This article looks at the best place in the South to live on only Social Security. You may want to check out our complete list of 20 Best Places in the South To Live on Only Social Security.
Social Security Struggles Amid Looming Cuts and Rising Costs
The Social Security Cost of Living Adjustment (COLA) increased 3.2% for more than 71 million Americans this year- that’s $50 on average per check. Unfortunately, a survey by Atticus reveals how an overwhelming majority of seniors relying on these checks aren’t satisfied with the amount that they are receiving. Another survey by The Senior Citizens League (TSCL) 2024 Senior Survey presents similar findings: 71% of individuals report that their household costs grew by more than 3.2% in 2023, the year that was used to determine the COLA. 53% of the survey respondents revealed how they had spent their emergency savings, while 43% noted their household expenses increased by more than $185 a month in year 2023.
For those who consider this a major blow, 2035 has much worse in store for them if things don’t change for the better. Social Security beneficiaries are going to be facing an automatic benefits cut starting 2035-one year later than predicted previously. Unfortunately, this is only a decade away, an alarming news for those who are reliant on their Social Security checks only. Once funds are depleted, beneficiaries will be able to receive only 83% of benefits. No wonder everyone is worried about the trust funds’ insolvency. Retirees who don’t have nest eggs to depend on are barely making ends meet on these checks, and ten years down the road it’s only going to get worse for them. Considering these circumstances, many individuals have been delaying their retirements, while many others have been retiring because of unavoidable reasons.
2024, in particular, has welcomed more than 4 million potential new retirees, earning it titles such as “Silver Tsunami” and “Peak 65”. While noting this trend, MetLife, Inc. (NYSE:MET) 2024 Qualifying Longevity Annuity Contract Poll reveals how 91% of plan sponsors are worried that future retirees are going to run out of money in retirement. The poll states that 83% of plan sponsors believe that more than 1 in 4 retirees are going to deplete their savings “prematurely”. 54% of the plan sponsors also believe that inflation is the greatest risk in retirement, while 23% consider longevity to be the greatest risk.
“While inflation can have a significant negative impact on retirees’ ability to rely on their savings, longevity risk should not be ignored. During retirement, individuals face a number of risks, including inflation, investment and interest rate risk. But the impact of these risks can be exacerbated the longer an individual lives in retirement”.
– Roberta Rafaloff, vice president and head of Institutional Income Annuities at MetLife, Inc. (NYSE:MET).
MetLife, Inc. (NYSE:MET) is one of the largest global providers of insurance, annuities, and employee benefit programs. The life insurance company serves more than 90 million customers in over 60 countries. In Q1 2024, the company reported a net income of $800 million, or $1.10 per share. This is a significant increase from $14 million in net income, or $0.02 per share, in the same quarter of the previous year. Adjusted earnings also surpassed analyst expectations with a 20% increase to $1.83 per share. The company will be presenting its second quarter results on July 31st. Wall Street analysts expect that the company will release earnings per share of $2.10. At Insider Monkey, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MetLife, Inc. (NYSE:MET) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
With depleting retirement savings and smaller SS checks, it is only but wise for retirees to go for geographic arbitrage. As such, some of the best states to live in on Social Security are Mississippi, Wyoming, and Iowa. For those considering areas particularly in the South, our list of best places in the South to live on only Social Security has them covered.
Methodology
To compile the list of best places in the South to live on only Social Security, we conducted a comprehensive analysis of various cities and towns in the region. Our methodology included evaluating places with high livability scores, low cost of living, and affordable rental rates. We scored these places individually and calculated a unique Insider Monkey score. Livability scores have been sourced from Area Vibes, rents are from Zillow, Apartments.com, and Zumper, while cost of living is based on our own index.
Here is the best place in the South to live on only Social Security:
1. Florence, Alabama
Insider Monkey Score: 53
Livability Score: 82
IM Cost of Living: 83.6
Average Rent (1-bedroom): $685
Based on our methodology, the best place in the South to live on only social security is Florence. Florence is often referred to as the “cake” in retirement living, whereas affordable living is the “icing on top”. Downtown becomes alive every first Friday of the month, bustling with fun exhibits, live music, and lots of food.
Check out our complete list of 20 Best Places in the South To Live on Only Social Security.
At Insider Monkey, we delve into a variety of topics, ranging from the best places to retire to the best MBA programs; 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.
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Disclosure: None. This article is originally published on Insider Monkey.
