Retire Rich: Top 5 Costly US Cities

  • Marco
  • Aug 06, 2025

Social Security is a cornerstone of retirement planning for many Americans, designed to provide a basic level of income after they stop working. However, the reality of how far those benefits stretch varies significantly depending on where a retiree chooses to live. While the program aims to be a nationwide safety net, its effectiveness can be drastically reduced by the high cost of living in certain areas.

A recent analysis examined the relationship between Social Security payments, taxes, and living expenses in the 100 largest metropolitan areas in the United States. The findings reveal a concerning trend: on average, Social Security benefits cover only about 30% of a retiree’s total spending needs. This means that many retirees must rely on additional income sources, such as savings, pensions, or part-time work, to make ends meet.

Notably, several of the cities where Social Security provides the least adequate coverage are located in California, highlighting the challenges of retiring in the Golden State. Let’s take a closer look at some of the most challenging cities for retirees relying on Social Security:

Cities Where Social Security Stretches the Least

Here are some of the most challenging cities for retirees, based on the percentage of expenses covered by Social Security benefits:

  1. San Jose, California: San Jose, located in the heart of Silicon Valley, is a hub for innovation and technology. However, its high cost of living, particularly when it comes to housing, food, and healthcare, makes it a difficult place for retirees to live comfortably on Social Security alone. Benefits in San Jose cover only about 25% of the average retiree’s spending budget, requiring them to generate a substantial amount of additional income to cover their expenses.

  2. Oxnard, California: Oxnard, a coastal city with beautiful beaches, offers scenic views but limited financial security for retirees. Despite being a less expensive coastal city compared to others in California, the state’s overall high cost of living makes it challenging for retirees to manage on Social Security alone. Social Security benefits cover just over 25% of the average retiree’s annual spending budget in Oxnard.

  3. Washington, D.C.: Washington, D.C., stands out as the only city on this list not located in California. The nation’s capital presents its own set of financial challenges for retirees. Social Security payments cover less than 25% of a typical retiree’s annual budget in the city. High costs for housing, transportation, and healthcare mean retirees need significant additional income to maintain a comfortable standard of living.

  4. Los Angeles, California: Los Angeles, often associated with the “Hollywood dream,” is notoriously expensive. The cost of living in Los Angeles is significantly higher than the national average, making it particularly challenging for retirees. Social Security benefits cover a small fraction of their living costs, forcing many to depend on savings, pensions, or other investments to meet their financial needs.

  5. San Francisco, California: San Francisco is the most financially challenging city for retirees. Even if a retiree owns their home, property taxes, utilities, healthcare, transportation, and other daily expenses can quickly strain a budget. Social Security covers only a small percentage of what the average retiree needs to earn to get by in San Francisco.

Considering a Change of Scenery?

For retirees living in these or other expensive metropolitan areas, relocation might be a worthwhile consideration. Some cities offer a much more favorable cost of living relative to Social Security benefits. For example, in cities like McAllen, Texas, Social Security benefits cover a significantly higher percentage of spending. Buffalo, New York, is another example of a metro area where Social Security benefits provide more substantial coverage.

Evaluating Your Own Safety Net

Moving isn’t the right choice for everyone. Before making such a significant decision, retirees should carefully evaluate their own financial situation and support systems. Many of the most expensive cities also boast strong job markets and high home values, meaning that long-time residents may have accumulated substantial savings, retirement accounts, or valuable property. If a retiree has a robust financial cushion in addition to Social Security benefits, remaining in a familiar location near family and friends might be preferable to relocating solely for cost savings.

Ultimately, the decision of where to retire is a personal one that depends on individual circumstances, priorities, and financial resources. Understanding the relationship between Social Security benefits and the cost of living in different areas is crucial for making informed choices and ensuring a comfortable and secure retirement.

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