$1 Million and Social Security: What You Can Afford on the East Coast

Retirement planning is all about ensuring your savings and income will sustain you for the rest of your life. For many retirees, the golden question is: how far will $1 million in retirement savings, combined with Social Security benefits, stretch—especially in regions like the East Coast, known for its mix of affordable areas and high-cost living?

Here’s a closer look at how far $1 million plus Social Security can take you in popular East Coast locations, factoring in living expenses, housing costs, healthcare, and lifestyle choices.

1. Understanding Retirement Income

To figure out how long your money will last, you need to calculate your combined income:

• $1 Million Savings: If you withdraw 4% annually (a common rule of thumb), that’s $40,000 per year.
• Social Security Benefits: The average Social Security payout in 2025 is projected to be around $1,800 per month, or $21,600 annually.
• Total Annual Income: $61,600 before taxes.

The cost of living on the East Coast varies significantly by state and city. Let’s break it down.

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2. The East Coast’s Most Affordable Locations

North Carolina

• Cost of Living: 10% below the national average.
• Example City: Asheville
  • Monthly rent for a one-bedroom: ~$1,200.
  • Utilities, groceries, and healthcare are relatively affordable.
  • Your $61,600/year Income: You can live comfortably here with room for occasional splurges and savings.

Florida

• Cost of Living: Around the national average.
• Example City: Tampa
  • Housing costs: Median rent is ~$1,400/month.
  • No state income tax, saving you thousands annually.
  • Your $61,600/year Income: Covers necessities, some travel, and leisure activities, but rising healthcare costs may eat into savings.

Virginia

• Cost of Living: Slightly below the national average in certain areas.
• Example City: Richmond
  • Housing: Median home price is around $320,000, with rent averaging $1,200/month.
  • Your $61,600/year Income: Sufficient for a modest lifestyle with manageable healthcare costs.

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3. Mid-Tier Cost of Living Locations

South Carolina

• Example City: Charleston
  • Housing: Higher than the national average, with median rent at $1,600/month.
  • Cost of food and healthcare: Slightly elevated compared to neighboring states.
  • Your $61,600/year Income: Comfortable but may require careful budgeting for luxury expenses.

Georgia

• Example City: Savannah
  • Housing and groceries are relatively affordable, but property taxes can be high.
  • Your $61,600/year Income: Allows for a balanced retirement with occasional indulgences.

4. High-Cost Areas

New York

• Cost of Living: 50%+ above the national average.
• Example City: New York City
  • Housing: Average rent for a one-bedroom is ~$3,000/month.
  • Healthcare and food are significantly more expensive than in southern states.
  • Your $61,600/year Income: Falls short without additional savings or downsizing to a less expensive borough.

Massachusetts

• Cost of Living: 30% above the national average.
• Example City: Boston
  • Housing: Median rent is ~$2,700/month.
  • Utilities and healthcare: Among the highest in the nation.
  • Your $61,600/year Income: Likely requires additional income sources to sustain a moderate lifestyle.

Connecticut

• Cost of Living: 20% above the national average.
• Example City: Stamford
  • Housing: Rent averages ~$2,500/month.
  • High property taxes and healthcare costs.
  • Your $61,600/year Income: Challenging without substantial additional savings or a minimalist lifestyle.

5. Key Factors That Impact How Far $1 Million Goes

• Housing: Rent and property taxes vary drastically. Downsizing or relocating to a more affordable region can stretch your retirement dollars.
• Healthcare Costs: These are especially high for retirees and can consume a large portion of your budget, especially in northern states.
• Lifestyle Choices: Dining out, travel, and hobbies can significantly affect how far your income stretches.
• State Taxes: States like Florida and New Hampshire have no income tax, while others, like New York, have high state and local taxes.
• Unexpected Expenses: Emergency medical bills, home repairs, or supporting family members can quickly deplete savings.

Tips to Maximize Your Retirement Income

1. Relocate to a Tax-Friendly State: States like Florida, Delaware, and South Carolina offer favorable tax policies for retirees.
2. Downsize Your Living Arrangements: Opting for a smaller home or renting can save thousands annually.
3. Use Medicare and Supplemental Insurance: Protect yourself from high healthcare costs.
4. Invest Wisely: Ensure your retirement savings are diversified and adjusted for inflation.
5. Delay Social Security: Waiting until age 70 to claim benefits can increase your monthly payout significantly.

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Conclusion

The East Coast offers a wide range of options for retirees, from affordable cities in the Carolinas and Florida to pricier areas like New York and Boston. With $1 million in savings and Social Security benefits, you can live comfortably in most areas—if you plan carefully and make strategic lifestyle choices.

Relocating to a more affordable state, managing healthcare expenses, and adopting a balanced budget can help ensure your nest egg lasts throughout your retirement. Whether you dream of coastal living or city life, understanding the cost dynamics of your chosen location is key to maximizing your golden years.

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