This article looks at the best place in Illinois for a couple to live on only Social Security. Check out our full list of 15 Best Places in Illinois For A Couple To Live On Only Social Security.
Managing on Social Security
Almost all workers in the US participate in Social Security by making payroll tax contributions. This means that nearly all older adults (97%) receive Social Security, or will be receiving it, in the future. While many retirees consider the checks they receive inadequate, the truth is that these benefits are much more modest than people realize. As per the Social Security Administration, the average check as of May 2024 was $1,778.24, with many retirees making much more than the average. According to the Center on Budget and Policy Priorities, these benefits replace about 39% of past earnings for an individual, although the replacement rate has fallen after the full retirement age for the program rose from 65 to 67.
As per international standards, the US ranks in the bottom third among major developed nations in terms of the percentage of average workers’ earnings replaced by the public pension system. The public pension program in an average OECD nation replaces over half of the earnings of an average worker, while the US replaces about 40%. The US Social Security Administration reveals that among beneficiaries over 65, these benefits represent 50% or more of income for 37% of men and 42% of men. For 12% of men and 15% of women, Social Security benefits account for more than 90% of their income.
On top of this- Social Security benefits are expected to deplete by 2035- one year later than previously anticipated. This is an alarming bell for the 12% of men and 15% of women who rely on it for more than 90% of their income. As per CNBC, Americans would need to double, or even triple their savings rate so that they can retire with a sufficient nest egg.
“The old-age poverty rate would soar if Social Security benefits were cut. Millions of seniors would be unable to afford basic needs, like food, shelter, and health care. Many seniors would have to turn to their children for financial help”.
-Richard Johnson, a senior fellow at the Urban Institute.
According to Prudential Financial, Inc. (NYSE: PRU), 55-year-old Americans are particularly underprepared for retirement. This generation has median retirement savings of less than $50,000, a figure that is significantly short of the ideal number Americans need for a comfortable retirement.
Prudential Financial, Inc. (NYSE:PRU) is an American Fortune Global 500 and Fortune 500 company. Its subsidiaries offer insurance, retirement planning, investment management, and other products and services to retail and institutional customers throughout the United States and in over 40 other countries. The company reported its second-quarter results on August 1, 2024, noting positive momentum across its businesses driven by robust sales, strong investment performance, and capital deployment in private alternatives in PGIM. Its adjusted operating income for Q2 2024 is $1.07 billion, compared to $956 million in the year-ago quarter. PGIM, the global investment management business for Prudential Financial, Inc. (NYSE:PRU), reports an adjusted operating income of $206 million in the quarter backed by higher asset management fees. This is up from $179 million a year ago.
Coming back to the question of living on Social Security, many potential retirees are now exploring affordable options within the US where they can live easily on their SS checks. One such state to live on Social Security is Illinois. The state of Illinois is one of the many states that don’t tax social security, is a tax-friendly state, with an affordable cost of living. For those wondering where to live in the state to stretch their checks the most, read on to uncover which parts of Illinois are best to live in on Social Security.
Copyright: halfpoint / 123RF Stock Photo
Methodology
To compile the list of best places in Illinois for a couple to live on only Social Security, we began by listing out cities and towns in Illinois and ranking them based on their cost of living, average rents, and livability scores. We assigned double weightage to the cost of living and rent for choosing the most affordable options in the state to live on Social Security. Places were scored and ranked in ascending order from the lowest to the highest scores. Rental data was sourced from Zillow, Zumper, and Apartments.com, while livability scores were obtained from Area Vibes.
Here is the best place in Illinois for a couple to live on only Social Security:
1. Galesburg
Insider Monkey Score: 40
IM Cost of Living: 76.4
Livability Score: 71
Average Monthly Rent (2-bedroom): $720
Based on our methodology, the best place in Illinois for a couple to live on only Social Security is Galesburg. Galesburg is best known for its small-town feel and affordable living costs, making it a top choice for seniors. The cost of living here is 23.6% lower than the national average, and monthly rents are also quite affordable. From independent shops to local dining options and a lively music scene, this city is just as entertaining and resourceful as it is affordable. The cultural scene is also very vibrant, while the presence of Knox College offers opportunities for social and intellectual engagement.
Check out our full list of 15 Best Places in Illinois For A Couple To Live On Only Social Security.
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Disclosure: None. This article is originally published on Insider Monkey.
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