Living on a fixed income presents numerous challenges, particularly for retirees reliant on Social Security. With the average monthly payment for retired workers set at $2,071, many find the financial landscape daunting, especially when it comes to choosing where to live. The Independent’s exploration of the 50 states through six vital financial categories reveals stark differences in affordability for retirees.
In assessing the cost of living, income taxes on Social Security payments, property taxes, vehicle taxes, homeowners insurance, and monthly grocery costs per person, Tennessee has emerged as an ideal destination for retirees. With the eighth-lowest cost of living across the United States, Tennessee also boasts no taxes on Social Security income, further easing financial pressures for retirees. The state presents an affordable property tax rate of 0.55 percent, translating to an annual cost of $1,650 for a $300,000 home. While homeowners insurance costs can be high—with averages for a $300,000 house reaching up to $3,709 in Memphis—more reasonable rates can be found in other regions, such as Blountville, where it drops to $1,936. Monthly grocery expenses average $347.
West Virginia ranks favorably as well, standing out as one of the top-five states for affordability in essential categories such as homeowners insurance and grocery costs. The state’s annual home insurance costs average $1,047, making it the fifth-lowest nationwide. Additionally, monthly grocery bills for individuals are reported at $334. Property taxes are relatively low as well, averaging $1,620 per year, although the state does impose a 4.82 percent income tax on Social Security earnings, costing retirees approximately $99.82 monthly.
Georgia also presents itself as a strong candidate for retirees. Notably, it was the only state among the top five to rank in the top 30 across all analyzed categories. Georgia does not tax vehicles, and monthly grocery costs average $347. The property tax rate is set at 0.81 percent, translating to an annual bill of $2,430 for a $300,000 home. Additionally, several property tax exemptions are available for seniors, particularly for those with low net incomes and for surviving spouses of certain public service members. Although Georgia’s income tax sits at 5.82 percent—ranking it 16th nationally—it remains a competitive option for retirees, with monthly costs of around $120.53 for those relying solely on Social Security.
These findings emphasize the importance of geographic considerations for retirees who depend on Social Security for their livelihoods. As inflation and living costs continue to rise, the disparity in affordability across states will be a crucial factor for many as they navigate their retirement years. With options ranging from Tennessee’s tax-free status on retirement income to West Virginia’s low grocery and insurance costs, the landscape offers various paths for financial comfort and security in retirement.
