Understanding how much retirees can rely on their safety net—and the necessity of saving for a comfortable retirement—plays a crucial role in financial planning for many Americans. A recent report from LendingTree outlines cities where retirees can stretch their Social Security payments the furthest, as well as areas where local costs force greater dependency on other income sources.
Why is it important?
Research indicates that, on average, Social Security accounts for about 30% of retirees’ spending, with some metropolitan areas seeing this figure exceed one-third. The choice of where to live and retire can significantly influence how effectively these benefits support financial security or create added stress.
What do you know
LendingTree found that in the 100 largest metropolitan areas, retirees face an average pre-tax spending of about $71,407, while Social Security income in those areas generally amounts to around $21,500—covering about 30.1% of expenses. They analyzed these regions using data from several official sources, such as the Bureau of Labor Statistics and the Census Bureau, to rank the top 10 states where retirees’ expenses are best supported by Social Security.
McAllen, Texas, topped the list, with Social Security covering 34.6% of spending due to its low cost of living.
The other cities ranking in the top 10 are:
- Buffalo, New York – Coverage rate: 33.1%
- El Paso, Texas – Coverage rate: 32.9%
- Syracuse, New York – Coverage rate: 32.8%
- Scranton, Pennsylvania – Coverage rate: 32.7%
- Wichita, Kansas – Coverage rate: 32.6%
- Augusta, Georgia – Coverage rate: 32.4%
- Tucson, Arizona – Coverage rate: 32.3%
- Little Rock, Arkansas – Coverage rate: 32.3%
- Tulsa, Oklahoma – Coverage rate: 32.3%
As one might expect, most cities ranked at the bottom are in California, reflecting the state’s higher overall cost of living. For instance, San Francisco fared the worst, with average annual spending before tax estimated at $85,364 and Social Security income at $20,726, covering only 24.3% of that spending.
The remaining cities in the lowest 10 include:
- Los Angeles, California – Coverage rate: 24.9%
- Washington, D.C. – Coverage rate: 24.9%
- Oxnard, California – Coverage rate: 25.3%
- San Jose, California – Coverage rate: 24.4%
- San Diego, California – Coverage rate: 25.7%
- Sacramento, California – Coverage rate: 26.4%
- Riverside, California – Coverage rate: 26.6%
- Stockton, California – Coverage rate: 26.7%
- Miami, Florida – Coverage rate: 26.9%
What people are saying
Matt Schulz, chief consumer finance analyst at LendingTree, remarked, “Most people are not fortunate enough to have seven-figure nest eggs or reliable pensions. Most have tight budgets and limited income.”
