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Social Security 2023 United States Retirees Rely on Social Security



Social Security 2023 United States Retirees Rely on Social Security

Social Security 2023 United States Retirees Rely on Social Security.Social Security benefits were never intended to be the sole or primary retirement income for Americans. The modest monthly payouts are a testament to this. However, a significant number of elderly Americans lean heavily on Social Security during their retirement years. This dependency is concerning, especially when considering the financial demands of retirement in the U.S.Also read this Social Security Updates : 12 New Allowances Considered for Disability Applications 

Social Security 2023 United States Retirees Rely on Social Security

To put things into perspective, as of June 2023, the Social Security Administration (SSA) reports that the average monthly payment for retirees stands at $1,837. Contrast this with data from 2021, prior to the inflation surge, which indicates that Americans aged 65 and above had average yearly expenses of $52,141, or $4,385 monthly, based on U.S. Bureau of Labor Statistics data cited by RetireGuide blog.

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The numbers clearly illustrate the risk of relying solely on Social Security for retirement. To safeguard against this, it’s crucial to accumulate retirement savings through vehicles like 401(k)s, IRAs, and other similar accounts.

Interestingly, there are regional variations in the U.S. regarding this reliance. A study by SmartAsset revealed that in 2022, the average U.S. retiree sourced 41.5% of their total income from Social Security. In certain cities, this percentage rises, with Social Security constituting up to half of a retiree’s total income.

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Typically, retirees in Midwestern cities are more dependent on Social Security. In contrast, those in California, where the cost of living is notably higher, tend to rely on it less.

Cities Most Dependent on Social Security (as per SmartAsset):

  1. Fort Wayne, Indiana: 50.04% of total retirement income.
  2. Wichita, Kansas: 49.81%.
  3. Nashville, Tennessee: 48.15%.
  4. Lincoln, Nebraska: 47.1%.
  5. Surprise, Arizona: 46.78%.
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Conversely, retirees least dependent on Social Security are predominantly found in California. The exception is Washington, D.C., where retirees depend on Social Security for just 30.22% of their total retirement income. Following Washington are California cities: Chula Vista (31.63%), Riverside (33.53%), Sacramento (33.56%), and Glendale (33.88%).

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