Cities With Highest Social Security Retirement Payment: Reasons behind why it’s still not enough

Highest Social Security Retirement Payment: Millions of Americans rely on Social Security for retirement income. The extent to which they can rely on their entitlements may be underestimated by some.

With the average benefit reported at just $1,907 per month, most retirees would struggle to cover the basics without money from savings to add to the income their benefits offer. With the average benefit reported at just $1,907 per month, most retirees would struggle to cover the basics without money from

In some cities, however, retirees earn a higher benefit than others. A financial technology firm called SmartAsset examined data from 345 U.S. cities and ranked them based on the average amount of Social Security benefits they receive. Here are where retirees are receiving the biggest benefits.

Cities With Highest Social Security Retirement Payment

There are ten cities where retirees receive the highest Social Security payments out of 345 metro areas ranked based on mean Social Security benefits.

There are 10 cities with the highest retiree social security income.

1. Ann Arbor, Michigan — $30,428
2. Carmel, Indiana —$30,069
3. Goodyear, Arizona — $29,157
4. Cambridge, Massachusetts —$28,219
5. Allen, Texas — $27,735
6. Sugar Land, Texas — $27,725
7. The Woodlands, Texas — $27,661
8. Highlands Ranch, Colorado — $27,443
9. Olathe, Kansas — $27,151
10. Fishers, Indiana — $27,133

Why is it not enough?

Even with benefits checks ranging from $4,851 to $7,544 more than the nationwide average, retirees in these metro areas would still face financial struggles if they tried to rely on just their Social Security.

An adult without children in Ann Arbor would need a salary of around $47,334 to cover basic necessities like housing and medical care, which is $16,906 more than what Social Security covers.

Adults without kids in Carmel, Goodyear, Cambridge, and Allen wouldn’t fare much better, with adults without kids requiring $44,773, $51,380, $62,487, and $45,875, respectively. The actual costs of living are far above the income these retirement benefits offer in cities where retirees average higher Social Security checks than most.

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Social security is not going to be enough for everyone

Every current and future retiree should come to terms with the reality that Social Security benefits are never going to be enough to fund their retirement.

Even if you live in a city where you and your peers get more benefits than most, this is still true. It’s true, even if you’re one of the fortunate few who get the absolute maximum benefit, which is $4,873 in 2024.

Social Security is only intended to replace 40% of pre-retirement income for most retirees, which is why you will always fall short. High-earners get even less out of it because the monthly benefits formula is progressive. A smaller percentage of income is replaced by benefits as earnings rise.

Trying to cover all of your expenses on 40% of what you previously earned is not sustainable for most people. The maximum benefit is only given to those who earn the inflation-adjusted equivalent of $168,600 for most of their career. The maximum annual Social Security benefit of $58,476 — which seems high to most — would still result in a substantial lifestyle alteration for those who receive it.

Ultimately, the only way to a secure retirement is to have savings to add to Social Security so you aren’t dependent on benefits alone. This is equally true if you live in the five cities where Social Security benefits are the highest, as it would be in any city or town across America.