Geographical Impact: How Social Security Benefits Vary Across States

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This article discusses how Social Security benefits may last longer for retirees in lower-cost-of-living states like West Virginia, Oklahoma, Kansas, Alabama, and Mississippi. The study found that in these states, a combination of Social Security benefits and retirement savings could last between 26.19 and 28.8 years. On the other hand, high-cost-of-living states like Hawaii, California, Massachusetts, Alaska, and New York may see benefits run out quicker, lasting between 8.8 and 15.38 years.

The study focused on how long $750,000 in retirement savings along with Social Security benefits would last retirees. This amount is higher than what many Americans currently have saved for retirement, with the average household retirement savings between $200,000 and $609,230 for those aged 65-74. Factors such as waiting longer to collect Social Security benefits, maintaining low expenses like paid-off housing and healthcare costs, and having family support nearby can all impact how long retirees can make their funds last.

Ultimately, individual circumstances play a significant role in financial planning for retirement. This study sheds light on the significant impact of geographical location and cost of living on the longevity of Social Security benefits and retirement savings for retirees. The stark contrast between lower-cost-of-living states and high-cost-of-living states showcases the importance of strategic financial planning for individuals approaching retirement.

With the average household retirement savings falling below the recommended amount for a comfortable retirement, it becomes crucial for retirees to consider factors such as when to begin collecting Social Security benefits, managing expenses, and having a support system in place to make their funds last.

By highlighting the varying durations of Social Security benefits and retirement savings across different states, this study underscores the need for personalized financial strategies tailored to individual circumstances. Utilizing resources effectively, making informed decisions regarding expenses, and understanding the potential impact of geographical location on financial longevity are essential components of retirement planning. As retirees navigate their financial paths, thoughtful considerations and proactive measures can help ensure a more secure and sustainable retirement.

Source:

https://www.newsweek.com/map-shows-where-social-security-payments-will-last-longest-1951131