This article takes a look at the best Midwest city for retired couples living on just Social Security. Check the full list at 15 Best Midwest Cities for Retired Couples Living on Just Social Security.

The Financial Landscape for Retirees: Current Trends and Challenges

October is the most anticipated time for retirees in the US. For those who don’t know, the official COLA (Cost of Living Adjustment) is announced around this time. The Senior Citizens League (TSCL) predicts that COLA is going to be 2.63% in 2025, smaller than the 3.2% COLA announced one year prior. TSCL has increased its long-term forecast to 2.63% following the April release of the inflation report by the Bureau of Labor Statistics. According to the report, CPI-W increased by 12% in the last 12 months, remaining well above the Federal Reserve’s long-term target of a 2% prevailing rate of inflation. Doing the math, the COLA estimate implies that recipients will be bringing home SS checks with an increase of around $52 only.

For most seniors, this number implies the unlikelihood of their Social Security checks to keep up with inflation. This is particularly disappointing for retirees who only have these checks to depend on in the first place. As per an AARP analysis, roughly one in seven Social Security recipients depend on these benefits for almost all of their income. Such is the importance of this program in the lives of retirees that the Social Security Administration revealed that it helped move 28.9 million people out of poverty in 2022. SSI also lifted 2.5 million people out of SPM poverty in the same year.

Last year, Social Security Administration‘s annual trustees report revealed that Social Security’s combined funds paying retirement, disability, and family funds will be able to pay benefits in full up to 2034. The program is expected to pay 80% of scheduled benefits after. Thanks to a brighter economic outlook, the projected trust fund depletion date for the program has now been pushed to 2035. Provided Congress doesn’t act soon, the Social Security program will be able to pay 83% of the benefits only from the projected depletion date.

“This year’s report is a measure of good news for the millions of Americans who depend on Social Security, including the roughly 50% of seniors for whom Social Security is the difference between poverty and living in dignity — any potential benefit reduction event has been pushed off from 2034 to 2035”.

-Social Security Commissioner Martin O’Malley

Even though the Social Security program’s depletion date has been pushed to a year later, the risk of depletion still lingers. According to BlackRock, Inc. (NYSE: BLK) CEO Larry Fink, one of the biggest challenges facing the economy today is the inability to “retire in a financially sound way”, and these depleting funds are only one reason it is so.

“Today in America, the retirement message that the government and companies tell their workers is effective: ‘You’re on your own, And before my generation fully disappears from positions of corporate and political leadership, we have an obligation to change that.”

-BlackRock, Inc. (NYSE: BLK) CEO Larry Fink

Fink believes that the retirement age of 65 is a “bit crazy”. After all, people are now living longer, social security benefits need fixing, and working longer can only help individuals gather bigger savings for their retirement.

BlackRock, Inc. (NYSE: BLK) revealed its financial results for the second quarter of 2024 on July 15^th, 2024. Findings reveal that the company beat earnings expectations with a reported EPS of $10.36 compared to the anticipated $9.98. Some other highlights from the quarter include the acquisition of Preqin to enhance private market capabilities, $139 billion in net inflows in the first half of the year, and $82 billion in quarterly net inflows. The firm’s AUM reached $10.6 trillion, up $1.2 trillion year-over-year. This was steered by consistent organic growth as well as positive market movements. The positive impact of markets on average AUM, organic base fees growth, and higher performance fees and technology service revenues also resulted in an increase in revenue by 8% year-over-year.

Even though Social Security is not supposed to be the only source of income in retirement, it is an unfortunate reality for many retirees today. For such individuals, we have compiled a list of the best states to live on Social Security alone, with many states such as Ohio and South Dakota making the list. For retirees keen on living particularly in the Midwest, we have compiled a list of the best cities for retired couples living on only Social Security.

Methodology

To compile a list of the best Midwest cities for retired couples on just Social Security, we used our previous lists such as the best Midwest cities to retire, as well as external sources to gather a preliminary list. Next, we assessed the cities on different factors such as cost of living, home prices, average rents, and livability scores to allot them a unique Insider Monkey Score. Places were ranked in ascending order from the lowest to the highest scores. Livability scores have been taken from AreaVibes, rents are from Zillow, Zumper, and Apartments, while median home prices are from Redfin and Realtor.

Here is the best Midwest city for retired couples living on just Social Security:

1. Keokuk, Iowa

Insider Monkey Score: 47   

IM Cost of Living Index: 78.1          

Median Home Price: $108,000        

Average Rent (2-bedroom): $600   

Livability Score: 74

Based on our methodology, the best Midwest city for retired couples living on just Social Security is Keokuk, Iowa. Recognized as the “Geode Capital of the World”, Keokuk has some of the most diverse geode collections in the world. So much is the hype around geodes that there is an annual festival, too. For seniors who aren’t interested in geodes, there’s plenty more that the city offers. From enjoying beautiful walking paths and views of the Mississippi River at River Road Park to exploring the historic train depot at Keokuk Union Depot, there’s lots to see and do in this charming city. Living expenses are 21.9% lower than the national average, and housing costs are quite affordable for those looking to get by on Social Security.

Check out the full list of 15 Best Midwest Cities for Retired Couples Living on Just Social Security.

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