In this article, we take a look at the most budget-friendly place in New York for retirees to live on only Social Security. Check out our full free list at 15 Budget-Friendly Places in New York for Retirees to Live on Only Social Security.
Managing High Costs and Limited Savings in New York State
New York is notorious for its high cost of living. According to Redfin Corporation (NASDAQ:RDFN), home prices in the state were up 3.1% from last year, selling for a median price of $825,000. Redfin Corporation (NASDAQ:RDFN)’s database further reveals that 31% of New York homebuyers searched to move out of the state between the period of February to April 2024. These statistics align with what’s revealed by studies from U-Haul Holding Company (NYSE:UHAL) and United Van Lines, hinting that the state is driving moving trucks away because of its evidently high living expenses.
U-Haul Holding Company (NYSE:UHAL) calculates the growth rates for each state based on the net gain or loss of one-way equipment from customer transactions in a year. Based on U-Haul Holding Company (NYSE:UHAL) data, New York ranked 43rd out of 50 states, almost at the bottom of the list for state growth. Since retirees today don’t have much, to begin with, it’s only wise for them to search for some of the best places to live on Social Security. A new AARP survey backs this up, revealing how 1 in 5 Americans aged 50 and over have no retirement savings at all. Since retirees don’t have much to rely on, they are also in a constant fear of running out. Such is the state of pessimism and uncertainty amidst retirees concerning funds in retirement that, according to BlackRock, Inc. (NYSE:BLK), most retirees only spend 20% of their savings twenty years into retirement. Declining pension incomes and longer lives are major factors behind this as well.
“A top concern among American workers is the fear of running out of money during retirement. And yet the industry has focused on helping people understand they need to save – but not how to manage spending in retirement..”
-Anne Ackerley, Head of Retirement at BlackRock, Inc. (NYSE:BLK)
BlackRock, Inc. (NYSE:BLK) further reveals how inflation and volatility-related hardships have been setting back savers for retirement, around 62%, to be exact. This makes it even harder for them to consider retiring to areas that have a high cost of living to begin with. According to the Missouri Economic Research & Information Center, the cost of living in New York State is 25.9% higher than the national average. This means that those retiring to New York can expect to spend around $70,755 in annual expenditures, notes CNBC. More importantly, they would need more than a million dollars to retire comfortably in The Empire State. This makes it obvious for most retirees to wish to move out of the state once they hit their golden years, but not everyone has the heart or energy to. Yet others have always wished to retire to this state owing to its quality healthcare, cultural attractions, and natural beauty, amongst other things.
This brings us to the question many people ask us: How can I live on Social Security alone in New York State? While New York can be an expensive state to retire to, living off of Social Security is quite possible in many areas of the state. The key is to look for places offering a comparatively low cost of living, all without compromising on quality of life.
An aerial shot of the New York Stock Exchange, reflecting the power of public investment markets.
Methodology
To compile the list of 15 budget-friendly places in New York for retirees to live on only Social Security, we used forums such as Reddit and Quora and also conducted our own cost of living analysis for different places within New York state to come up with an exhaustive list of places that can be ideal for couples living on Social Security. Subsequently, we assessed them based on their cost of living index, average rent, and livability scores. Each location was assigned scores for these factors, which were then combined to generate a distinctive Insider Monkey score. Then, places were ranked on the final Insider Monkey score in ascending order.
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Here is the Most Budget-Friendly Place in New York for Retirees to Live on Only Social Security:
1. Binghamton
Insider Monkey Score: 28
IM Cost of Living: 82.9
Average Rent (2-bedroom): $1,178
Livability Score: 77
Based on our methodology, the most budget-friendly place in New York for retirees to live on only Social Security is Binghamton. Brimming with rich history and unique experiences, Binghamton offers retirees more than just financial ease. Popularly known as the hometown of Twilight Zone creator and renowned screenwriter Rod Serling, this city has some unique features that make it stand out from other places in New York.
For starters, it’s the “Carousel Capital of the World”-home to some of the most antique merry-go-rounds for a fun time when grandchildren come to visit. Retirees can also visit Our Space, one of the largest handicap-accessible playgrounds in the state. The First Ward Senior Center is another exciting opportunity for seniors to socialize and participate in exercise and wellness programs.
Binghamton is a good place to retire for seniors owing to its quaint charm and serene atmosphere. Housing options are also affordable here, with the median price of a home only about $155,000, as per Redfin Corporation (NASDAQ:RDFN). Those who want to rent instead can find two-bedroom apartments for an average of $1,178. Overall, the cost of living here is 17.1% lower than the national average, making it pretty affordable for retirees living only on Social Security.
Check out our free full list at 15 Budget-Friendly Places in New York for Retirees to Live on Only Social Security.
At Insider Monkey, we delve into a variety of topics, ranging from the best places to retire to retirement and investment strategies; 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.