement – either abroad or to another state – in search of lower costs of living. For retirees who want to stay within the States, making a beeline for the most affordable places to retire in the U.S. is the norm. Moreover, of the many states that American retirees can move to, Alabama is named among the best states to retire on Social Security. Insider Monkey labels Alabama as tax-friendly – for retirees specifically, the state does not tax Social Security income. Along with this, the state also offers a relatively low cost of living that is ideal for couples looking to spend their retirement on Social Security checks. For instance, Zillow Group, Inc. (NASDAQ:Z) states the average figure for a one-bedroom Alabama rental to sit at $900. All in all, this makes Alabama one of the best places to live on Social Security.
To facilitate retired couples who are pondering the move to Alabama, we have compiled a list of the 15 best places in Alabama for a couple to live on only Social Security.
Rob Hainer/Shutterstock.com
Methodology
To compile this list of the 15 best places in Alabama for a couple to live on only social security, we consulted several articles including our lists of 29 US Cities Where You Can Retire on $2,000 a Month, 20 Best US Cities to Retire with $1 Million in Retirement Savings, 20 Best Cities to Retire on a Budget of $1,800 a Month, 30 Cheapest Places Across America Where You Will Want to Retire, 25 Most Affordable Places to Retire in the U.S. in 2024, as well as external sources such as Movoto, and New Home Source.
Once a list of places was compiled using these sources, we then ranked them across multiple factors, namely, their average 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) and Zumper, livability scores were taken from Area Vibes, and cost of living indices were taken from Best Places. To ensure that the recommended places held a high quality of living, we removed cities with a livability score of below 60. 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 Alabama 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, with the highest-ranked place being presented last. It is important to remember that personal preference plays a big part. The best course of action is to visit the place you plan to move to, converse with locals, take advice from a financial consultant, and only then make your final decision.
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 Alabama for a couple to live on only Social Security:
15. Birmingham
Insider Monkey Score: 54
Livability: 67
Cost of Living Index: 87
Average One-bedroom Rental: $962
Our list of the best places in Alabama for a couple to live on only Social Security starts off strong with the Jefferson County city of Birmingham. The city boasts a cost of living that is 13% lower than the national average – perfect for retired couples trying to make a living on a Social Security income. The best part, however, is that the city doesn’t lack just because it’s affordable. With a population of almost 200,000 at the time of the last United States Census, the city carries all the amenities associated with large cities. Residents can visit the Vulcan Park and Museum, the McWane Science Center, or the Birmingham Botanical Gardens, to name a few.
14. Northport
Insider Monkey Score: 57
Livability: 76
Cost of Living Index: 88.6
Average One-bedroom Rental: $995
Located in Tuscaloosa County, Northport is best known for being the host of the Kentuck Festival of the Arts which celebrates music, artists, and folklife. The city is set on the Black Warrior River which is named after the Mississippian paramount chief Tuskaloosa, offering residents access to the great outdoors.
13. Prattville
Insider Monkey Score: 60
Livability: 75
Cost of Living Index: 91.3
Average One-bedroom Rental: $855
A dual-county city, Prattville is located in the counties of Elmore and Autauga. Offering residents a suburban environment, Prattville is famously known as ‘The Fountain City’ due to the Artesian Wells that are present throughout the city. Senior citizens can immerse in a variety of indoor and outdoor activities, all while enjoying the benefits of a low cost of living.
12. Huntsville
Insider Monkey Score: 61
Livability: 83
Cost of Living Index: 94.2
Average One-bedroom Rental: $945
What city in Alabama is best for retirees? That’s a common question that comes up during retirement planning, and Huntsville earns a spot on the list. Its low cost of living – 5.8% below the national average – combined with its high-quality medical care makes Huntsville one of the best places in Alabama for a couple to live on only Social Security. This star city has also previously made it to our lists of cheapest places across America to retire and best places to live on Social Security only.
11. Tuscaloosa
Insider Monkey Score: 61
Livability: 76
Cost of Living Index: 88.6
Average One-bedroom Rental: $925
Up next is one of Alabama’s most populous cities – Tuscaloosa. With a population of over 100,000 at the time of the last United States Census, the city carries big-city charm without the associated expenses. There’s lots for residents to do, including visiting the Capitol Park, the Tuscaloosa River Walk, and the Bama Theatre.
10. Midfield
Insider Monkey Score: 62
Livability: 61
Cost of Living Index: 87
Average One-bedroom Rental: $675
The tenth spot on our list goes to Midfield. With the lowest rental figure in our selection, the city is ideal for senior citizens who want to limit their necessities spending to a minimum and splurge on the nicer things.
9. Hoover
Insider Monkey Score: 63
Livability: 83
Cost of Living Index: 87
Average One-bedroom Rental: $1,100
Hoover is our next pick for an Alabama retirement. With a higher rental figure, the city is a sensible choice for retired couples as the added Social Security income will act as a balancing element. That said, Hoover also boasts the highest livability score on our list, indicative of the quality of life it offers to residents with retail options, indoor activities, and access to nature.
8. Chickasaw
Insider Monkey Score: 63
Livability: 61
Cost of Living Index: 84.1
Average One-bedroom Rental: $704
Not every retiree craves the experience of living in a big city, and if you’re one of them then our next pick is the perfect choice for you. A small town, Chickasaw holds a population of less than 6,500 – as per the last United States Census – offering its residents a quiet, peaceful environment. The cherry on top is the cost of living which is 15.9% below the national average – a steal for retirees looking to live on only Social Security checks.
7. Mobile
Insider Monkey Score: 64
Livability: 73
Cost of Living Index: 84.1
Average One-bedroom Rental: $865
Known as one of the safest places to retire in the US, Mobile is a port city that is an ideal retirement destination. A lively city, residents can visit the Mobile Museum of Art, the 1850 Cathedral Basilica of the Immaculate Conception, and participate in the city’s Mardi Gras festivities.
6. Auburn
Insider Monkey Score: 66
Livability: 78
Cost of Living Index: 91.9
Average One-bedroom Rental: $799
With a cost of living that is 8.1% below the national average and an average rental figure of $799, Auburn is one of the least expensive places to live on Social Security. Set in Eastern Alabama, Auburn residents can busy themselves with leisure activities around the city – and then relax with a bite at one of the city’s best eateries: The Hound.
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Disclosure: none. 15 Best Places in Alabama for a Couple to Live on Only Social Security is originally published on Insider Monkey.