Yahoo Finance 10 Southern Cities Where Your Social Security Goes the Furthest
When Social Security was established as part of the New Deal, it was never intended to be the sole source of retirement income. It was designed simply as a safety net to supplement pensions and personal savings. But the reality is that many seniors depend heavily on these benefits. This means it can be especially important to find a city where your benefits will cover more of your expenses.
The average Social Security benefit for one person is about $1,867 per month, though this can vary based on your retirement age and when you choose to start receiving benefits. GOBankingRates recently conducted a study of Southern cities to determine the top 10 cities where your $1,867 will stretch the furthest.
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The cities on this list are the South’s most budget-friendly locales for retirees. These are smaller cities and towns, away from major metropolitan areas, where the cost of living tends to be lower. Your Social Security benefits can provide a secure retirement here, without you needing to have substantial additional savings.
Unfortunately, despite their affordability, none of the cities listed here will allow you to cover all of your expenses with your Social Security check alone. You will still need to have some savings or another source of retirement income to fully cover your living expenses. But the 10 cities below will allow you to have more of your housing, food, transportation and other basic needs paid for, allowing you to have a more comfortable and worry-free retirement.
Prichard, Alabama
Average Monthly Mortgage Payment: $283
Average Monthly Expenses: $1,889
Annual Cost-of-Living Total: $26,063
Monthly Cost of Living With Social Security: $304
Annual Cost of Living With Social Security: $3,649
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Yazoo City, Mississippi
Average Monthly Mortgage Payment: $388
Average Monthly Expenses: $1,781
Annual Cost-of-Living Total: $26,029
Monthly Cost of Living With Social Security: $301
Annual Cost of Living With Social Security: $3,615
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Selma, Alabama
Average Monthly Mortgage Payment: $362
Average Monthly Expenses: $1,805
Annual Cost-of-Living Total: $26,006
Monthly Cost of Living With Social Security: $299
Annual Cost of Living With Social Security: $3,592
Greenwood, Mississippi
Average Monthly Mortgage Payment: $462
Average Monthly Expenses: $25,841
Annual Cost-of-Living Total: $70,073
Monthly Cost of Living With Social Security: $286
Annual Cost of Living With Social Security: $3,427
Pine Bluff, Arkansas
Average Monthly Mortgage Payment: $490
Average Monthly Expenses: $1,654
Annual Cost-of-Living Total: $25,725
Monthly Cost of Living With Social Security: $276
Annual Cost of Living With Social Security: $3,311
Greenville, Mississippi
Average Monthly Mortgage Payment: $437
Average Monthly Expenses: $1,705
Annual Cost-of-Living Total: $25,705
Monthly Cost of Living With Social Security: $274
Annual Cost of Living With Social Security: $3,291
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Jackson, Mississippi
Average Monthly Mortgage Payment: $378
Average Monthly Expenses: $1,758
Annual Cost-of-Living Total: $25,633
Monthly Cost of Living With Social Security: $268
Annual Cost of Living With Social Security: $3,220
Blitheville, Arkansas
Average Monthly Mortgage Payment: $456
Average Monthly Expenses: $1,596
Annual Cost-of-Living Total: $24,625
Monthly Cost of Living With Social Security: $184
Annual Cost of Living With Social Security: $2,211
Forrest City, Arkansas
Average Monthly Mortgage Payment: $382
Average Monthly Expenses: $1,603
Annual Cost-of-Living Total: $23,825
Monthly Cost of Living With Social Security: $118
Annual Cost of Living With Social Security: $1,411
Clarksdale, Mississippi
Average Monthly Mortgage Payment: $279
Average Monthly Expenses: $1,678
Annual Cost-of-Living Total: $23,484
Monthly Cost of Living With Social Security: $89
Annual Cost of Living With Social Security: $1,070
Methodology: For this study, GOBankingRates analyzed cities in the Southern United States to find the places where your Social Security benefits go the furthest. First GOBankingRates found the cities in the Southern United States along with their total population, total households and population aged 65 and over, all sourced from the U.S. Census American Community Survey. For each city multiple factors were included such as: the cost-of-living indexes as sourced from Sperling’s BestPlaces, the livability index as sourced from AreaVibes, the average single-family house value as sourced from the Zillow Home Value Index and the average single-person income from Social Security benefits a sourced from the Social Security Administration. The cost-of-living indexes were used with the national average expenditure costs for residents aged 65 and over, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for residents aged 65 and over. Using the average single-family home value, assuming a 10% down payment and using the national average 30-year fixed mortgage rate as sourced from the Federal Reserve Economic Data, the average mortgage cost can be calculated. Using the average mortgage cost and the average expenditure cost, the total cost of living can be calculated. The cities are sorted to show the cheapest cities first, showcasing the places in the Southern United States where your Social Security goes the furthest. All data was collected on and is up to date as of July 19, 2024.
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This article originally appeared on GOBankingRates.com: 10 Southern Cities Where Your Social Security Goes the Furthest
