Many people who retire on just Social Security don’t intend to do that. Rather, they wind up having to retire on Social Security alone because they find it too difficult to save for retirement independently.
AARP found last year that 20% of Americans ages 50 and over have no retirement savings whatsoever. And as of 2024, Americans 65 and older had a median 401(k) balance of $88,488, according to Vanguard. People with that little money in savings are virtually living on Social Security alone, since, with a typical withdrawal rate, they’d be getting $4,000 a year from their savings.
The Social Security Administration releases data every month to give the public a sense of what benefits look like. In May, the last month for which data is available, the average monthly benefit for retired workers was about $2,002. Now, let’s look at how that benefit might hold up in today’s rental market, according to Zillow data.
1. New York City
The average monthly rent in New York City is $3,695. This means the average Social Security benefit would only cover a little more than half of rent.
2. San Francisco
The average monthly rent in San Francisco at $3,495. The average monthly Social Security benefit would only cover a little over half the cost of a typical rental.
3. Los Angeles
The average rent in Los Angeles is $2,750 per month. The average monthly Social Security benefit still couldn’t cover that.
4. Boston
The average rent per month in Boston is $3,400. The average Social Security benefit would not be able to pay for the typical rental.
5. Chicago
The average rent is $2,010 per month in Chicago. The average Social Security benefit is just shy of being able to cover that.
6. Austin
The average rent per month in Austin is $2,100. The average monthly Social Security benefit is about $100 short of being able to cover that cost.
7. Denver
The average monthly rent in Denver is now $2,200. The average monthly Social Security benefit is about $200 short of being able to pay that amount.
8. Phoenix
The average monthly rent in Phoenix is $1,968. The average Social Security benefit could cover that, but there wouldn’t be much money left over.
9. Saint Louis
The average monthly rent in Saint Louis is $1,250. It’s possible to cover that on Social Security, but you’d need to stick to a strict budget.
10. Cleveland
The average monthly rent in Cleveland is $1,200. It’s possible to pay that on Social Security, but you would need to spend the rest of your monthly check very carefully to cover the rest of your costs.
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