Here are the 7 US cities with the lowest average Social Security payments — plus 3 ways to top up your benefit
We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.
Social Security income isn't very high throughout the United States, with average benefits coming in at just $22,884 annually, according to the Social Security Administration.
In some cities, however, it's far lower than average, with many seniors getting benefits that would offer an annual income at or below the poverty level.
So which cities are home to retirees earning the lowest benefits? Let's take a look at them, along with some tips on how to bulk up your savings so you don't over-rely on Social Security no matter where you live.
The US cities with the lowest Social Security benefits
Among 345 U.S. cities ranked by SmartAsset, these are the seven cities with the lowest mean Social Security benefit:
Brownsville, Texas ($14,556)
Hialeah, Florida ($14,598)
Hartford, Connecticut ($15,220)
Pomona, California ($15,509)
El Monte, California ($15,586)
Paterson, New Jersey ($15,600)
Miami, Florida ($15,749)
How not to rely on Social Security alone
With benefits designed to replace only 40% of pre-retirement income, relying solely on Social Security benefits is a risk.
The good news is you don't have to try to make it on Social Security alone if you're serious about growing your nest egg, so it provides plenty of supplementary income. There are a few surefire steps to do that.
Delay retirement to have more time to save
Working longer provides the opportunity to earn income for more years that can be invested for your future. Working later in life is especially valuable because you can make larger tax-deductible contributions to retirement plans thanks to catch-up contributions you're eligible for starting at age 50.
Alternatively, you can put your savings in a high-interest savings vehicle that will help you save more money over a shorter period of time.
With SoFi’s high-yield checking account, you can get 0.50% APY on your checking balances — that’s 7x the national checking rate.
SoFi is a personal finance company and online bank that can help you get the most out of your banking experience with leading industry rates.
By opting for their competitive checking account rate, with no balance minimum, you can enjoy improved savings while still keeping your money accessible if you need it before retirement.
Plus, when you set up direct deposit, you can earn a cash bonus of up to $300.
Another way to jumpstart your retirement savings is with a high-interest savings account. You can check out our list of the Best High Yield Savings Accounts of 2024 to find some great savings options that earn you more than the national average of 0.4% APY.
Maintain the right investment mix
You don't want to be too conservative in your investments and limit your potential returns. A $6,000 annual investment at 10% over 30 years would leave you with a $986,981.59 nest egg, while the same investment at 7% would turn into just $566,772.33.
Subtracting your age from 110 gives you an idea of the percentage of your portfolio that should be in the market to get the right financial mix. If you need some guidance on picking the right stocks to reach that goal, [Motley Stock Advisor]https://moneywise.com/c/1/198/1640?utm_source=syn_aol_mon_aff&placement=4)
Stock Advisor is a subscription-based service that provides users with market insights and expert-stock picks, so you can better allocate your money to potentially generate better returns.
Stock Advisor’s thorough research helps you find companies that they think have the best chance of beating the S&P 500. They even give you access to a list of stocks to buy today so you can get in on timely opportunities.
To truly mix up your portfolio and supplement your retirement income while you’re at it, you can invest in alternative assets, like gold.
With Goldco, a precious metals dealer with an A+ rating from the Better Business Bureau, you can invest in a gold IRA., which combines the tax benefits of an IRA with the inflation-hedging properties of gold.
To learn more, you can request a free information kit that will tell you everything you need to know about setting up a gold IRA..
Take full advantage of help on offer
If your company provides an employer matching contribution to your retirement plan, contribute enough to claim it. There's also tax breaks for retirement investing, including the Saver's Credit, which offers up to a $1,000 tax credit for retirement account contributions if your income is below $38,250 as a single filer or $76,500 as a married joint filer in 2024.
Help from your employer and the government makes it cheaper to invest for retirement, as does personalized guidance from a financial professional.
If you want financial advice catered to your specific financial needs and goals, don’t hesitate to search for a professional advisor through Zoe Financial
Zoe Financial connects users with vetted financial advisors so that you can get professional advice on how to manage your finances and achieve your wealth-building goals.
When you answer a few questions about yourself, Zoe Financial will match you with a curated list of financial professionals, and you can book a free, no-obligation consultation to see if they’re the right fit.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
