American retirees often envision spending their retirement years on a fixed income, despite the challenges of living solely on social security.
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The American Couples’ Guide to Low-Cost Retirement Living: This article examines the five best states for retirees in terms of social security. Living off of social security alone seems manageable if you have a car or van and a decent parking space. This view is consistent with what the average American retiree imagines when they think about spending their retirement years on a fixed income.
Insider Monkey Score: 60
Cost of Living Index: 87.7
Tax Friendliness: Tax-Friendly
Health Index: 96.6
Average Rent (2-bedroom): $920
Taking fifth place in West Virginia. The cost of living in West Virginia is 12.3% less than the national average. The state is tax-friendly because it also has low sales and property taxes. Additionally, it has been gradually eliminating the tax on Social Security benefits. For individuals with a federally adjusted gross income of less than $50,000 or married couples with a federally adjusted gross income of less than $100,000, the state currently offers a tax deduction on all Social Security benefits.
Insider Monkey Score: 61
Cost of Living Index: 89
Tax Friendliness: Tax-Friendly
Health Index: 87.5
Average Rent (2-bedroom): $857
Arkansas is ranked 4th on our list. Arkansas has a cost of living that is 11% less than the national average and is a tax-friendly state for retirees. The state levies little property tax as well. Groceries in this state are subject to a lower tax rate despite the high sales taxes. Seniors benefit from the fact that durable medical equipment and prescription drugs are tax-exempt. This state is great for couples who want to retire on Social Security alone because the rents are also very reasonable.
Insider Monkey Score: 67
Cost of Living Index: 92.4
Tax Friendliness: Very Tax-Friendly
Health Index: 100.1
Average Rent (2-bedroom): $1,116
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Another state that does not tax Social Security income is Wyoming. As a result, in this state, retirees can enjoy their Social Security benefits tax-free. In actuality, the state does not impose a state income tax. For retirees, particularly those who want to continue working after retirement, this is welcome news. This state has a 7.6% lower cost of living than the national average, but its healthcare system offers better quality care.
Insider Monkey Score: 71
Cost of Living Index: 92.4
Tax Friendliness: Very Tax-Friendly
Health Index: 97.9
Average Rent (2-bedroom): $1,028
South Dakota, which ranked second, has favourable tax laws, a low cost of living, and healthcare that is on par with the national average. Retirees receive a variety of retirement income tax-free because the state does not impose income taxes. For couples living off of social security alone, the state is a good option because of its respectable healthcare system.
Insider Monkey Score: 72
Cost of Living Index: 86.3
Tax Friendliness: Very Tax-Friendly
Health Index: 98.4
Average Rent (2-bedroom): $999
First on our list, Mississippi is a great option because of its pleasant climate, affordable housing, low cost of living, tax-friendly environment, and general affordability. The state has a very low tax rate and exempts many forms of retirement income from state income taxes. But healthcare is the one area where the state has to make improvements. Some of the best retirement communities in the state for couples in need of high-quality healthcare are Jackson and Southaven.
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