Social Security Cuts: These 20 States May No Longer Be Affordable To Live in on Just a Social Security Check
Social Security could see a substantial benefit reduction in or around 2033 when trust fund reserves are estimated to run dry. Where you live could make a big difference in how far you can stretch your Social Security check.
Discover More: Suze Orman: 5 Social Security Facts Every Soon-To-Be Retiree Must Know
Read Next: Owe Money to the IRS? Most People Don’t Realize They Should Do This One Thing
A Social Security reform bill, HR-4583, was introduced to the House of Representatives and includes big Social Security changes, reported The Motley Fool. The Republican Study Committee also released its plan, in June 2023, to cut fiscal spending. One attached suggestion was to raise the full retirement age from 67 to 69, according to the National Association of Plan Advisors.
For many retirees, Social Security is their largest source of income. So, if you live or plan to live in an expensive state, you’ll need much more to cover basic living expenses. GOBankingRates analyzed data on rental rates for a one-bedroom apartment and the overall cost of living (a higher score indicates a higher cost of living) from a variety of sources to find the 20 states where a Social Security check may not be enough to live on.
1. Hawaii
2023 average one-bedroom rent: $1,811
Overall cost-of-living index: 181.5
2. California
2023 average one-bedroom rent: $1,649
Overall cost-of-living index: 139.7
3. Massachusetts
2023 average one-bedroom rent: $1,458
Overall cost-of-living index: 143.1
4. Maryland
2023 average one-bedroom rent: $1,435
Overall cost-of-living index: 120.7
Be Aware: Retirement 2024: These Are the 10 Worst Places To Retire in Florida
5. New Jersey
2023 average one-bedroom rent: $1,568
Overall cost-of-living index: 111.7
6. Connecticut
2023 average one-bedroom rent: $1,354
Overall cost-of-living index: 114.4
7. Washington
2023 average one-bedroom rent: $1,334
Overall cost-of-living index: 115.5
8. New Hampshire
2023 average one-bedroom rent: $1,331
Overall cost-of-living index: 114.6
9. Virginia
2023 average one-bedroom rent: $1,456
Overall cost-of-living index: 102.6
10. Colorado
2023 average one-bedroom rent: $1,401
Overall cost-of-living index: 104.8
11. Rhode Island
2023 average one-bedroom rent: $1,230
Overall cost-of-living index: 111.8
12. Florida
2023 average one-bedroom rent: $1,394
Overall cost-of-living index: 101.9
13. Oregon
2023 average one-bedroom rent: $1,139
Overall cost-of-living index: 116.2
14. Delaware
2023 average one-bedroom rent: $1,307
Overall cost-of-living index: 103.3
15. Arizona
2023 average one-bedroom rent: $1,172
Overall cost-of-living index: 107.1
16. Maine
2023 average one-bedroom rent: $956
Overall cost-of-living index: 112.5
17. Utah
2023 average one-bedroom rent: $1,117
Overall cost-of-living index: 102.7
18. Nevada
2023 average one-bedroom rent: $1,134
Overall cost-of-living index: 101.7
19. South Carolina
2023 average one-bedroom rent: $1,125
Overall cost-of-living index: 96.4
20. North Carolina
2023 average one-bedroom rent: $1,116
Overall cost-of-living index: 95.8
Josephine Nesbit contributed to the reporting for this article.
Methodology: For this piece GOBankingRates first found the (1) average monthly rent for a 1-bedroom as sourced from ApartmentList’s August 2023 data. GOBankingRates then used the Missouri Economic Research and Information Center’s Second Quarter Cost of Living Data series to find (2) the overall cost of living index for each state. GOBankingRates then scored and combined the two factors, with the lowest score being best. In final calculations factor (2) was weighted 1.5x. All data was colleced and is up to date as of September 11, 2023.
More From GOBankingRates
I'm a Shopping Expert: 9 Items I'd Never Put in My Grocery Cart
This is One of the Best Ways to Boost Your Retirement Savings in 2024
This article originally appeared on GOBankingRates.com: Social Security Cuts: These 20 States May No Longer Be Affordable To Live in on Just a Social Security Check
