Cities Where Your Social Security Check Gets Eaten Up

California and Hawaii are among the most desired domestic tourist spots in the United States, but not necessarily the most desirable destinations for retirees relying on Social Security to maintain their living standards. (Here are America’s most popular tourist attractions according to data.)

With the high cost of living in these states, retirees would spend considerably more of their Social Security checks on the same items than they would in other states. Further, within these states, some cities are even more expensive than the state average. Nationwide, several metropolitan areas have high cost of living. 

To determine the cities where your Social Security gets eaten up, 24/7 Wall St. reviewed data on retirement income from the U.S. Census Bureau and data on cost of living from the Economic Policy Institute 2022 Family Budget Calculator. The list consists of metropolitan areas where Social Security income can cover 52% or less of average monthly household living expenses for one person.

The average Social Security retirement benefit for a retired worker is $1,837 a month, according to the Social Security Administration as of June 2023. On average, Social Security will replace about 40% of your annual pre-retirement earnings,” the SSA explains. In high-cost places, this is a challenge, especially while inflation, now running at 3.7%, continues to eat away at savings and at purchasing power. 

Of the 25 metropolitan areas on the list, the ones where your Social Security gets eaten up the most, 11 are in California, including eight of the top 10. In two of those California locales, Social Security benefits can cover less than 40% of expenses. The other two cities in the top 10 — Honolulu and Kahului-Wailuku-Lahaina — are in Hawaii. 

Five California cities on the list are in the the top 10 for the highest monthly living expenses among the 384 metropolitan statistical areas tracked by the U.S. Census Bureau. (Also see: how much you need saved to retire comfortably in your state.)

Other than the 11 metros in California and two in Hawaii, only one other state has multiple cities on the list. In three metros in Louisiana your Social Security check gets eaten up — in Hammond, Monroe, and Alexandria.

Click here to see the cities where you social security check gets eaten up.

Click here to read our detailed methodology.

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