This Is All You Can Buy With the Average Social Security Check
When you’re budgeting for retirement, it helps to know how much Social Security will provide and how far you can stretch the average benefits.
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As of March 2024, the average Social Security benefit for retired workers is $1,913.31 per month. Depending on where you live and how frugal you are, the money can be used to cover a lot of expenses.
Social Security is designed to replace about 40% of your earnings, so it’s not intended to become your only source of income during retirement. Still, you might be surprised at what you can and can’t afford on the average Social Security check.
A Place To Live for Under $1,500
A GOBankingRates study found 30 cities where retirees can find rentals that won’t break the bank. The average Social Security check covers rent in these cities:
Sioux Falls, South Dakota
Fort Wayne, Indiana
Des Moines, Iowa
Akron, Ohio
Lincoln, Nebraska
Omaha, Nebraska
Oklahoma City, Oklahoma
San Antonio, Texas
Columbus, Ohio
Pittsburgh, Pennsylvania
Corpus Christi, Texas
Of course, if Social Security is your only source of income in retirement, you don’t want to spend it all on rent. Instead, you might need to downsize or pick an apartment with fewer frills.
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Over 5 Months of Groceries
People ages 51-70 and older who are on a moderate food budget spend between $314-$355 per person on groceries each month, according to the USDA’s Official Food Plans for March 2024.
If your grocery habits match, you could buy up to 5.3 months’ worth of food per person with your monthly check.
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Rent for 6 Months in Malaysia
If you catch wanderlust in your golden years, you could use your Social Security check to pay for rent in another country.
For an average monthly cost of $305, you can afford a little over six months’ worth of rent in Malaysia, according to a GOBankingRates study.
Other locations abroad where you could pay less than $400 a month for rent include Romania and Hungary.
An iPhone 15 Plus
According to SeniorLiving.org, the iPhone 15 Plus is among its top three picks for best iPhones for seniors.
You can get your hands on an iPhone 15 Plus from Apple if you’re willing to pay the starting retail price of $899 or arrange for a monthly payment plan between $30-$40.
However, keep in mind that although your monthly Social Security check will cover the phone cost — including sales tax — it doesn’t cover the monthly cost of cellphone service.
The Average Mortgage in Kentucky or West Virginia
West Virginia and Kentucky have the lowest average monthly mortgage payments in the country at $1,700 and $1,711, respectively, according to Lending Tree.
However, lenders usually limit your monthly mortgage payment to 28% of your monthly income — which means that if the average $1,913.31 Social Security check is your only income, your mortgage payment shouldn’t be more than $535.72.
So, even with a relatively inexpensive mortgage in West Virginia, you’d still need more than three times the average Social Security benefit to reasonably afford your payments.
On the other end of the spectrum, a mortgage in California or Hawaii will run you $3,399 and $3,696, respectively.
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10 Months of Medicare Part B Insurance
If you have 40 or more quarters of work credit, you won’t have to pay for Medicare Part A insurance. However, Part B insurance isn’t free.
As of 2024, Part B insurance costs $174.70 per month. It covers medical services and supplies, including lab tests, surgeries and wheelchairs. After paying the yearly deductible of $240, you’ll fork over 20% of any Medicare-approved charges for covered services.
5 Months of Long-Term Care Insurance
If you’re concerned about future healthcare costs, getting a long-term care policy can help you sleep better at night.
Depending on the policy, long-term care insurance can cover the future costs of a nursing home, assisted living, in-home care and home modifications.
For a 60-year-old couple, you can buy policy for an average of $2,550 a year or $212.50 a month.
2 Rounds of Golf at Pebble Beach
If you love playing golf in your golden years, you could use your monthly Social Security benefit to pay for two rounds of golf at beautiful Pebble Beach, Calif.
Each round costs $675 or more depending on the time of year, plus $52.50 for a forecaddie, which comes out to about $727.50 per round — or $1,455 for two rounds. You’ll also need to cover the tip for your caddie.
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Almost 9 Credit Hours at Florida State University
Whether you’re looking to go back to school or you’re paying for college on a family member’s behalf, you could pay for almost nine credit hours each month — or $215.55 per credit — at Florida State University’s main campus.
If you want to help your descendants save for college, consider putting money into a 529 plan during your working years. The money in the 529 plan grows tax-free. And, as long as the money is eventually spent on qualifying college education costs, all the distributions are tax-free as well.
One-Third of a Month at an Assisted-Living Facility
The average cost of living in an assisted-living facility is $5,350 per month in the U.S., according to Genworth Financial.
If you only need adult day health care, the cost drops to $2,508.
76 Months of a Planet Fitness Black Card
Planet Fitness offers a black card that allows you unlimited access to all of its gyms for $24.99 per month.
Although a gym membership might seem unnecessary, it can be a worthwhile investment if the facilities encourage you to maintain your health — which could help reduce your expenses in retirement.
If you’d rather spend your Social Security funds somewhere else, you can try workout apps to replace your gym membership or find free ways to exercise such as taking a walk or riding a bike.
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3 Days of Renting a BMW M6
If you love driving fancy cars, you could blow your monthly Social Security benefit in just a few days by renting exotic cars.
BluStreet Exotics rents out a BMW M6 M50i starting at $499 per day, which features a V8 Twin Turbo engine that goes from 0-60 miles per hour in under 4.1 seconds. So, for your $1,913.31 benefit, you could pay for three days with over $400 to spare for gas.
2 Bottles of Lafite-Rothschild Bordeaux Blend 2022
At $799, two bottles of Lafite-Rothschild Bordeaux Blend 2022 will use up the bulk of your monthly Social Security benefit. It might dazzle your taste buds, but having a refined palate for wine can quickly consume a large chunk of your budget.
Instead, consider drinking water in place of wine or soda with your meals. Not only will it save you money, but it can help you stay in shape, too.
177 Trips to Movie Theaters
In 2024, the average movie ticket price is $10.78, according to The Numbers. You could see 177 movies at that price before you exhaust your monthly Social Security benefit. However, that doesn’t include the cost of popcorn, drinks or other snacks at the theater.
To save money, you can wait until the movie comes out on DVD and borrow it from Redbox for $2.25 a day — or from a library for free. Then, you can invite friends and family to watch the movie together — the snacks will probably cost less than two movie tickets.
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1 Louis Vuitton Bag
For the price of $1,820, you, too, can own a Louis Vuitton Alma BB Bag in Monogram. But, you’ll have less than $100 left over from your monthly Social Security check.
Instead of blowing your benefits on luxury handbags, jewelry and other clothing, try shopping at thrift stores like Goodwill to get decent clothing at a lower price.
Plus, many Goodwill stores offer additional discounts for seniors, which could help your Social Security dollars stretch even further.
Cynthia Measom and Taylor Bell contributed to the reporting for this article.
Photos are for illustrative purposes only. As a result, some of the photos might not reflect the items listed in this article.
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This article originally appeared on GOBankingRates.com: This Is All You Can Buy With the Average Social Security Check
