As inflation drives up the cost of living across the United States, many retirees are discovering that their Social Security benefits are no longer enough to cover their basic expenses. This is particularly true in major cities where the cost of living is sky-high. In 2024, the average monthly Social Security payout is around $1,900, but this amount doesn’t go very far in the most expensive urban areas.
A new study by GoBankingRates, covered by Newsweek, shows the cities where Social Security benefits fall the most short for retirees. The analysis compared the average cost of living in 100 major U.S. cities against the average Social Security payment. The findings highlight a growing concern for retirees who are primarily relying on Social Security in their golden years.
Cities Where Social Security Benefits Fall Drastically Short
According to the study, the top five U.S. cities where Social Security benefits do not cover living expenses are:
San Francisco
Irvine
Honolulu
New York City
San Diego
In these cities, retirees would need to supplement their Social Security by more than $2,000 per month to meet basic living expenses. For example, retirees in San Francisco need an additional $2,421.42 each month just to cover the cost of living.
San Francisco: The average retiree would need an extra $2,421.42 per month.
Irvine and San Diego: Both cities in Southern California require around $2,000 extra monthly.
New York City: Due to high rents, transportation costs, and healthcare, the gap for retirees is similarly large.
Why Are Retirees Leaving Expensive Cities?
The rising cost of living in these major cities is pushing many retirees to consider relocating. As reported by LiveNow Fox, more and more seniors are choosing to move to more affordable areas where their Social Security benefits go further.
Some of the cities that are becoming increasingly popular among retirees looking for lower housing costs and fewer taxes include:
Lubbock, Texas
Tulsa, Oklahoma
Augusta, Georgia
These cities offer significantly lower rent prices, reduced property taxes, and overall lower living expenses, making them much more manageable for those living on a fixed income.
The Growing Gap Between Social Security and Living Costs
While Social Security was never meant to be the sole source of income in retirement, the gap between benefits and actual living costs is becoming more apparent. Many retirees may have to find additional sources of income or make tough choices about where they live. This situation is prompting many seniors to reconsider their options, especially when living in high-cost cities can make it almost impossible to survive on Social Security alone.
For retirees living in high-cost cities like San Francisco, Irvine, Honolulu, New York City, and San Diego, Social Security benefits are proving insufficient to meet their basic living expenses. Many are being forced to look for more affordable places to live. If you’re planning for retirement, it’s important to factor in the cost of living in your area and consider the possibility of moving to a more affordable city where your Social Security income can stretch further.