This article looks at the best places in Illinois for a couple to live on only Social Security.
Managing on Social Security
Almost all workers in the US participate in Social Security by making payroll tax contributions. This means that nearly all older adults (97%) receive Social Security, or will be receiving it, in the future. While many retirees consider the checks they receive inadequate, the truth is that these benefits are much more modest than people realize. As per the Social Security Administration, the average check as of May 2024 was $1,778.24, with many retirees making much more than the average. According to the Center on Budget and Policy Priorities, these benefits replace about 39% of past earnings for an individual, although the replacement rate has fallen after the full retirement age for the program rose from 65 to 67.
As per international standards, the US ranks in the bottom third among major developed nations in terms of the percentage of average workers’ earnings replaced by the public pension system. The public pension program in an average OECD nation replaces over half of the earnings of an average worker, while the US replaces about 40%. The US Social Security Administration reveals that among beneficiaries over 65, these benefits represent 50% or more of income for 37% of men and 42% of men. For 12% of men and 15% of women, Social Security benefits account for more than 90% of their income.
On top of this- Social Security benefits are expected to deplete by 2035- one year later than previously anticipated. This is an alarming bell for the 12% of men and 15% of women who rely on it for more than 90% of their income. As per CNBC, Americans would need to double, or even triple their savings rate so that they can retire with a sufficient nest egg.
“The old-age poverty rate would soar if Social Security benefits were cut. Millions of seniors would be unable to afford basic needs, like food, shelter, and health care. Many seniors would have to turn to their children for financial help”.
-Richard Johnson, a senior fellow at the Urban Institute.
According to Prudential Financial, Inc. (NYSE: PRU), 55-year-old Americans are particularly underprepared for retirement. This generation has median retirement savings of less than $50,000, a figure that is significantly short of the ideal number Americans need for a comfortable retirement.
Prudential Financial, Inc. (NYSE:PRU) is an American Fortune Global 500 and Fortune 500 company. Its subsidiaries offer insurance, retirement planning, investment management, and other products and services to retail and institutional customers throughout the United States and in over 40 other countries. The company reported its second-quarter results on August 1, 2024, noting positive momentum across its businesses driven by robust sales, strong investment performance, and capital deployment in private alternatives in PGIM. Its adjusted operating income for Q2 2024 is $1.07 billion, compared to $956 million in the year-ago quarter. PGIM, the global investment management business for Prudential Financial, Inc. (NYSE:PRU), reports an adjusted operating income of $206 million in the quarter backed by higher asset management fees. This is up from $179 million a year ago.
Coming back to the question of living on Social Security, many potential retirees are now exploring affordable options within the US where they can live easily on their SS checks. One such state to live on Social Security is Illinois. The state of Illinois is one of the many states that don’t tax social security, is a tax-friendly state, with an affordable cost of living. For those wondering where to live in the state to stretch their checks the most, read on to uncover which parts of Illinois are best to live in on Social Security.
Methodology
To compile the list of best places in Illinois for a couple to live on only Social Security, we began by listing out cities and towns in Illinois and ranking them based on their cost of living, average rents, and livability scores. We assigned double weightage to the cost of living and rent for choosing the most affordable options in the state to live on Social Security. Places were scored and ranked in ascending order from the lowest to the highest scores. Rental data was sourced from Zillow, Zumper, and Apartments.com, while livability scores were obtained from Area Vibes.
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Here are the best places in Illinois for a couple to live on only Social Security:
15. Quincy
Insider Monkey Score: 18
IM Cost of Living: 83.2
Livability Score: 68
Average Monthly Rent (2-bedroom): $1,103
Also known as “Gem City”, Quincy is one of the best places to retire in Illinois. Home to a magnificent riverfront, 1,000 acres of beautiful park, and a lively downtown bustling with retail outlets, restaurants, and nightlife; this city has everything a senior would want to live a comfortable yet affordable lifestyle in their retirement years. Quincy is also considered a medical destination center for the Tri-State Area, with Blessing Hospital and Quincy Medical Group being notable names.
14. Kankakee
Insider Monkey Score: 18
IM Cost of Living: 82.3
Livability Score: 62
Average Monthly Rent (2-bedroom): $1,183
Sitting along the banks of the Kankakee River, Kankakee is a picturesque town for retirees looking to manage living on their Social Security checks. From plentiful scenic parks to abundant local history museums and amenities, seniors can enjoy a comfortable retirement here in the city. Medical facilities are also easily available, being home to Kankakee’s Riverside Medical Center amongst similar medical facilities.
13. Alton
Insider Monkey Score: 22
IM Cost of Living: 82.8
Livability Score: 65
Average Monthly Rent (2-bedroom): $881
Alton, a city on the Mississippi River in Madison County, offers an ideal blend of affordability, historical charm, and natural beauty. It is home to several beautiful parks, notable attractions, golf courses, and a gorgeous marina. Alton’s proximity to St. Louise offers retirees access to additional amenities too.
12. Belleville
Insider Monkey Score: 23
IM Cost of Living: 84.7
Livability Score: 79
Average Monthly Rent (2-bedroom): $1,042
Another affordable retirement destination in the state of Illinois is Belleville. This city, located a short drive away from St Louise, has a cost of living which is 15.3% lower than the national average. Retirees love Belleville for its small-town charm, abundant recreational opportunities, and welcoming atmosphere. There are more than 30 local attractions here, including museums, parks and theaters, and arts and entertainment.
11. Litchfield
Insider Monkey Score: 24
IM Cost of Living: 76
Livability Score: 69
Average Monthly Rent (2-bedroom): $925
Situated in Montgomery County, Litchfield promises retirees affordable housing, quality healthcare, good quality living, and an overall safe community. The town also features a friendly community, with numerous local events and gatherings that help cultivate a strong sense of belonging. The city is further known for its picturesque setting, with nearby lakes and parks providing opportunities for outdoor activities such as fishing, hiking, and picnicking.
10. Moline
Insider Monkey Score: 25
IM Cost of Living: 81.9
Livability Score: 75
Average Monthly Rent (2-bedroom): $972
Situated in Rock Island County, Moline is next on our list of best places in Illinois for a couple to live on only Social Security. This well-rounded retirement destination has a cost of living that is 18.1% lower than the national average, while the livability score is a solid 75. There are quality healthcare facilities available, such as UnityPoint Health, along with other essential amenities for seniors.
9. Olney
Insider Monkey Score: 26
IM Cost of Living: 75
Livability Score: 69
Average Monthly Rent (2-bedroom): $913
The beautifully maintained city of Olney is best known for its affordability, small-town charm, and recreational activities. The cost of living here is 25% lower than the national average, making it an economical choice for retirees. Olney offers a variety of recreational opportunities, including the nearby Richland County Lake, which is ideal for fishing and boating. Animal lovers will be pleased to know that Olney is home to the white squirrel.
8. Mattoon
Insider Monkey Score: 28
IM Cost of Living: 73.4
Livability Score: 64
Average Monthly Rent (2-bedroom): $1,005
Lying in the heart of Coles County, Mattoon is an appealing choice for seniors with limited income. This town with rich history and tradition has now grown into a bustling community. There is a lively downtown with many local restaurants, bars, and shops. The cost of living here is 26.6% lower than the national average, while the monthly rent for a two-bedroom is around $1,000. Assuming both partners receive Social Security checks, a couple can easily retire in Mattoon.
7. Effingham
Insider Monkey Score: 30
IM Cost of Living: 80.6
Livability Score: 77
Average Monthly Rent (1-bedroom): $921
Next on our list of best places in Illinois for a couple to live on only Social Security is Effingham. Located in South Central Illinois, the cost of living in the city is 19.4% lower than the national average. There are quality healthcare facilities available, numerous parks, local events, as well as recreational facilities. The community is overall quite friendly too.
6. Galena
Insider Monkey Score: 31
IM Cost of Living: 83
Livability Score: 80
Average Monthly Rent (1-bedroom): $776
Situated in Northwest Illinois, Galena is a charming and historic town where couples can manage living on Social Security. This small yet picturesque city is famous for its well-preserved 19th-century architecture, rich history, and quality healthcare facilities. There are numerous local events, art galleries, restaurants, and boutiques to explore as well.
5. Sterling
Insider Monkey Score: 31
IM Cost of Living: 78.2
Livability Score: 67
Average Monthly Rent (2-bedroom): $858
Previously nicknamed “Hardware Capital of the World”, Sterling has a history in manufacturing and the steel industry. As of today, the city is revered for its affordable living, access to the outdoors, and scenic views. It lies along the north bank of the Rock River, offering abundant fun for seniors with its recreational activities.
