15 Best Places in Utah for a Couple to Live on Only Social Security
In this article, we take a look at the best places in Utah for a couple to live on only social security. You may skip our full list by proceeding directly to The Best Place in Utah for a Couple to Live on Only Social Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Senior Citizen’s League recently announced its COLA estimates for 2025, and to the disappointment of retirees around the US, it is projected at just 2.66%, the lowest adjustment since 2020. This comes as a blow to all retirees, but especially to those already at risk of running out of retirement savings. According to MetLife, Inc. (NYSE: MET), 91% of plan sponsors are concerned that future retirees will run out of money in retirement. Moreover, MetLife, Inc. (NYSE: MET) also reports that 71% of U.S. employees are concerned about outliving their retirement savings, up from 60% just two years ago. For those reliant on a mix of social security and savings, a lower COLA significantly compromises their ability to conserve savings whilst also maintaining their desired standard of living. To make matters worse, Social Security’s Annual Trust Fund Report 2024 shows that trust fund balances are projected to deplete by 2033. Furthermore, although any cuts to retirement and disability benefits have been pushed back by one year, there is still a significant probability that come 2035, social security benefits will be slashed significantly.
Retirement Annuities
In the face of such challenges, both retirees and pre-retirees might have to look elsewhere to ensure they do not run out of money in retirement. MetLife, Inc. (NYSE: MET) announced earlier this year that it will be offering a fixed immediate income annuity that would allow working individuals with different levels of savings to annuitize portions of their savings, thus ensuring a guaranteed stream of income during retirement. Similarly, BlackRock, Inc. (NYSE: BLK) has launched its LifePath Paycheck solution. This solution aims to offer guaranteed retirement income using an investment strategy that is tailored to a target retirement date.
“We believe LifePath Paycheck will one day be the default retirement investment strategy, providing access to a predictable, paycheck-like income stream that can help improve the quality of life for millions of Americans in retirement.”
Such solutions offered by MetLife, Inc. (NYSE: MET) and BlackRock, Inc. (NYSE: BLK) may be an effective method of ensuring you don’t overspend your savings during the adolescence of your retirement. However, some research shows that a lack of financial literacy may be holding back retirees from maximizing their social security benefits.
Lack of Social Security Literacy
According to Forbes, 96 percent of Americans lose an average of $111,000 in their Social Security income due to errors made while filing for benefits. The reason people lose out on such a vast sum of money is that there is a lack of understanding regarding social security. According to a report by MassMutual, nearly 80% of people nearing retirement don’t have a basic knowledge of Social Security retirement benefits.
Furthermore, there have been studies by The American College of Financial Services that revealed that financial literacy can be linked to retirement wellness. Thus, familiarizing retirees and near-retirees regarding social security can significantly improve their ability to obtain a comfortable retirement. Consequently, AARP Utah recently began offering classes to clear up social security questions, in the hopes of assisting citizens in the Beehive State. While social security education is vital for retirees in all states, it is particularly important for retirees in states like Utah, due to its high cost of living & housing, as well as its unfriendly tax structure.
Retirement in Utah
Although Utah is home to some of the best places to retire in the American West in terms of natural beauty and adventure, it is far from being the most affordable state for retirees. The average home price in Utah is $522,884, per Zillow Group, Inc. (NASDAQ: Z). In contrast, Zillow Group, Inc. (NASDAQ: Z) reports that the average national home price in April was 358,734. Furthermore, the cost of living in Utah is 3.2% higher than the US average. Utah also lacks a retirement-friendly tax structure. It remains as one of the states that continue to tax social security as well as 401Ks, while other forms of pension incomes are subject to partial taxes. bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc bmc
There are also no tax exemptions for withdrawals from retirement accounts. In terms of property taxes, as of 2021, Utah had a property tax paid as a percentage of owner-occupied housing value of 0.57%. However, for those who don’t claim the Social Security benefits credit, there is a retirement tax credit of $450 offered by the state. If you’re wondering if Utah is affordable for retirees or where is the best place to retire in Utah on social security, join us as we look at the best places to live in Utah on social security. Alternatively, you may look at the best states to retire in 2024, including nearby states like Idaho, Nevada, or Wyoming.
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