More than one-in-10 retirees ages 65 and up rely on Social Security to cover 90% of their income needs in retirement, according to a new fact sheet issued by the U.S. government. Based on the data, 12% of men and 15% of women have very few other sources of income. Meanwhile, roughly 40% of retirees receive more than 50% of their retirement income from Social Security. The program was intended to supplement, not replace, retirement income and help cover roughly 40% of prior earnings.
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An AARP study shows that more Americans may rely on Social Security as the bulk of their income in the future. Twenty percent of people over 50 surveyed said they have no retirement savings. Since housing makes up such a large portion of living expenses, typically 30% or more of household income, where you live in retirement has a huge bearing on your cost of living.
With that in mind, GOBankingRates connected with real estate agents across the U.S. to find the top suburbs where people can get by on their Social Security income in 2025. Retirees will find plenty of options in Midwest suburbs, although it’s worth exploring other regions of the country, as well.
Erlanger, Kentucky
Situated in northern Kentucky, roughly 1.5 hours north of Louisville and 15 minutes south of Cincinnati, Erlanger has a cost of living 12% lower than the national average, with great savings in housing (31% lower), groceries (13% lower), and healthcare (5% lower), based on statistics from Payscale.com. Plus, retirees have access to premier medical care, with the University of Cincinnati Medical Center just over the state border.
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“Northern Kentucky has lots of great affordable cities to call home,” said Ariel Sizemore, real estate agent at Keller Williams Realty Services. “Erlanger is one great location, centrally located to all the shopping needs you may have, great restaurants and two large hospitals.”
If you have family and friends who want to visit from out-of-state, Sizemore added, Erlanger is just 10 minutes from Cincinnati National Airport. Sizemore said, “Erlanger has a median home price of under $235,000 and an average rental rate of under $1500 per month.” That should leave enough left over for most retirees to survive on their Social Security benefits.
St. Bernard, Ohio
St. Bernard, Ohio, is another senior-friendly Cincinnati suburb. The independent village sits in the heart of Greater Cincinnati, yet has a median home price of under $200,000, according to Sizemore. If you find you need some assistance with activities of daily living in your later years, the village has 11 continuing care retirement communities within 10 miles.
“St. Bernard is a great spot to land,” Sizemore said. “It’s only 10 minutes from the University of Cincinnati’s premier academic medial center that’s been ranked in the world’s best hospitals three years in a row.”
Kentwood, Michigan
The cost of living in Kentwood is 5% less expensive than the national average, according to Economic Research Instite. A suburb of Grand Rapids, Michigan, the town offers “a good balance of affordability and quality of life,” according to Elyse Sarnecky, director of marketing at Marketplace Homes.
“It offers a slightly more suburban feel with easy access to city amenities but at a lower cost than living in Grand Rapids itself,” she said. “Housing in Kentwood is affordable, and the area has a solid network of senior services, including community programs that can help stretch a retiree’s budget.
The city is known for being quiet and safe, with plenty of green spaces and parks to enjoy, along with a variety of local shops and restaurants. Kentwood also has an active senior center, offering activities and support services for retirees.”
Pendleton, Indiana
Home to the historic Falls Park, Pendleton, Indiana, is an idyllic town roughly 35 miles northeast of Indianapolis. Overall, the state of Indiana is friendly to retirees on a budget, with property and income tax breaks for seniors, no state tax on Social Security benefits, and no state inheritance or estate taxes.
As for Pendleton, Jennifer McCoy, Realtor for McCoy and Company Real Estate and Design, eXp Realty, LLC, said, “It has a strong sense of community and involvement.”
It has a small-town feel but is close to large medical facilities, she added. “It’s a perfect blend of families, young people and retirees.”
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This article originally appeared on GOBankingRates.com: 4 Suburbs To Live In on the Average Social Security Check in 2025, According to Real Estate Agents
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