Yahoo Finance How Much of Your Living Costs Will Social Security Cover in These 10 Illinois Cities
Social Security was never intended to cover a retired person's entire budget. Rather, it was designed as a supplementary source of income to complement a retiree's own personal savings. However, many Americans do indeed live off nothing more than a Social Security check, and for them, it's particularly important to find an affordable place to live.
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With this in mind, GOBankingRates conducted a study of the 10 most populous cities in Illinois, which is generally a low-cost state. Using data from Sperling's Best and the U.S. Bureau of Labor Statistics 2021 Consumer Expenditure Report, we analyzed how much an average couple age 65 and older would spend on monthly necessities like rent, healthcare, utilities and groceries. Total monthly expenditures on necessities were then compared with the average Social Security benefit for retirees, which was $1,632.04 per month as of Nov. 2022.
Using this data, we then calculated the percentage of monthly expenditures that the average Social Security check would cover in the 10 biggest cities in Illinois. The results are presented here in reverse order, with the most expensive city appearing last. Although Illinois is a lower-cost state than many in the country, retirees would still have to stretch their money a long way if they were living only on Social Security.
Rockford
% Social Security Will Cover for Single Person Necessities Cost of Living: 73.84%
Monthly Necessities Expenditures: $2,210.10
2022 Average Monthly Rent: $930
Monthly Groceries Cost: $335.78
Monthly Healthcare Cost: $620.40
Monthly Utilities Cost: $324.14
Springfield
% Social Security Will Cover for Single Person Necessities Cost of Living: 72.01%
Monthly Necessities Expenditures: $2,266.50
2022 Average Monthly Rent: $941
Monthly Groceries Cost: $351.14
Monthly Healthcare Cost: $654.96
Monthly Utilities Cost: $319.89
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Champaign
% Social Security Will Cover for Single Person Necessities Cost of Living: 68.23%
Monthly Necessities Expenditures: $2,391.95
2022 Average Monthly Rent: $1,073
Monthly Groceries Cost: $356.01
Monthly Healthcare Cost: $652.62
Monthly Utilities Cost: $310.74
Peoria
% Social Security Will Cover for Single Person Necessities Cost of Living: 67.37%
Monthly Necessities Expenditures: $2,422.33
2022 Average Monthly Rent: $1,113
Monthly Groceries Cost: $348.52
Monthly Healthcare Cost: $656.13
Monthly Utilities Cost: $304.20
Joliet
% Social Security Will Cover for Single Person Necessities Cost of Living: 66.87%
Monthly Necessities Expenditures: $2,440.79
2022 Average Monthly Rent: $1,201
Monthly Groceries Cost: $357.89
Monthly Healthcare Cost: $562.40
Monthly Utilities Cost: $319.56
Waukegan
% Social Security Will Cover for Single Person Necessities Cost of Living: 62.56%
Monthly Necessities Expenditures: $2,608.91
2022 Average Monthly Rent: $1,387
Monthly Groceries Cost: $353.01
Monthly Healthcare Cost: $564.16
Monthly Utilities Cost: $305.18
Elgin
% Social Security Will Cover for Single Person Necessities Cost of Living: 60.49%
Monthly Necessities Expenditures: $2,698.02
2022 Average Monthly Rent: $1,471
Monthly Groceries Cost: $360.88
Monthly Healthcare Cost: $543.07
Monthly Utilities Cost: $322.83
Chicago
% Social Security Will Cover for Single Person Necessities Cost of Living: 53.54%
Monthly Necessities Expenditures: $3,048.30
2022 Average Monthly Rent: $1,865
Monthly Groceries Cost: $364.26
Monthly Healthcare Cost: $515.53
Monthly Utilities Cost: $303.22
Aurora
% Social Security Will Cover for Single Person Necessities Cost of Living: 52.06%
Monthly Necessities Expenditures: $3,134.90
2022 Average Monthly Rent: $1,910
Monthly Groceries Cost: $360.51
Monthly Healthcare Cost: $543.07
Monthly Utilities Cost: $320.87
Naperville
% Social Security Will Cover for Single Person Necessities Cost of Living: 51.52%
Monthly Necessities Expenditures: $3,167.86
2022 Average Monthly Rent: $1,919
Monthly Groceries Cost: $381.12
Monthly Healthcare Cost: $553.03
Monthly Utilities Cost: $314.33
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Methodology: For this piece GOBankingRates first identified Illinois' 10 most populous cities as sourced from the 2021 American Community Survey as conducted by the United States Census Bureau. With these 10 cities isolated, GOBankingRates then used Sperling's Best to find the cost of living index for each listed city, looking at grocery and healthcare index scores. Next, GOBankingRates used data from the Bureau of Labor Statistics 2021 Consumer Expenditure Survey to find the annual expenditure amount for both grocery ("food at home") and healthcare costs for people aged 65 and older in order to find how much a couple 65 and over would spend on groceries and healthcare in each city on a monthly basis. GOBankingRates then added monthly housing, grocery, and healthcare costs together. GOBankingRates then compared these monthly necessities expenditures against a Social Security check based on the average monthly benefit for retired workers, $1,632.04 ($3,2604 for a couple), sourced from Social Security Administration. All data was collected and is up to date as of January 5, 2023.
This article originally appeared on GOBankingRates.com: How Much of Your Living Costs Will Social Security Cover in These 10 Illinois Cities
