In this article, we will discuss the 15 best places in New Jersey for a couple to live on only social security. You may skip our detailed discussion on Retirement Planning and see the 5 Best Places in New Jersey for a Couple to Live on Only Social Security.
Retirement Plans and Financial Literacy
Our research shows that the 2025 Social Security COLA will fall short of adjustments made in recent years. The latest Social Security COLA projections for 2025 anticipate that retirees are now looking at an average monthly boost of $48 or a mere increase of 2.5%. If true, this would be the lowest cost of living adjustment since 2020. For many retirees, such an adjustment might prove to be of little help in alleviating the inflationary pressures they experience during retirement. According to Gallup’s annual Economy and Personal Finance Poll this year, 41% of Americans believe inflation or the high cost of living is the most important financial problem facing their family.
To make matters worse, in May, Social Security’s Annual Trust Fund Report 2024 showed that trust fund balances are projected to deplete by 2033. Fortunately, thanks to a brighter economic outlook, the projected trust fund depletion date for the program was pushed back by one year. However, the ability of Social Security to continue paying full benefits beyond 2035 remains a mystery. Thus, for retirees looking to spend over two decades in retirement, living on social security alone might not be a viable option. In such cases, a combination of fixed income in the form of pensions as well as a considerable nest egg might be the best approach to securing a comfortable retirement.
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Earlier this year, Northwestern Mutual reported that the average American now believes they will require $1.46 Million to retire comfortably. This is $500,000 higher than the figure reported in 2020. While the golden number for a retirement nest egg continues to swell, research shows that Americans are struggling to prioritize savings over immediate short-term expenses. According to BlackRock, Inc. (NYSE: BLK) Read on Retirement report only 56% of respondents believe they are on track with their retirement savings to retire with the “lifestyle” they desire.
One of the reasons Americans struggle to save adequately is a lack of retirement planning. Last year, the Economic Innovation Group reported that in 2021, 55.5% of US workers lacked access to an employer-provided retirement plan. A lack of retirement planning can have a significant impact on retirement readiness. Similarly, studies show that financial literacy can also be related to retirement readiness. According to the American College of Financial Services study, asset levels can often be linked to financial literacy. On average, respondents with $1.5 million in assets scored approximately 50% in financial literacy tests, while those with less than $100,000 scored just 25%.
Those lacking financial literacy can improve their chances of a comfortable retirement by consulting financial advisors. By developing a formal plan tailored to individual goals and circumstances such as preferred retirement date, quality of living, and health concerns. According to the Retirement Savings and Spending Study 2023 by T. Rowe Price Group, Inc. (NASDAQ: TROW), individuals who have a formal retirement plan tend to have 62.5% more confidence about retiring than others.
T. Rowe Price Group, Inc. (NASDAQ: TROW) is a global asset management company that has a market cap of $24.1 billion. In late July, the company revealed that it had closed Q2 2024 with approximately $1.57 trillion in assets under management, which has since swelled to $1.61 trillion as of August 31st. During Q2 2024, the company generated a revenue of $1.73 billion, a 7.6% increase from the previous quarter. In addition, EPS increased to $2.11 from $2.07 in 2023.
The management revealed that its strong financial performance was boosted by favorable market gains, however, it also insisted that it is in a position to reduce net outflows and boost sales performance in the forthcoming quarters. T. Rowe Price Group, Inc. (NASDAQ: TROW) is one of the best dividend stocks in the market and has been growing its dividends consistently for the past 38 years. Following its impressive performance in Q2 2024, the company’s Board of Directors declared a quarterly dividend of $1.24 per share, in line with the dividend paid out in the previous quarter.
While we acknowledge the potential of TROW stock as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TROW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Retiring in New Jersey
In terms of affordability, New Jersey is one of the most unfavorable states to retire in. The average cost of living in the state is 19.5% higher than the national average. In addition to high costs, taxes are another concern when retiring in New Jersey. Although social security is exempt from taxation, other forms of retirement income may be eligible for deductions (depending on income levels). It also has one of the highest property taxes in the country. According to Zillow Group, Inc. (NASDAQ: Z), the median rent in the state is $2,500, making it one of the worst states to retire in on social security alone. However, amidst its treasure trove of beautiful beaches and boardwalks lie some underrated retirement spots. Join us as we look at the best places in New Jersey for a couple to live on only social security.
15 Best Places in New Jersey For A Couple to Live on Only Social Security
Methodology
To develop our list of best places in New Jersey for a couple to live on only social security, we initially picked out the most recommended places in New Jersey for a couple to live on only social security on the internet. We used 10+ sources, including our list of the Best Places to Retire in New Jersey, to develop a shortlist. Further research was narrowed down to these places only.
Among these best places, we developed a scorecard using metrics such as livability scores, cost of living, and average rent. Livability scores were sourced from Area Vibes while average rent was obtained from Zillow Group, Inc. (NASDAQ: Z). By standardizing these metrics on a linear scale, each place was scored, based on which we sorted our list in descending order. The top 15 places were chosen for our list of best places in New Jersey for a couple to live on only social security.
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Here are the 15 Best Places in New Jersey for a Couple to Live on only Social Security.
15. Trenton
Insider Monkey Score: 4.98
Livability Score: 76
Median Rent: $2,000
IM Cost of Living: 107.3
In terms of housing, Trenton is the most expensive destination on our list. However, median rent in the city is still 20% lower than the state average.
14. Absecon
Insider Monkey Score: 6.23
Livability Score: 72
Median Rent: $1,975
IM Cost of Living: 103.0
Absecon is located in Atlantic County. It is home to many parks and restaurants, along with Absecon Beach. The city is located just 10 miles from Atlantic City, meaning residents have access to world-class entertainment.
13. Pitman
Insider Monkey Score: 7.45
Livability Score: 75
Median Rent: $1,700
IM Cost of Living: 105.5
Pitman is a Philadelphia suburb located in Gloucester County. The cost of living in Pitman is 14% lower than the state average, and with a median rent of $1,700, it is one of the best places in New Jersey for a couple to live on only social security.
12. Blackwood
Insider Monkey Score: 7.98
Livability Score: 69
Median Rent: $1,695
IM Cost of Living: 104.6
Blackwood is also located in Gloucester County, just 10 miles from Pitman. In terms of rent and cost of living, Blackwood is slightly more affordable than Pitman.
11. Newton
Insider Monkey Score: 8.65
Livability Score: 74
Median Rent: $1,725
IM Cost of Living: 108.5
The town of Newton is nestled in the Kittatinny Valley in Northwestern New Jersey. The town is right next to the Kittatinny Valley State Park which features 4 lakes and several trails where residents can enjoy excursions such as paddleboarding, fishing, and horseback riding.
10. Phillipsburg
Insider Monkey Score: 9.82
Livability Score: 73
Median Rent: $1,617
IM Cost of Living: 109.4
Phillipsburg is one of the most scenic destinations in New Jersey. It is located along the Delaware River. Phillipsburg is home to many historical monuments and museums, such as the Delaware River Railroad Excursions and Phillipsburg Railroad Historians.
9. Northfield
Insider Monkey Score: 10.46
Livability Score: 75
Median Rent: $1,942
IM Cost of Living: 98.0
Northfield is an Atlantic City suburb. While Northfield does not have a beach itself, it offers access to some of the best shore towns in New Jersey. The cost of living in Northfield is 2% lower than the national average.
8. Collingswood
Insider Monkey Score: 10.87
Livability Score: 79
Median Rent: $1,895
IM Cost of Living: 101.6
In terms of livability, Collingswood is the best place in New Jersey for a couple to live on only social security. It is famous for hosting the Collingswood Farmers Market, which draws visitors from all over the region.
7. Woodbury
Insider Monkey Score: 10.99
Livability Score: 72
Median Rent: $1,713
IM Cost of Living: 103.0
Woodbury is located just a few miles from National Park which is home to Fort Mercer. Fort Mercer was the site of the Red Bank Battle in 1777 and is significant in American history. In addition, Woodbury is home to several parks and natural attractions along the shores of Lake Stewart and Lake Bell.
6. Gloucester City
Insider Monkey Score: 11.10
Livability Score: 72
Median Rent: $1,900
IM Cost of Living: 96.1
The city of Gloucester is a quiet and peaceful retirement destination. Although residents can easily visit Philadelphia to get their dose of entertainment, there are plenty of excursions within Gloucester itself, in the form of its various parks and wineries.
5. Camden
Insider Monkey Score: 14.56
Livability Score: 70
Median Rent: $1,600
IM Cost of Living: 98.6
If you’re looking for an affordable suburban city close to Philadelphia, Camden is one of the best places in New Jersey for a couple to live on only social security. It is located along the banks of the Delaware River. In addition to the amenities of Philadelphia, Camden has its range of attractions. These include the USS New Jersey, the Freedom Mortgage Pavilion, and the Adventure Aquarium.
4. Linwood
Insider Monkey Score: 14.56
Livability Score: 76
Median Rent: $1,850
IM Cost of Living: 93.9
Linwood is located in Atlantic County. For retirees who have a taste for clubs, casinos, or beaches, Linwood offers access to incredible entertainment. Moreover, in comparison to Atlantic City which has a livability score of 55, Linwood has a solid livability score of 76. It is also quite affordable, making it one of the best places in New Jersey to retire on a budget.
3. Millville
Insider Monkey Score: 14.97
Livability Score: 65
Median Rent: $1,600
IM Cost of Living: 94.3
Millville is located in southern New Jersey on the Maurice River. It is surrounded by several picturesque parks and nature reserves such as the Union Lake Wildlife Management. This is a 5,000-acre nature area with hiking trails, fishing, and wildlife viewing spots. In addition, it is one of the best Cities in the Northeast to Retire on $3000 a Month.
2. Vineland
Insider Monkey Score: 15.28
Livability Score: 66
Median Rent: $1,729
IM Cost of Living: 89.8
Just north of Millville lies Vineland, a city brimming with local wineries. In terms of cost of living, it is the most affordable destination on our list. Apart from its breweries, the city is home to the New Jersey Motorsports Park. In addition, the boardwalks and world-class entertainment spots of Atlantic City are just an hour’s drive to the east.
1. Bridgeton
Insider Monkey Score: 20.66
Livability Score: 74
Median Rent: $1,450
IM Cost of Living: 94.8
In terms of housing, Bridgeton is the most affordable destination on our list. It is located at the head of the Cohansey River, which later flows into Delaware Bay. The city lies an hour’s drive from both Philadelphia and Atlantic City. Its affordability, accessibility to major cities, and waterfront sights make it the best place in New Jersey for a couple to live on only social security.
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Disclosure: None. 15 Best Places in New Jersey for a Couple to Live on Only Social Security is originally published on Insider Monkey.